KenGen seeks consultants to provide ancillary services

Kenya Electricity Generating Company PLC (KenGen) hereby seeks to procure consultancy services for The Study on the Impact of Provision of Ancillary Services on KenGen’s power generation plants from suitably qualified firms to study the impact of providing ancillary services on KenGen’ s power generation plants and in preparation for the anticipated development of ancillary services market in Kenya and the larger East African power market.

The short-listed firms will be invited to participate in the Request for Proposal (RFP) process thereafter. The qualifying firm/consultant or consortium will be expected to undertake the assignment within a period of six calendar months.

Scope of works
The consultancy services shall include but not limited to the following:

a) Study how generation machines have responded to frequency excursions and provision of other ancillary services over the years and the impact on these machines.

b) Study the financial impact on the current Power Purchase Agreements (PPA).

c) Simulate future scenarios of ancillary service needs and their impact based on power sector projects’ pipeline and plans especially their technical and financial impact on integration of more variable renewable energy (VRE) in the grid.

d) Advice on the additional investment costs required to offer the ancillary services.

e) Advice on the additional maintenance costs as well as the opportunity cost of providing these ancillary services.

f) Study the possibility of increasing the capacity, increasing operating range of existing plants and other mitigation measures and their associated costs.

g) Benchmark methodologies used to price ancillary services in other similar regulatory jurisdictions and power markets.

h) Provide a suitable pricing methodology and formula for provision of ancillary services within the existing generating power plants and in cases where there is a dedicated facility that provides ancillary services.

i) Advise on the relevant contractual framework for provision of ancillary services.

j) Train staff on the findings of the study, pricing formulas and other best practices of managing ancillary services and advising KenGen on simulation tools that can be used for future studies by KenGen for ancillary service requirements and modelling.

k) Provide support in the implementation of the recommendations of the final report.