Servicio Extenda Oportunidades de Proyectos y Licitaciones Internacionales y Multilaterales

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Servicio Extenda Oportunidades de Proyectos y Licitaciones Internacionales y Multilaterales HONDURAS e-consult: Techno-economic analisys of maximum penetration rates of Variable Renewable Energy in

price in Honduras is among the highest in the region, affecting industrial competitiveness and economic growth. The Generation Mix in Honduras is currently led by thermal generation, amounting a 54.

1 Servicio Extenda Oportunidades de Proyectos y Licitaciones Internacionales y Multilaterales HONDURAS e-consult: Techno-economic analisys of maximum penetration rates of Variable Renewable Energy in the Honduran Power Grid Techno-economic analisys of maximum penetration rates of Variable Renewable Energy in the Honduran Power Grid Assignment Description CONTEXT OF THE ASSIGNMENT The electricity price in Honduras is among the highest in the region, affecting industrial competitiveness and economic growth. The Generation Mix in Honduras is currently led by thermal generation, amounting a 54.4% share, while renewable generation account for 42.9% (mainly hydro). The thermal park mainly entails Heavy Fuel Oil (HFO) fired generation units. In addition to the high environmental impact of this generation, its cost is high and highly exposed to oil price volatility, pushing electricity price upwards especially when oil price is high. As one of the measures to address these issues, the GoHN promoted the installation of new indigenous Renewable Energy (RE) capacity to supply the increasing demand of electricity and displace thermal generation. In 2007, the GoHN passed a law to promote Renewables in the country and in 2010 launched the first bidding process for energy purchase from renewable sources. As result, 52 projects amounting 708 MW were awarded a feed-in tariff embedded in a Power Purchase Agreement in Today, Honduras has 380 MW solar PV installed, with an additional 80 MW expected to come online by March There are 170 MW of wind power generation in Commercial Operation.

2 The lack of previous experience in managing the integration of Variable Renewable Energy (VRE) technologies in the system, and the weak transmission and distribution networks in Honduras, may result in suboptimal solutions for the system operation. Furthermore, the risk of network curtailments reducing the associated cash-flows, may constrain the future installation of additional variable RE capacity in the country. A better understanding of the existing capacities of the network, infrastructure reinforcements required for expanding RE capacity beyond current limits and capacity building on the system operator to better define operational procedures to deal with Variable RE technologies are crucial to overcome the existing barriers for RE expansion. ASSIGNMENT DESCRIPTION In order to better move towards the RE agenda, there is a need to perform a study to analyze and recommend actions to improve, and allow further integration of RE into the national electric grid. The study will provide guidance to the Government of Honduras and ENEE on the techno-economic underpinnings for integrating variable renewable energy technologies into ENEEs main power system in short and medium term. This study would include the cumulative technical and economic aspects of integrating all the envisioned solar PV plants that are already commissioned and those which have requested integration into the system but are not generating yet. Furthermore, the study shall review the technical compliance of the commissioned plants with the PPA s provisions (in particular, the Special Incentive) and the local regulations and system operation parameters, evaluate maximum penetration rates and verify their risk to the stability of the grid, both on a national and Central America regional level. The study will make recommendations to improve the integration of the solar PV plants, including ones which are expected to join the grid in the short-medium term timeframe, defining investments required in the grid, operation strategies and standards to be complied with by VRE plants, in order to ensure safety and quality standards and the reliability of the network. Furthermore, the study will determine the impact of VRE on the optimal Economical Dispatch and on the increase of ancillary services provided by the system to ensure grid stability and security of supply, including the relevant system operation cost increase associated. The study will also identify how further integration of the Honduran Transmission grid in the integrated system of neighboring countries (SIEPAC), as well as the integration of a natural gas

3 power plant into the grid, could accommodate an increasing penetration of wind and solar power. The analysis will be used to shed light on the associated costs of VRE integration in the Honduran Power System and identify critical actions and areas of investment needed in the Power System which will help stabilize the national and regional grids and reduce power outages. FUNDING SOURCE The World Bank intends to finance the assignment/services described above under the following trust fund: - KGGTF - TACKLING POWER SECTOR BARRIERS FOR GREEN GROWTH IN HONDURAS INDIVIDUAL/FIRM PROFILE The consultant will be a firm SUBMISSION REQUIREMENTS The World Bank now invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Consultants may associate to enhance their qualifications. Interested firms are hereby invited to submit expressions of interest. Expressions of Interest should be no more than 25 pages and should be submitted, in English, electronically through World Bank Group etendering ( Following this invitation for Expression of Interest, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding.

4 QUALIFICATION CRITERIA 1. Provide information showing that they are qualified in the field of the assignment. 2. Provide information on the technical and managerial capabilities of the firm. 3. Provide information on their core business and years in business. 4. Provide information on the qualifications of key staff. Qualification Criteria 1. Provide information showing that they are qualified in the field of the assignment. 2. Provide information on the technical and managerial capabilities of the firm. 3. Provide information on their core business and years in business. 4. Provide information on the qualifications of key staff. * - Mandatory selection # Electronic Submissions through World Bank Group econsultant2 This is an announcement from the World Bank's e-consultant2 system. Please refer to for the official announcement as well as for any updates.

5 No dude en contactarnos si necesita información sobre cómo afrontar esta licitación o sobre cualquier proyecto o licitación internacional y multilateral en marcha o en preparación, así como información sobre empresas que hayan desarrollado proyectos similares que puedan ser posibles socios. División de Capacitación Profesional EXTENDA - Agencia Andaluza de Promoción Exterior Contacto: Luis González Romero multilateral@extenda.es 1 Extenda únicamente pone en contacto a demandante y oferente del producto o servicio, no teniendo mayor intervención en la posterior relación contractual que pudiese generarse entre las partes.

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