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DRAFT Te Aponga Uira o Tumu Te Varovaro Request for Tender No. 151641 Request for Tender Services Contract: Stage 2: Rarotonga Renewable Energy Implementation Plan to 2020 and Beyond Reference No. 151641 Date of Release: 26 th May 2016 Page 1 of 52

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DRAFT

Te Aponga Uira o Tumu Te Varovaro Request for Tender No. 151641

Request for Tender

Services Contract:

Stage 2: Rarotonga Renewable Energy Implementation Plan to 2020 and Beyond

Reference No. 151641

Date of Release: 26th May 2016

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DRAFT

Te Aponga Uira o Tumu Te Varovaro Request for Tender No. 151641

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Glossary and Definitions

Term Explanation

RFT Request for Tender

Tender Management Team The team that is responsible for the management of this Tender, including the evaluation and administrative functions

Evaluation Committee The group of people within the Tender Management Team that will evaluate this Tender

Financial Policy The Cook Islands Government Purchase and Sale of Goods and Services Policy

PMU Project Management Unit

OEC Office of the Energy Commissioner

MFEM Ministry of Finance and Economic Management

OPM Office of the Prime Minister

TAU Te Aponga Uira, Rarotonga Power Utility

EC Energy Commissioner

REDD Renewable Energy Development Division under the Office of the Prime Minister

IPP Independent Power Producers

Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

Table of ContentsREQUEST FOR TENDER..........................................................................................................................................................51.1 SUMMARY OF REQUIREMENT..........................................................................................................................................51.2 SUBMISSION OF TENDER.................................................................................................................................................61.3 TENDER/OFFER CLOSING TIME.......................................................................................................................................71.4 CONTACT OFFICER.........................................................................................................................................................71.5 SELECTION PROCESS......................................................................................................................................................81.6 NOTIFICATION OF ACCEPTANCE........................................................................................................................................81.7 PROBITY......................................................................................................................................................................81.8 CONFIDENTIALITY..........................................................................................................................................................81.9 STATEMENT OF REQUIREMENT(S).....................................................................................................................................91.10 CONDITIONS OF TENDERING............................................................................................................................................91.10.1 STANDARD CONDITIONS.............................................................................................................................................9

APPENDIX A................................................................................................................................................................... 11

FORM OF TENDER...............................................................................................................................................................11Proposed Contractor.......................................................................................................................................................12Referees who may be Contacted.....................................................................................................................................13Schedule of Prices............................................................................................................................................................14

APPENDIX B................................................................................................................................................................... 15

TENDER SPECIFICATIONS.....................................................................................................................................................15

APPENDIX C................................................................................................................................................................... 21

EVALUATION CRITERIA........................................................................................................................................................21

APPENDIX D................................................................................................................................................................... 23

TERMS AND CONDITIONS FOR THE ENGAGEMENT OF A CONSULTANT..............................................................................23

APPENDIX E................................................................................................................................................................... 27

SCHEDULE............................................................................................................................................................................27

APPENDIX F.................................................................................................................................................................... 32

INFORMATION BACKGROUND ON RAROTONGA ELECTRICITY NETWORK FOR TENDERERS................................................32

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

REQUEST FOR TENDER

1.1 Summary of RequirementTe Aponga Uira O Tumu-Te-Varovaro (TAU), Rarotonga’s electricity utility, is in the process of transition. In the past TAU has been a conventional electricity utility, a statutory-monopoly state-owned enterprise, managing a single diesel power station, supplying electricity to all the consumers of Rarotonga.

The Cook Islands Government’s policy of pursuing 100% renewable energy generation by 2020 is a key driver for TAU’s decision making and planning moving forward. This requires a very different infrastructure and business model to continue to reliably and cost effectively deliver TAU’s services to its customers.

Following the Government’s policy announcement TAU initiated Stage 1 of the plan towards the 2020 goal and as such released a policy allowing for grid connected renewable energy generation by the private sector up to a certain system performance limit. This limit has no been achieved.

Approximately 16% of electricity units generated on Rarotonga will be from renewable energy sources from July 2016, both a mix of TAU and privately owned facilities, centralised and distributed.

Increasing beyond this limit requires higher investments in a range of enabling technology to ensure, when renewable generating assets are connected to the grid, reliability of the electricity network and to supply its customers remains; this is considered Stage 2 of Rarotonga’s path to Governments 2020 goal.

Conventional diesel-powered electricity generation has a high variable cost (fuel) and a lower fixed cost component. Renewable Energy generation on the other hand tends to reverse this position, and the transition needs to be handled with expertise and close focus. Moreover, the change from a single energy source (diesel), to multiple sources (wind, solar, others) and multiple suppliers (IPPs) requires strategic planning and management, infrastructure investments and a revised business model for TAU.

This document specifies the terms of reference for the development of a Stage 2: Rarotonga Renewable Energy Implementation Plan 2020 and beyond that details a commercially viable and technically reliable supply of electricity over the short, medium and long term for Rarotonga. It is expected that the process of developing this document by the successful tenderer will include the development of appropriate commercial and technical models, and as such be focused on building the capacity of TAU technical staff to implement the strategies contained in it, model challenges as they arise as well as be able to apply accepted principles for a commercial and technical approach to decision making to 2030.

It is intended that through this works, the TAU team is then able to design and tender for the required infrastructure investments, and the associated commercial arrangements.

The outcomes and specifications for this work is detailed in Appendix B: Tender Specifications.

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

It is expected that the working relationship between the successful tenderer and TAU is a collaborative partnership approach with TAU driving the process and project alignment to its identified outcomes to maximise ownership, knowledge transfer to its technical staff and to ensure ease of implementation of the Rarotonga Renewable Energy Implementation Plan 2020 and beyond. As such the successful tenderer is expected to add to the existing capacity of TAU over the length of the contract to achieve the stated outcomes.

