Refine UK Capacity Market Auction Design Options

Refine UK Capacity Market Auction Design Options

We require expert advice during the policy development phase of the UK Capacity Market over the next few months. In particular we are looking for experts who have practical experience on designing and implementing other international Capacity Markets in the US and Europe.

Reference number: 421/06/2012

Deadline date:16/07/2012

This deadline is for… 12 noon

Contract value:£0 – £65,000

Location where the contract is to be carried out: London

Is this suitable for smaller suppliers? No

Is this contract suitable for a voluntary, community and social enterprise organisations? No

Name of the buying organisation: Department of Energy and Climate Change (DECC)

 

Description of the contract

We require expert advice during the policy development phase of the UK Capacity Market over the next few months. In particular we are looking for experts who have practical experience on designing and implementing other international Capacity Markets in the US and Europe. The key objective of this work will be to contribute to the detailed Capacity Market auction design and development of the specific auction design rules. Person specification: • expert knowledge and practical experience of Capacity Market auction design; • critical evaluation of different Capacity Market auction design elements; • challenge function to the DECC design team; • provide advice on solutions to difficult Capacity Market auction design questions within a short timeframe as required; • develop the detailed Capacity Market auction design rules; and • knowledge of electricity and international Capacity Markets. The key outputs are: • provide a critical assessment of the policy team’s initial auction de-sign work/strawman; • provide advice and recommendations on all of the key auction design elements, including for example: auction lead times, contract duration, payment levels (e.g. whether to pay a clearing price or pay-as-bid) and the development of secondary trading; • provide a detailed proposal (which builds on the outputs above) for an auction within the GB market. Such a proposal will take account of, for example, specific GB market characteristics, lessons learnt from other auctions and scope for gaming or the exercise of market power within the GB market; and • develop the detailed auction design rules.

 

Documents

 

Classification of the contract

79415200 Design consultancy services

73000000 Research and development services and related consultancy services

 

Additional information

Contract type: Services – Unspecified

Is it a framework agreement? No

Is this contract related to a programme of funding? No

Contract will be awarded based on: Most economically advantageous tender in terms of: The criteria stated in the contract documents

Estimated length of contract: 10 Months

 

Who to contact

Contact name Mala Gill

Organisation name Department of Energy and Climate Change (DECC)

Address 4th Floor, 3, Whitehall Place, London, United Kingdom, SW1A 2AW

Telephone 0300 068 5884

Extension number: 5884

Fax

Web address www.decc.gov.uk

 

How to apply

If you wish to take part in this procurement please contact Mala Gill (telephone number or email as above) for the Tender Specification and relevant documents for this procurement. Any late submissions will not be considered. DECC reserves the right to halt the procurement process and to not award a contract. DECC will not be held liable for recovery of costs from unsuccessful bids if a contract is not awarded. All costs will be borne by the bidding organisations. If a contract is created it will be upon DECC terms and conditions, which are available on the main DECC website – www.decc.gov.uk and will be issued to organisations invited to submit a tender bid. Completed tender submission must be returned by post to DECC, address given at the top of this advertisement, by noon on 16 July 2012. We require 3 hard copies (one of which must be signed). Electronic versions of your bids are to be sent to Mala Gill (Mala.Gill@decc.gsi.gov.uk). Interviews, if deemed necessary, will be held in the week commencing 23 July 2012 (suppliers will be notified of this in the week commencing 16 July 2012). If successful and upon contract signature, the supplier is expected to attend a kick-off meeting taking place after 23 July 2012. Project completion is required by 31 March 2013.