Design for Stimulating Electricity Demand Among Utility Customers

• Country: Niger
• Summary: Design for Stimulating Electricity Demand Among Utility Customers
• NET Ref No: 51600324
• Deadline: 15 Apr 2021
• Financier: World Bank (WB)
• Purchaser Ownership: Government
• Tender Value: Refer Document
• Notice Type: Tender
• Document Ref. No.: 1273714
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• Description:
• Expression of Interest are invited for Design for Stimulating Electricity Demand Among Utility Customers in Niger. REQUEST FOR EXPRESSION OF INTEREST FOR SELECTION # 1273714 This Request for Expression of Interest is for a Firm Selection. Please log in as a valid Firm User if you wish to express interest in this selection. Selection Information Assignment Title Design for Stimulating Electricity Demand Among Utility Customers in Niger Publication Date 24-Mar-2021 Expression of Interest Deadline 15-Apr-2021 at 11:59:59 PM (Eastern Time - Washington D.C.) Language of Notice English Selection Notice Assignment Country · NE - Niger Funding Sources The World Bank Group intends to finance the assignment/services under: · BB - BANK BUDGET · TF0B5095 - Niger Energy Sector Support for Accelerating Electricity Access Individual/Firm The consultant will be a firm. Assignment Description Assignment Objective The objective of this assignment is to support the design of a demand stimulation pilot program through the financing of appliances and productive uses for grid-connected customers in Niger including households and small businesses. Scope of Work The assignment shall include the development of a comprehensive business model that details the options available to NIGELEC for undertaking an appliance financing pilot for their customers. This would include the following tasks and activities: Task 1: Market assessment i) Segmentation and barriers to demand growth: a) Analyze the various customer segments of the utility including their share in electricity consumption and contribution to NIGELECs revenues. The analysis should include the trends observed in energy consumption and revenues for each customer segment in the last 3 years at least, differentiating urban and rural customers, based on available data from the utility. b) Create a segmentation model using existing data (such as household surveys, utility data, etc.). c) Identify the main barriers to growth in power consumption among certain geographical areas and/or customer segments both Small and Medium-sized Enterprises (SMEs) and households d) Based on customer segmentation and barriers to demand growth of existing grid-connected customers, prepare a short summary of the main findings of the analysis that could help understand the correlation between consumption and revenue from each segment and barriers and opportunities to demand growth. ii) Appliance selection and appliance value chain: a) identify the most commonly used electrical equipment for the predominant uses and identify appliances and productive uses for which there is demand by households and/or SMEs to be included in the project, as well as other appliances with high market potential. b) based on the results of recent rural electrification projects and the analysis of contexts and lifestyles, estimate and forecast the market of electric appliances and productive uses equipment among NIGELEC customers, with special attention to women, women-headed households and businesses c) collect and establish a database of appliances and productive uses including the technical specifications, applicable quality standard, efficiencies, cost range, availability on the local market, importers and distributors d) Develop recommendations and monitoring system for minimum performance standards and warranty terms for Niger market based on national enforcement regime and institutions. This has to build on ECOWAS/WAEMU standards and labelling initiatives in West Africa. e) Identify competent companies or organizations as well as financial institutions that are interested in partnering with the utility in promoting these appliances, based on consultations with the private sector. f) Identify existing distributors that the utility could partner with to distribute/install these appliances, ongoing technical support for consumers, maintenance, after sales services, etc. g) Identify suppliers and importers for appliances that are not yet in the market. iii) Impacts/background: Assess the impact of the low consumption and consuming segments on utility finances under different electrification scenarios (for Niger this can build on ongoing financial model being developed) and estimate the benefits to the utility from undertaking appliance financing. Consider non-financial benefits as well, including improved customer relations under each proposed model. The assessment will also look at the benefits for customers in terms of increased impact of electrification for households and SME beyond lighting, additional revenue generation and affordability of electricity. 2.2 Task 2: Business model i) Program design. Based on the above assessment, recommend a program that promotes electric appliances and productive uses of energy among NIGELECs customers addressing demand, supply issues, customers awareness, financing, after sales services and potential regulatory issues preventing the utility from being able to effectively support appliance distribution and financing. The consultant will propose the design of an innovative financial mechanism that enables a market for high quality electric equipment, a network of distributors/retailers, payment ease and affordability. Such financial mechanisms could include subsidies, grant, vouchers, installment payments, result-based finance that could be embedded in the utility customer payment tools using digital technologies. Specifically the program will identify and recommend geographical areas and/or customer segments for implementation of the pilot for quick lessons learning, based on the above analysis and other parameters such as impact on utility revenues, impact on customers, cost of rollout, ease of access, administration of financial incentives to customers, etc.; and based on inputs from the utility about target customer segments. ii) Payment: Design pricing models adapted to customers segments and payment mechanisms for different appliances identified (such as mobile money, bank, or on-bill payments) focusing on the on findings and recommended program features. Before undertaking this design, the Consultant will ensure agreement on the business models with the utility, national stakeholders and the Bank team. iii) Cost: Provide details on the resources needed to implement the project including funding for all activities (with sources of funds) and personnel requirements. iv) Financing: Recommend specific delivery and financing models for appliances and productive uses and modes of implementation including entities that could finance those assets i.e. the utility, asset finance companies, off-grid solar system distributors, MFIs or banks, etc. and how the risks can be mitigated for these entities. The analysis should include consumer finance pricing and credit models, return on investment for asset financier, etc. Explore how consumer credit intelligence can be derived from existing data to design appropriate services. Consult with financial institutions and identify a list of institutions that would be interested in partnering with the utility on such a project. 2.3 Task 3: Development of enabling environment i) Communications: Provide recommendations on the best entity (companies leading appliances, utility, etc.) to lead consumer marketing campaign or alternative communication efforts. a) Explore channels through which the consumers could be targeted with communication/marketing for new products and services. b) Map likely customer communication & interaction points. ii) Considerations for Scale-Up: a) Overcoming constraints: Explore dependencies of a successful pilot and increase in demand through future interventions including any technical constraints related to powering appliances. These may include system capacity, power supply, voltage fluctuations and implications for powering appliances, etc. b) Recommend support actions to identify and foster productive use of electricity to help ensure low income consumers can pay for their required electricity service c) Costing and financing: Consider connection costs for new customers and the potential of bundling this with appliance financing. Articulate financing needs along the value chain including on the supply and on the demand sides and targeted subsidies to support basic services such as refrigeration d) Enhance appliance finance product and business model to be considered during scale-up (certain desirable features of the product and business model may not realistically be available in time for pilot launch, but could be considered in future iterations) e) Assess gaps in skills that would need to be reinforced for the utility to have the capacity to meaningfully scale up these innovative business models for governance Including a gender angle around development of new skills and hiring of female staff. iii) Data and consumer protection: Develop consumer protection recommendations and explore value of data for the utility to improve its service offerings or through sharing, with permission, to other institutions. iv) Legal: Review the legal and regulatory framework to identify supporting regulations or restrictions and provide actionable recommendations to overcome any related hurdles. Attachments · Optional TOR File 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. * TERMS OF REFERENCE Design for Stimulating Electricity Demand Among Utility Customers in Niger 1 Background and Objectives 1.1 Context The World Bank-s Energy Sector Mana
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