Through this RFT, Te Aponga Uira O Tumu Te Varovaro (the ‘Principal’) wishes to develop a Rarotonga Renewable Energy Implementation Plan 2020. This RFT will identify Tenderers that are able to undertake the contract works according to the specifications set out in Appendix B.

1.2 Submission of TenderTenders shall be submitted either in:

Hard copy - submitted in two complete hard copies, packaged and labelled “CONFIDENTIAL” and have the following information clearly exhibited on the outside:

Te Aponga Uira, Rarotonga, Cook Islands

Tender Name Services Contract: Rarotonga Renewable Energy Implementation PlanReference No. 151641

Tenders must be placed in the tender box located at the TAU Headquarters in Tutakimoa, and submitted in the form specified in Appendix A by the due date. Failure to do so will result in the tender being disqualified.

OR

Softcopy: By emailing the tender bid as a PDF file to [email protected] only with the subject line Rarotonga Renewable Energy Implementation Plan 2020. Tenders must be received to the inbox of [email protected] only in the form specified in Appendix A by the due date and no other email address. Failure to do so will result in the tender being disqualified. The receipt time on the inbox will be used as the receipt time for the purposes of ensuring a tender is within the time limits.

NOTE:

1. Telefax tenders will not be accepted.

2. All potential tenderers are encouraged to register their interested via email to [email protected] well prior to the closing of the tender. Registering interest will ensure the tenderer is updated with any additional information or updates released prior to the closing of the tender. Only those registering their interest to this email address will received updates.

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

1.3 Tender/Offer Closing Time Tenders close at 4.00pm on Friday 13 th May 2016 (Cook Island time) . The Tender Box is located at the TAU Headquarters, Avarua, Rarotonga, Cook Islands, (or submitted electronically to the email address detailed above) and tenders should be addressed to:

Apii TimotiChief Executive OfficerTe Aponga UiraRarotonga, Cook Islands

The tenderer is responsible for ensuring that the tender is placed in the Tender Box by the closing time, or is received at the email address outlined above (if submitted electronically).

Late tenders will not be accepted.

1.4 Contact OfficerNegotiations will not be permitted between the Tender Team and any prospective tenderers during the tender advertising period. However, prospective tenderers may seek clarification of the tender documents prior to submitting their tenders. Any enquiries in relation to this tender should be directed to the Contact Officer identified below. Tenderers should note that to ensure no disadvantage to any tenderers, responses to questions pertaining to this RFT will be shared with all potential tenderers as Notice to Tenderers through the Cook Islands Government Procurement Web Site via www.procurement.gov.ck and will be updated as required through the tender period. Responses to questions pertaining to this RFT will also be circulated by sequentially numbered notices to registered Tenderers. Questions related to the RFT regarding clarification will close on 3:00 pm Monday 9th May 2016.

Tenderers should ensure they are registered and have downloaded or received all files for this RFT including all issued notices. Prospective Tenderers must register their interest to participate in this RFP process by emailing the Contact Officer before the closing of the Tender who will acknowledge receipt of the registration. Only registered Tenderers will receive notices directly as and when they are issued.

Any enquiries in relation to this tender should be directed to the Contact Officer at the address given below.

Name of Person: Dallas M. YoungTitle: Commercial Manager

Avarua, RarotongaE-mail: [email protected]

Please note communication is only acceptable via email.

1 Please do not use this email for electronic submissions of tenders. All electronic submissions are only acceptable through the procurement email [email protected]

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

1.5 Selection Process All tenders received by 4pm on Friday 13th May 2016 (Cook Island time) will be considered. Tenders submitted in the form specified in Appendix A to this RFT will then proceed to the evaluation stage.

Evaluation of the responses to this RFT will be in accordance with the Evaluation Criteria described in Appendix C. Failure to comply with the Standard Conditions will result in immediate exclusion from the Evaluation process.

1.6 Notification of Acceptance Tenders shall remain open for acceptance and shall not be withdrawn for a period of sixty (60) working days from the Closing Date of the tender. Unsuccessful tenderers shall be notified in writing by the Principal or their representative within 10 working days of acceptance of the successful tender.

If no tender is accepted by the Principal within twenty (20) working days after the Closing Date, each tenderer will be notified in writing by the Principal or their representative whether their tender is still under consideration or is no longer being considered.

The Tender Team reserves the right to carry out due diligence checks and contact referees and/or customers regarding the performance of the tenderer as it may pertain to this RFT.

The Principal shall not be bound to accept the lowest priced tender or the highest scored tender or any tender.

The tenderer must confirm their acceptance of the terms of the contract for services attached at Appendix D. If the tenderer is unable to agree to any clause, it must set out in a table form the clause reference, reason why the tenderer cannot accept it and proposed alternative wording.

The successful tenderer will be notified by the Tender Team in writing on a date yet to be confirmed but within sixty (60) working days of the Closing Date of this tender.

1.7 Probity No gifts or entertainment of any nature will be permitted between any parties involved throughout the tender process, including: tenderers or potential tenderers, tender team members, evaluation team members, the Te Aponga Chief Executive Officer and Management, Te Aponga Board members or any other member or organisation that may have an involvement with any aspect of the tender process.

1.8 Confidentiality All Specifications, Schedules and written technical information supplied to Tenderers shall not be used for purposes other than the preparation of a tender submission for this specific RTF, without the approval of the Principal.

Information submitted by a Tenderer shall be regarded as confidential and shall not be disclosed to a third party except with the prior written agreement of the Tenderer.

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

1.9 Statement of Requirement(s) In addition to the TOR for this services contract attached as Appendix B, the following points should be stressed:

1. The contract is to be contracted for up to 5 months from June to October 2016;

2. Preferred tenders will be those proposing to be based out of the TAU Main office in Tutakimoa for the duration of the project. The purpose of this is to ensure knowledge transfer to TAU staff and further to ensure on completion of works the technical staff of TAU are able to successfully implement and update the plan drafted over the coming years.

