Draft of Terms Of Reference For Hiring a Consultant “Study for establishing the regulation and tools in implementing of DG connection to distribution network”

Outlines 1.Back Ground 2.Objectives 3.Scope of Work & Approach 4.Deliverables 5.Estimated Cost 6.Main Issues of Study 7.Main Activities of Consultant Study 8.Time Line & Project Action Plan 9.Confidentiality

1. Background 1. Background (1 of 2) In 12 th HWC meeting in Hua Hin, Thailand that the “Guidelines for connection alternative & renewable energy Power Plant to distribution networks” agreed and adopted by HWC as a result of Project No. 12 of HWG # 3 Distribution. By that reason, Project No. 12 has officially finished all tasks and dismissed. Due to the complexity and some potential obstacles of Distributed generation (DG), HWC agreed to conduct further study with the help of consultant that funded by HAPUA.

In the “Guidelines for connection alternative & renewable energy Power Plant to distribution networks” there was some limited contents as following items :  In terms of regulations and policies, it was just sharing and information exchange among utilities. In other word, there was no regulations or policy that adopted as common regulation or policy.  In terms of technical and commercial aspects, it was only general cases that adopted as a common but for particular things such as technical standard where each utility still used their own standards.  Up stream issues such as technology of alternative & renewable power plant, construction etc did not explored in detail caused duplicating topic with WG No. 4.  Focused on DGs connected to Distribution Network only not to the Grid.  Supposed that DGs supplied energies to DNO but not vice versa. 1. Background 1. Background (2 of 2)

To explore all related rules, regulations, policies, technical and commercial aspects about DG that enable to be adopted as common regulations among member countries. To undertake more comprehensive study that not only limited to DG issues but also could be developed in implementing the smart grid initiatives. 2. Objectives 2. Objectives (1 of 2)

To develop one case study in order to support and complement the literature study. To map and explore the problems and barriers in DG Connection and including its mitigation and solution. 2. Objectives 2. Objectives (2 of 2)

4. Scope of Work & Approach 4. Scope of Work & Approach (1of2) The Consultant will carry out the comprehensive study regarding DG Connection to the Utility Network (Distribution or Grid network) and the implementation on smart Grid initiatives. Methods and approach: Literature and Best Practices studies on related issues, reviewing current regulations and policies, conduct a case study as pilot project.

HAPUA will fund the consultant study and each country will share to bear all cost. Each member country will participate as counterpart to support data and information. HAPUA Secretariat will coordinate with other WGs such as WG 2 and 4 to ensure that a comprehensive study undertaken by looking at all the related issues as a whole, so that if possible the study will be done into one package. 4. Scope of Work & Approach 4. Scope of Work & Approach (2of2)

5. Deliverables A Hand Book on Best practices for the Successful of DG Connection to Distribution Network and further development for smart grid initiatives. Handy and Practical tools for technical and commercial assessment for DG Connection to the Distribution Network. Proposed Regulations, Policies, technical and commercial aspects that should be reviewed for minimizing barriers to entry of DG connection.

6. Estimated Cost Duration of Study : 6 Months Bidding Process : ICB (International Competitive Bidding). Cost estimation : Approx. US $ 250,000. (cost components in detail are not available yet)

7. Main Issues of Study 7. Main Issues of Study (1of2) 1.Assessment of Current Regulations and Policies. 2.Technical Aspects :  Reliability and Quality impact of The DG.  Protection requirements.  Renewable Energy Power Generation Characteristics  Equipment and Installation requirements.  System Connection ( Grid or Distribution network)  Testing and commissioning.

3.Financial and Commercial Aspects :  Tariff Pricing : purchasing energy, pricing laws, loss of utility revenue, exit fees, remittance for line loss etc.  Incentives : investment and production tax credit, carbon credit etc.  Cross subsidies.  Cost of Charges : connection, extension and reinforcement network, standby and other penalties etc. 4.Assessment of Current Regulations and Policies. 5.Environmental and Clean Energy issues. 7. Main Issues of Study 7. Main Issues of Study (2of2)

1.Performing Draft TOR in the 12 th HWG 3 Meeting. 2.Proposed TOR will be presented in the next HWC Meeting. 3.Designation of PIC from each member country as counterpart of Consultant. 4.Adopted TOR of WG 3 will be processed by HAPUA Secretariat. 5.Proposed List Of Consultants with international reputation from each member country (if any). 6.HAPUA Secretariat will combine the TORs from other WGs that will be offered to the Consultant. 7.If possible, HAPUA Secretariat will cooperate with other ASEAN Agencies such as the ACE (ASEAN Centre for Energy) to avoid duplication of projects and also more effective and efficient in financing. 8. Main Activities of Consultant Study Consultant Study (1of2)

8.International Competitive Bidding (ICB) process for consultant study done by HAPUA Secretariat or represented by one of representative member country. 9.Contractual signed by the winner consultant. 10.Performing Study carried out during 6 months in one member country as a Pilot Project. 11.Interim report of Study will be presented in HWC Meeting. 12.Final Report of Study and finishing Consultant Contract. 8. Main Activities of Consultant Study Consultant Study (2of2)

9. Time Line & Project Action Plan ActivitiesTimeResponsibility Performing Draft of TOROct 10 Former Project Leader of Project No.12 Presentation of Proposed TOR to 13 th HWC Meeting Nov 10HWG 3 Designation of PIC from each member country as counterpart of Consultant Dec 10HWG 3 Final TOR and proposed candidate of consultants submitted to HAPUA Secretariat. Jan 11HWG 3 ICB ProcessMarch 11HAPUA Secretariat Contractual SignedJun 11HAPUA Secretariat Performing Study and Pilot Project Implementation Jun – Nov 11Consultant Presentation of Interim Report in HWC Meeting Nov or Dec 11 Consultant Final Report of Study and Finishing Consultant Contract Dec 11HAPUA Secretariat

10. Confidentiality Any information or data arising during the discussion and Project Implementing shall be kept in strict confidence. Confidential information or data shall not be disclosed to third parties without prior written consent from all members. The data that are not available due to the confidentiality shall be recorded for further reference.

17 Thank you