INTRODUCTION
It has been forecast that there will be shortfalls in capacity available to match customer demand in Northern Ireland with additional generation capacity required of 60MW in the year 2003/04 and 120MW in the year 2004/05.
Therefore NIE’s Power Procurement Business is seeking, with the approval of the DGES NI, to contract for this additional generating capacity for these years. The type of contract offered will be the standard availability and energy contract similar to those already in use in Northern Ireland with NIE PPB, allowing for whatever proposals are put forward by demand managers. The bids will be assessed by NIE. See below for details.
Request for Proposals for Generation Capacity
Northern Ireland Electricity’s Power Procurement Business (NIE PPB) is seeking to contract for additional electrical generating capacity for the years 2003/04 and 2004/05.
Forecast Shortfall
It has been forecast that there will be shortfalls in the capacity available to match customer demand in N. Ireland with additional generation capacity required of 60MW in the year 2003/04 and 120 MW in the year 2004/05. For the year 2005/06, there is forecast to be adequate capacity, so the contract intended to be offered will be for a minimum of 60MW in 2003/04, a minimum of 120 MW in 2004/05 and nothing firm thereafter. However, any flexibility beyond 2004/05 may be of advantage.
Contract Offered or Alternative Scheme to be Adopted
The type of contract offered will be the standard availability and energy contract similar to those already in use in N. Ireland with NIE PPB. A typical contract is available from NIE on request.
Alternatively, proposals which would reduce N. Ireland’s peak electricity demands by the equivalent amounts will be considered as alternative schemes achieving the same objective.
Assessment of Bids
NIE will assess the bids to determine which represents the most economically advantageous arrangement to NIE PPB, having regard to prices charged, system despatch considerations and environmental impact. NIE PPB is regulated by Ofreg and their approval and agreement to the decision will be a necessary element in the process. However, NIE PPB will not be obliged to accept the bid that is assessed to be the lowest nor to contract with any of the bidders.
Connection requirements
Generators require to be connected to the electricity system and all costs in complying with connection conditions must be borne by the generator. Plant which is capable of system support services (SSS) will be credited with those benefits in the assessment but payments and rebates under any SSS Agreement will be assigned to NIE PPB under the contract.
Submission of Bids
Prospective generators are asked to submit descriptions of their schemes to NIE PPB at Castlereagh House, 12 Manse Road, Castlereagh, Belfast BT6 9RT before 2nd September 2002. Bids for generating capacity should be in the form of an availability payment £A/MWh available and an energy payment formula to cover any form of plant operation required by central dispatch. Proposals for demand reduction should be in a form which can be assessed against additional generation options.
Bids may be to cover the entire shortfall or a part thereof. Contract(s)will be awarded to the bid or combination of bids which provides the capacity at least cost. Bidders may bid jointly to cover the requirement.
NIE reserves the right to assemble bids from separate bidders.
Any other constraints or limitations, either technical or commercial that are associated with any bid should be detailed explicitly.