3. The power system and commercial modelling is able to be transferred to TAU on completion of works for use in future decision making.

4. Any foreign applicants must meet BTIB and visa entry requirements and related costs.

1.10 Conditions of Tendering The Standard Conditions are the Mandatory Criteria applying to this Tender. Any offer that does not meet the terms specified in the Standard Conditions below is non-conforming and will not be evaluated.

1.10.1 Standard Conditions 1. Tenders must be completed in the format contained in Appendix A of this RFT. If offers do not

comply with this format, they will not be accepted.2. Tenders must be deposited in the required form by the closing time as specified in Clause 3 of

this RFT.3. All proposals and related documentation in respect of this RFT must be in the English language. 4. Tenderers must tender to provide services for the whole of the contract as specified in Appendix

B “Specifications”. 5. All prices must be in New Zealand dollars.6. Tenders are presented in hard copy format and/or soft copy format as specified in the RFT.

Telefax tenders will not be accepted.7. Note that foreign companies who wish to carry on business in the Cook Islands will be required

to submit an application for approval from the Business Trade and Investment Board (BTIB). Any fees associated with the registration are to be covered by the bidder.

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

APPENDICES

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

APPENDIX A

Form of Tender

Apii TimotiCEO, Te Aponga UiraPO Box 112, AvaruaRarotonga, Cook Islands

Having examined the Tender Documents in relation to Tender Reference No. 151641 and dated __/__/2016, released by TAU, we submit the following offer.

We offer to complete, handover to the Principal and remedy defects in the whole of the said Tender Specifications in conformity with these Tender Documents for the sum of [ insert the price offered in text with the value in numbers thus (NZD$__________.__)] stated exclusive of Value Added Tax, together with all such other sums as may be ascertained in accordance with the Contract.

We undertake to complete and handover the whole of the Contract Services within the period stated in the Conditions of Tendering.

We agree to abide by this Tender for a period of sixty (60) days from the date fixed for receiving the same and it shall remain binding upon me and may be accepted by you at any time before the expiry of that period.

Unless and until a Contract Agreement is prepared and executed, this Tender together with your written acceptance thereof, shall constitute a binding contract between us.

We understand that you are not bound to accept the lowest or any Tender you may receive.

We understand that no contract shall come into existence, and no legal or other obligations shall arise between me and you (or between me and any other agent of the Principal) in relation to the conduct, outcome or otherwise of the Tender process, prior to and apart from your acceptance of our Tender.

We understand that you may contact the referees nominated by me in this offer and make whatever enquiries you deem necessary regarding our financial health and ability to deliver the Contract Services. Further, during the assessment stage we understand and agree that you may request specific information from all tenderers in order to assist your assessment. We acknowledge that a failure to provide such information may result in disqualification from the process.

We provide the following information required to be submitted with this Tender:

1. Completed Schedule of Prices

2. Schedule of Project Experience

3. Curriculum Vitae

4. List of Referees you may contact in relation to this offer.

5. A Brief Proposal outlining the intended methodology and approach (there is no specified template for this).

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

Signature: _______________________________________________________________________

Printed Name: _______________________________________________________________________

Position Held: _______________________________________________________________________

Tenderer: _______________________________________________________________________

Address: _______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

Date: _______________________________________________________________________

E-mail Address: _______________________________________________________________________

Phone No.: _______________________________________________________________________

Facsimile No.: _______________________________________________________________________

Proposed Contractor

Name: ________________________________________________________________

Company: ________________________________________________________________

Address: ________________________________________________________________

________________________________________________________________

________________________________________________________________

E-mail Address: ________________________________________________________________

Phone No.: ________________________________________________________________

Facsimile No.: ________________________________________________________________

Works/Skills to be performed.

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Educational/Technical Qualifications:

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Work Experience: ___________________________________________________________________________________________________________________________________________________________________________________________________

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

_____________________________________________________________

Referees who may be Contacted

1. Name: ________________________________________________________________

Company: ________________________________________________________________

Address: ________________________________________________________________

________________________________________________________________

________________________________________________________________

E-mail Address: ________________________________________________________________

Phone No.: ________________________________________________________________

Facsimile No.: ________________________________________________________________

Nature of Relationship with Tenderer:

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. Name: ________________________________________________________________

Company: ________________________________________________________________

Address: ________________________________________________________________

________________________________________________________________

________________________________________________________________

E-mail Address: ________________________________________________________________

Phone No.: ________________________________________________________________

Facsimile No.: ________________________________________________________________

Nature of Relationship with Tenderer:

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

Schedule of Prices

Please indicate your package in NZD (exclusive of VAT of 15%) and outline any other expenses you would expect to claim during the course of the contract (until September 2016).

Rate per unit NZD (exclusive of VAT)Overall Contract ValueAssumes a June 2016 start date and October 2016 end date. 2

Additional claimable expenses expected (provide details specific costs)1

TOTAL COST (Excl. VAT)

VAT 15%

TOTAL COST (Incl. VAT)

2 The Tenderer must submit a Methodology as per Appendix B : Tender Specifications Section B detailing the stages of the project and the associated costing for each stage. A separate cost for the contract value and claimable expenses should be provided for each stage and match the Total Cost as per the Schedule of Prices. The Tenderer must also provide details of the claimable expenses to include detailed travel costs and other associated costs.

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

APPENDIX B

TENDER SPECIFICATIONS

Terms of Reference for Contractor to develop a Rarotonga Renewable Energy Implementation Plan 2020 and Beyond

A. About this document

This document specifies the terms of reference to contract in the required technical services for the development of a Rarotonga Renewable Energy Implementation Plan 2020 and beyond.

B. OutcomesThe overarching mission of Te Aponga Uira (TAU) is ‘In partnership with our stakeholders; we will provide a safe, reliable and cost effective energy service that is dominated by clean renewable energy’.

The Cook Islands Renewable Energy Implementation Plan Update (2016) currently in draft builds off the original plan published in 2012 seeking to convert the electricity generation in the Cook Islands to 100% renewable. To assist with providing potential tenderers a background on the existing situation on Rarotonga as well as the issues to be addressed this is included in the Information Package in Appendix F.

Of primary concern for TAU’s management is the reliability of its network. What is paramount during the transition to clean energy is continuing to maintain this level of reliability for Rarotonga based customers.

TAU has undertaken a number of studies on a range of separate technologies including wind, pumped hydro, waste to energy necessary for 100% conversion to renewable energy, as well as possible commercial arrangements. TAU also acknowledges that the technologies market is fast evolving both in terms of price as well as more efficient solutions.

To ensure sustainability and reliability of long term electricity generation and supply on Rarotonga sourced 100% by renewable energy by 2020, Te Aponga is looking to engage the services of a person or company (supplier) to assist in attaining the following outcomes:

1. An expansion to TAU’s existing dynamic technical DIgSILENT model and the development of an associated costing model of Rarotonga’s power system that can be used for reliability and investment decision making by TAU post completion of works

2. Defined optimal technical network configuration for Rarotonga under a 100% RE as well as estimates of the cost of investments required with a mix of solutions including generation, storage for load shifting, storage for stability, a combination of storage and enabling

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

technologies whist maximising existing installed assets over the short, medium and long term (evolving network).

3. Identification of new or evolved value propositions that may arise from the optimal network configuration and solutions that can be offered to TAU existing and new residential and commercial customers including both generation and consumption management mechanisms.

4. Defined operating, maintenance, communication and control management structures for the network as it evolves from its current state to its optimal configuration.

5. Defined Private Sector – TAU ownership configurations for the various technologies and investments, including the associated feed in tariff and tariff structures.

6. Identification of policy, regulative and legislative amendments or gaps that will be required to effectively transition the network and value propositions from its current to its optimal configuration, and provide principles that would underpin its drafting.

7. Improved understanding by all TAU technical staff on central and auxiliary technologies and associated commercial realities required to reach a 100% Renewable Energy penetration level for an island wide generation, distribution and retailing system.

8. A clear programming and staging of investments over a 15 year period from 2016 that enables entry points for engagement by international development partners.

It is expected that the above outcomes will be captured in a Rarotonga Renewable Energy Implementation Plan 2020 and Beyond.

It is expected that the working relationship between the successful tenderer and TAU is a collaborative partnership approach with TAU driving the process and project alignment to the above identified outcomes in order to maximise ownership, knowledge transfer to TAU technical staff and to ensure ease of implementation of the Rarotonga Renewable Energy Implementation Plan 2020. As such the successful tenderer is expected to add to the existing capacity of TAU over the length of the contract to achieve the stated outcomes.

C. OutputsThe successful tenderer will be responsible for producing one output that will facilitate the above outcomes.

Output 1 – Rarotonga Renewable Energy Implementation Plan 2020 and Beyond

This document should be clearly informed by the best information and research available to-date, including the issues and recommendations identified by the Cook Islands Renewable Energy Implementation Plan and its associated Updates.

At a minimum, the Plan should:

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

Identify the optimal configuration of key generating, storage, enabling, distribution, monitoring and control technologies required and recommend a programming of such investments to reach 100% renewable energy sourced electricity by 2020, and further management to 2030.

Identify the estimated costs associated with such investments and forecasted cashflows of the same to 2030

Identify the tariff structures required to encourage the most efficient use of the existing and proposed infrastructure investments within in the Rarotonga power system. Present a Gantt Chart format of the implementation of the Plan over the planning timeframe to 2030 which is expected to include when generation, storage and enabling technologies are to be brought onto the network and the associated policy and investment arrangements. It is noted that technology is evolving and so the Plan must be flexible to incorporate new technologies.

As much as possible present tracking tools of the implementation plan through Gantt Charts

D. Deliverables

No. Deliverables Inputs/tasksDue date

1 A detailed work plan and risk analysis for developing the Plan

Project inception and initial liaison.

Stakeholder mapping and communications

Proposed draft Structure of the Rarotonga Renewable Energy Implementation Plan

June 16

2 Presentation of a wide range of scenarios that may work for Rarotonga reflecting different ways to configure key generating, enabling, distribution, monitoring and control technologies with associated cost estimates in transition from a low, medium then high renewably penetrated network

Dynamic load and generation data collection

Preparation of a network system model

Comprehensive network study

Consideration of current projects to improve network infrastructure by TAU

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

No. Deliverables Inputs/tasksDue date

3 Presentation and knowledge resource of information for TAU staff and key stakeholders on required technologies and their management

Video, print and all other resources consolidated for access by TAU staff as required

5 Presentation of optimal technology mix, estimated cost, associated customer value propositions, tariff structure and policy reforms required

1-4 above

Including Gnatt Charts

6 Draft of the Rarotonga Renewable Energy Implementation 1-5 above

Including Gnatt Charts

8 Final Rarotonga Renewable Energy Implementation Plan The final document will include feedback on the draft Plan

Oct 2016

Note: Due dates for detailed deliverables will be finalised within the work plan in deliverable 1.

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

E. Methodology

Tenderers are invited to submit their own methodology for the achievement of the outcomes and outputs. This should not exceed 10 pages and is to include in-country visits (if intending to be based outside of the Cook Islands), a participatory and consultative approach, analysis of key documentation.

TAU uses DIgSILENT software to undertake static studies of its power system. TAU technical staff are currently increasing capacity and expanding the data inputs of the current software so it is able to undertake dynamic studies. The modelling progressed through this contract is expected to build on the existing models built through Digsilent software so as to enable TAU to continue to assess and manage its power system over the implementation of the plan.

It is expected that the methodology submitted will also define the stages of the project, as well as the associated timeframes and cost of each stage. It is expected that the methodology include

A separate cost for the contract value and the claimable expenses should be provided for each stage and match the Total Cost as per the Schedule of Prices. The Tenderer must also provide details of the claimable expenses to include detailed travel costs and other associated costs.

A schedule of time spent on Rarotonga at the TAU Main Office by Technical staff of the Tenderer should also be provided for each stage3

A Gantt Chart presenting the stages over the timeframe of the project as well as a gnatt chart identifying the achievement of the outcomes outlined in Section B of this Appendix B.

Identification of software used for power system modelling noting TAU’s preference for DIgSLENT

The supplier representatives will be hosted by Te Aponga Uira at its Main Office in Tutakimoa while on Rarotonga. TAU will provide workspace, telephone and internet access in office.4

All existing documentation will be made available to the successful tenderer during the tenure of the assignment by Te Aponga Uira.

All databases, models, working papers and documents produced during the course of the work will become the property of TAU in the file type as specified by TAU. This is to ensure TAU technical staff and utilise these files on an ongoing basis and through review of the Implementation Plan to 2030.

F. Expected Competencies

3 Note Non-Price Tender Evaluation Criteria gives preference to those Tenderers who intend to have Technical staff based at the TAU main office over the length of the contact in an effort to optimise the collaborative approach intended, to ensure TAU is able to actively manage the progress of the works and to optimise ownership and knowledge transfer to TAU technical staff.4 In relation to travel expenses to the Cook Islands by the supplier and its representatives, all flights, accommodation and transport bookings, payments and arrangements will be organised and paid for directly by TAU, the costs of which should also be included in the claimable expenses section of the Schedule of Pricing in Appendix A.

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

It is expected that the supplier will have the following key competencies:

1. Comprehensive understanding of the energy sector and in particular the technicalities of the generation and supply of electricity;

2. Competency in economic and/or commercial analysis;

3. Proven familiarity with the generation and supply of electricity to small island communities, including the appreciation of the logistical challenges of working in isolated communities.

4. Completion of similar work for existing networks that, as a result, have since successfully transitioned from low to medium/high penetration levels of renewably sourced generation and enabling technologies

5. Own and operate relevant analysis software for power systems that will be used for producing the required outcomes and deliverables.

G. Publicly available documentation The Cook Islands Renewable Energy Chart (CIREC) and Implementation Plan, noting that the

CIREC is currently under review;http://www.mfem.gov.ck/development/development-programmes/57-development/development-programmes/447-cook-islands-renewable-energy-chart-planning

Economic and Social Statistics including Electricity generation data;http://www.mfem.gov.ck/statistics

Other internationally agency documents https://www.irena.org/DocumentDownloads/Publications/Cook-Islands.pdf

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

APPENDIX C

EVALUATION CRITERIA

The Evaluation Criteria has been drawn from the Statement of Requirements, Standard Conditions and Special Conditions as articulated in the RFT. In accordance with clause 24.5 of the Policy, Tenders that did not meet the Standard Conditions are deemed non-compliant.

Standard Conditions

Criterion CompliesYes or No

1. Tender is completed in the format contained in Appendix A of the RFT.

2. Tenders must be deposited in the tender box by the closing time as specified in Clause 3 of this RFT.

3. Proposal and related documentation must be in the English language.

4. Tenderers must tender to provide the whole of the services specified in the RFT.

5. Tenders must be presented in hard copy or soft copy format as specified in the RFT.

6. All prices must be in NZ dollars and cover all costs associated with producing the outcomes intended

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

Risk

The Evaluation Committee will conduct a Risk Assessment for each Tender submitted. This will identify the most significant risks presented by the Tender and consider the likelihood of the risk occurring; the consequence of that risk; and a risk mitigation strategy. In conclusion, the mitigated risk will be determined to form an overall measure of the risk represented by each Tender.

The Risk Mitigation Strategy may include the inclusion of specific clauses in the executed contract. Therefore, a Tender considered to be High Risk might still be selected subject to the Tenderer’s willingness to accept the proposed contract amendments.

Special Conditions

A Weighted Criteria methodology will apply to the evaluation of the Special Conditions of this RFT. The assignment of weightings is based on the following principles:

The Special Conditions that reflect the critical elements of the project will be assigned a weight Weightings will reflect the relative importance of each criterion Scores will be based on the information provided in the submitted Tender

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Criteria Weight%

Non-Price Criteria1. Locally established company and locally supplied resources (labour and/or materials)

5

2. Compliance with contract terms 53. Software compatibility 104. Knowledge of the energy sector in the Pacific and/or global markets, of global investment trends and understanding of the Pacific context Past

10

5. Relevant technical skills and resources 156. Performance in completing similar works for small electricity networks who have since achieved a medium to high level of renewable energy generation similar to those resources available in the Cook Islands

15

7. Availability of technical staff to be based on Rarotonga for the length of the project to support knowledge transfer and enable TAU oversight

15

Total Non-Price Elements 75Price 25TOTAL WEIGHTING 100

Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

APPENDIX D

TERMS AND CONDITIONS FOR THE ENGAGEMENT OF A CONSULTANT

Te Aponga Uira O Tumu-Te-Varovaro ( “TAU”) agrees to engage the Consultant and the Consultant agrees to provide the Services described in the Schedule on the following conditions:

1. Application: These terms and conditions supersede any contrary provisions in any previous agreements between parties, written or otherwise. No right under these terms shall be deemed to be waived except by notice in writing by each party. In the event that any one or more of the provisions contained in these conditions are declared invalid by order, decree or judgment of any Court of competent jurisdiction, these conditions are to be read as if such provision had not been inserted.

2. Services: The Consultant shall perform the Services as described in the attached Schedule in accordance with any requirements set out in these terms and conditions and/or in the Schedule. The time of performance of the Services is a fundamental element of these terms and conditions. The Consultant shall notify TAU in writing immediately when the Consultant becomes aware there may be a delay in the delivery of the Services. TAU is entitled to cancel these terms and conditions or change its specification (without incurring additional charges) if the Services are not supplied on supply dates/times as specified in the Schedule. Where the Consultant has the benefit of any warranties or covenants from a third party in respect of the Services, the Consultant shall disclose and assign the benefit of the warranties and/or covenants to TAU.

3. Skill: The Consultant shall use the highest reasonable standard of skill, care and quality and employ techniques, methods, procedures and materials of a high quality and standard in accordance with best professional practice in rendering the Services. The Consultant will comply with all relevant (a) Cook Island standards and international standards (if not in conflict) (both general and industry-specific); (b) statutes; (c) regulations; (d) by-laws; (e) ordinances; and (f) Government policies, applicable in respect of the supply of the Services.

4. Independent Judgment: Where the Services require the Consultant to certify, decide or use discretion under a contract between TAU and a third party, the Consultant must act independently, and with professional skill and judgment, and according to the terms of the contract between TAU and the third party.

5. Delay: If at any time the Consultant’s performance falls behind the programme set out in the Schedule then the Consultant shall notify TAU and, where the delays are due to matters within the control of the Consultant, shall take all practicable steps to remedy such delay.

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6. Variations: TAU may order variations to the Services in writing or may request the Consultant to submit proposals for variation to the Services. Where the Consultant considers a direction from TAU or any other circumstance is or may give rise to a variation the Consultant shall notify TAU as soon as practicable.

7. Payment: TAU shall pay the Consultant for Services the fees and expenses at the times and in the manner set out in the Schedule. The prices stated in the Schedule are fixed unless there is a written agreement stipulating the price may be varied, when it may be varied and how the price is to be determined. The price is exclusive of VAT. The Consultant is not entitled to claim expenses, surcharges, margins or disbursements except if otherwise agreed in advance and in writing by TAU.

8. Liability: Where the Consultant breaches these terms and conditions, the Consultant is liable to TAU for reasonably foreseeable claims, damages, liabilities, losses or expenses caused directly by the breach. The Consultant shall not be entitled to anticipatory profits or to special (including multiple or punitive), incidental or consequential damages or losses.

9. Contribution to Loss: If either Party is found liable to the other (whether in contract, tort or otherwise), and the claiming Party and/or a Third Party has contributed to the loss or damage, the liable Party shall only be liable to the proportional extent of its own contribution.

10. Indemnity: The Consultant indemnifies TAU in respect of all costs (including legal costs), claims, liabilities, losses, damage and expenses suffered or incurred by TAU and any other person claiming through TAU as a direct or indirect consequence of any unlawful, negligent, tortious, criminal, reckless or dishonest errors, acts or omission of the Consultant in the performance of its obligations under these terms and conditions. This indemnity survives the termination of these terms and conditions.

11. Insurance: The Consultant shall take out and maintain at its own cost, at all times during the continuance of these terms and conditions, such insurances as specified in the Schedule. All such insurance shall be on such terms and with such insurers as TAU may reasonably require. The Consultant shall, if requested by TAU, provide TAU with written evidence that all insurances are in force and shall produce, whenever reasonably required by TAU, the relevant policies and evidence of payment of the current premiums. If the Consultant fails to provide such evidence TAU may, after notifying the Consultant in writing, arrange or keep in force that insurance and may, for the purpose of doing so, pay the relevant premiums and deduct a corresponding amount from any moneys payable by Government to the Consultant under these terms and conditions.

12. Intellectual Property: “Intellectual Property” includes copyright, designs, drawings, specifications, reports, data and documentation. All Intellectual Property arising from the provision of the Services (“New IP”) is owned by TAU and the Consultant shall co-operate with TAU (including by signing documents) to help TAU protect its

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rights in the New IP. To the extent that New IP incorporates or requires Intellectual Property arising outside of the provision of the Services (“Pre-existing IP”), the Consultant licences, or shall procure the licence to the Pre-existing IP for TAU on a perpetual, royalty-free basis. The Consultant warrants and represents to TAU that the New IP and the Pre-existing IP will not infringe the Intellectual Property rights of any third party.

13. Termination: TAU may, at its convenience, terminate all or part of the Services by 10 days’ written notice to the Consultant who shall immediately make arrangements to stop the Services and minimise further expenditure. The Consultant may, in the event TAU is in material default, terminate these terms and conditions by 10 days’ written notice to TAU. Any suspension or termination shall not prejudice or affect the accrued rights or claims and liabilities of the parties. Further, TAU may terminate these terms and conditions immediately where, in the opinion of TAU, there has been serious misconduct by the Consultant. Serious misconduct includes, but is not limited to: bringing TAU into disrepute, where the Consultant, in the judgment of TAU, has engaged in corrupt or fraudulent practices in competing for or executing these terms and conditions, theft of property, offensive behaviour towards Government personnel, members of the public or contractors.

14. Confidentiality: The Consultant must keep confidential all information provided by TAU in relation to these terms and conditions and the provisions of the Services and not disclose the same without the written consent of TAU.

15. Public Statements: The Consultant must not make any public statements about the Services or these terms and conditions without TAU’s written approval.

16. General Warranties: The Consultant represents, warrants and undertakes that: a. it has full power, capacity and authority to execute, deliver and perform its

obligations under these terms and conditions; b. it has and will continue to have, all necessary consents, permissions, licences

and rights to enter into and perform its obligations under these terms and conditions;

c. there are no existing agreements, undertakings or arrangements which prevent it from entering into these terms and conditions or which would impede the performance of its obligations under these terms and conditions;

d. it has not offered any inducement in connection with the entering into or negotiation of these terms and conditions; and

e. It has not (nor is any of its representative directors or employees) a party to any litigation, proceedings or disputes which could adversely affect its ability to perform its obligations under these terms and conditions.

17. Conflict: The Consultant confirms it has no knowledge of any conflict of interest in providing the Services. If any conflict arises or has the potential to arise during the supply of the Services, the Consultant shall immediately inform TAU in writing and TAU will decide on the appropriate steps to be followed in such event, which may

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

include the right of TAU to terminate these terms and conditions with immediate effect.

18. Key Personnel The Key Personnel for the provision of the Services are as listed in the Schedule. Any change to the Key Personnel requires the written consent of the Te Aponga Uira.

19. Assignment: The Consultant must not assign, transfer or subcontract all or part of its rights or obligations under these terms and conditions without the prior written consent of TAU’s, such consent to be provided at TAU’s absolute discretion.

20. Law: These terms and conditions are governed by the laws of the Cook Islands. The parties agree to submit to the exclusive jurisdiction of the High Court of the Cook Islands.

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

APPENDIX E

SCHEDULE

Government: Her Majesty the Queen acting by and through Te Aponga Uira O Tumu Te Varovaro (“TAU”)

Signed:_____________________________

Name:

Position:

Date:

Consultant: [Insert Consultant details]

Signed:_____________________________

Name:

Position:

Date: ________________________________

Project: Rarotonga Renewable Energy Implementation Plan to 2020 and Beyond

Location: TAU Head Office, Rarotonga, Cook Islands

Scope and Nature of the Services: The supplier will undertake a consultative and technical process to produce the following outcomes for Te Aponga Uira:

1. An expansion to TAU’s existing dynamic technical DigSilent model and the development of an associated costing model of Rarotonga’s power system that can be used for reliability and investment decision making by TAU post completion of works.

2. Defined optimal technical network configuration for Rarotonga under a 100% Renewable Energy penetration level as well as estimates of the cost of investments required with a mix of generation, storage and enabling technologies whist maximising existing installed assets over the short, medium and long term (evolving network).

3. Identification of new or evolved value propositions that may arise from the optimal network configuration and solutions that can be offered to TAU existing and new residential and commercial customers including both generation and consumption management mechanisms.

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

4. Defined operating, maintenance, communication and control management structures for the network as it evolves from its current state to its optimal configuration.

5. Defined Private Sector – TAU ownership configurations for the various technologies and investments, including the associated feed in tariff and tariff structures.

6. Identification of policy, regulative and legislative amendments or gaps that will be required to effectively transition the network and value propositions from its current to its optimal configuration, and provide principles that would underpin its drafting.

7. Improved understanding by all TAU technical staff on central and auxiliary technologies and associated commercial realities required to reach a 100% Renewable Energy penetration level for an island wide generation, distribution and retailing system.

8. A clear programming and staging of investments over a 15 year period from 2016 that enables entry points for engagement by international development partners.

It is expected that the working relationship between the successful tenderer and TAU is a collaborative partnership approach with TAU driving the process and project alignment to the above identified outcomes in order to maximise ownership, knowledge transfer to TAU technical staff and to ensure ease of implementation of the Rarotonga Renewable Energy Implementation Plan 2020. As such the successful tenderer is expected to add to the existing capacity of TAU over the length of the contract to achieve the stated outcomes.

The key outputs to be produced at minimum is as follows:

Output 1 – Rarotonga Renewable Energy Implementation Plan 2020 and Beyond

At a minimum, the Plan should:

Identify the optimal configuration of key generating, storage, enabling, distribution, monitoring and control technologies required and recommend a programming of such investments to reach 100% renewable energy sourced electricity by 2020, and further management to 2030.

Identify the estimated costs associated with such investments and forecasted cashflows of the same to 2030

Identify the tariff structures required to encourage the most efficient use of the existing and proposed infrastructure investments within in the Rarotonga power system. Present a Gantt Chart format of the implementation of the Plan over the planning timeframe to 2030 which is expected to include when generation, storage and enabling technologies are to be brought onto the network and the associated

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policy and investment arrangements. It is noted that technology is evolving and so the Plan must be flexible to incorporate new technologies.

As much as possible present tracking tools of the implementation plan through Gantt Charts

The key deliverables to be produced at minimum is as follows:

No.

Deliverables Inputs/tasks Due date

1 A detailed work plan and risk analysis for developing the Plan

Project inception and initial liaison.

Stakeholder mapping and communications

Proposed draft Structure of the Rarotonga Renewable Energy Implementation Plan

June 2016

2 Presentation of a wide range of scenarios that may work for Rarotonga reflecting different ways to configure key generating, enabling, distribution, monitoring and control technologies with associated cost estimates in transition from a low, medium then high renewably penetrated network

Dynamic load and generation data collection

Preparation of a network system model

Comprehensive network study

Consideration of current projects to improve network infrastructure by TAU

3 Presentation and knowledge resource of information for TAU staff and key stakeholders on required technologies and their management

Video, print and all other resources consolidated for access by TAU staff as required

4 Presentation of optimal technology mix, estimated cost, associated customer value propositions, tariff structure and policy reforms required

1-4 above

Including Gantt Charts

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

No.

Deliverables Inputs/tasks Due date

5 Draft of the Rarotonga Renewable Energy Implementation

1-5 above

Including Gantt Charts

6 Final Rarotonga Renewable Energy Implementation Plan

The final document will include feedback on the draft Plan

Oct 2016

Note: Due dates for detailed deliverables will be finalised within the work plan in deliverable 1.

Fees and Timing of Payments:

Payments will be made in New Zealand Dollars and will be made progressively over the course of the project based on the completion of each stage of the project outlined in the methodology.

With regard to claimable expenses in relation to travel to the Cook Islands by the supplier and its representatives, all flights, accommodation and transport bookings, payments and arrangements will be organised and paid for directly by TAU in accordance with the workprogram agreed upon.

All payments are to be signed off by the Chief Executive Officer.

Insurance:

The Consultant (i) shall take out and maintain at its own cost but must include professional liability, personal liability, medical, dental and travel insurance, and (ii) at TAUs request, shall provide evidence showing that such insurance has been taken out and maintained and that the current premiums therefore have been paid. The Consultant shall ensure that such insurance is in place prior to commencing the Services.

Contact Person:

TAU Contact: Dallas Young, Commercial Manager, Te Aponga Uira

Supplier Contact: To Be Confirmed

Key Personnel:

The Key Personnel and their respective focus areas for the provision of the Services of this contract are listed as follows:

Full Name Position Focus Area

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

Full Name Position Focus Area

Special Conditions:

1. The Consultant is responsible for all their tax liabilities arising out of the agreement.2. The Consultant is responsible for all their foreign enterprise approvals and fees to

provide their service in the Cook Islands.3. For the avoidance of doubt the Consultant is not an employee of TAU.

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APPENDIX F

INFORMATION BACKGROUND ON RAROTONGA ELECTRICITY NETWORK FOR TENDERERS

Te Aponga Uira (TAU) is a government owned utility primarily responsible for generation, distribution and retailing of electricity on Rarotonga. The operation of TAU is governed by the TAU Act 1991 (amended in 1999) and the Cook Islands Investment Corporation (CIIC) Act 1998, which establishes the utility as a commercially oriented Government Business Enterprise that reliably and economically provides electricity to the Rarotonga community.

GENERATION

Diesel generators dominate electricity generation on Rarotonga however the contribution from distributed renewable generation has been steadily increasing. Electricity generated per month by source, sent out to the distribution network, is shown in Figure 1.

Figure 1: Electricity Generation – 2015

In 2015, Diesel generated electricity sent out to the distribution network was recorded at 24.2 GWh. For the same period, distributed renewable generation was estimated to be around 3.4 GWh.

Distributed renewable generation

To encourage renewable energy development from the private sector, TAU introduced a Net-metering Policy in November 2009. The initial net-meter based policy has evolved over the past seven years and now includes Gross-metering and Independent Power Producer connection categories.

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By the end of February 2016 there were a total 3.1MWp of distributed grid connected solar PV generators scattered around the island, consisting of a mix of TAU owned and private owned facilities. The composition of each connection category is shown in Table Table 1 and Figure 2.

Table 1: Distributed renewable generation connections – 29th February 2016

Connection categoryNumber of

connections

Total capacity

(kWp) Systems size range

Net-meter 936 932 1kWp to 145kWp

Gross-meter 55 894 3kWp to 24kWp

Independent Power Producer 4 254 48kWp to 105kWp

TAU 4 1,048 10kWp to 960kWp

Totals 999 3,128

Figure 2: Composition distributed renewable generation on TAU grid – 29th February 2016

A TAU commissioned grid stability study, completed in 2012, puts a limit of unconstrained distributed renewable energy generation on the grid at 3.3MW5. Based on current rates of installation, as shown in Figure 3, the 3.3 MW limit will be reached within the first half of 2016.

5 KEMA / DNV, 4 December 2012. Rarotonga, Cook Islands, Distributed Renewable Generation Study Integrating PV Solar and Wind generation with the TEC electric system (for Te Aponga Uira O Tumu-Te-Varovaro)

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Figure 3: Cumulative distributed renewable generation connected to the TAU network – 2015

Diesel generation

The main source of electricity for Rarotonga is generated and supplied from the Avatiu Valley Power Station. This centralised power station performs the role of frequency and voltage control.

The generating capacity of the station is provided by eight working diesel generators with a total installed nameplate capacity of 11.1 MWp. These aged generators, range in size from 0.6 MWp to 2.7 MWp. Due to ongoing de-rating of engines the actual available capacity is currently 8.8 MWp.

Table 2: Existing diesel generators on Rarotonga

No. Make and Model Year Installed Rated MW De-rated MW

1 Duvant Crepelle 12V26N 1991 2.0 1.5

2 Duvant Crepelle 12V26N 1991 2.0 1.5

3 Mirrlees Blackstone MB 275-8 1989 1.6 1.4

4 Lister Blackstone ETSL 1971 0.6 0.5

5 Lister Blackstone ETSL 1985 0.6 0.5

7 MAN B&W L9-27/38 2006 2.7 1.8

HS#2 Cummins KTA 50-G3 2004 0.8 0.8

HS#56 Cummins KTA 50-G3 2015 0.8 0.8

Total 11.1 8.8

TAU will have commissioned before the end of May 2016 a new power house adjacent to the existing power station, inclusive of five new Cummins QSK60-G4 1600kW high-speed diesel generators. Generators 1 and 2 in the existing power station will be decommissioned first, with the remaining older engines following as appropriate. Generators 3, 4, 5 and 7 will maintain nameplate capacity of

6 Hired Sets

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Te Aponga Uira O Tumu-Te-Varovaro Request for Tender No. 151641

5.5 MWp, with the additional five new high speed generators providing 8.0 MWp, increasing total combined station capacity to 13.5 MWp.

To ensure the existing diesel station has the flexibility and reliability to complement the transition to a power supply from 100 % renewable energy, TAU has upgraded the control systems at the Avatiu Valley Power Station and has introduced a SCADA system.

Control Systems Upgrade

The aim of the control upgrade was to provide automated controls for power station Voltage and Frequency control. This involved the replacement of AVRs and Governors with modern electronic equipment, establishing overall control of generators, load sharing between generators and island feeder controls. This project was completed in 2015.

SCADA

SCADA was introduced to the Avatiu Valley Power Station to provide better monitoring and control of generators and feeders, as well as provide for distributed renewable generation.

Stage one of the SCADA project, completed in 2015, enabled monitoring and control of the Airport Solar PV, as well as existing equipment at the Avatiu Valley Power Station.

Stage two will interface the new generators, including associated protection relays and ancillary equipment, with the SCADA system. Currently in progress, stage two is scheduled for completion immediately following the commissioning of the new power house.

Stage three of the project will involve interfacing new plant and sites with the TAU SCADA system.

DISTRIBUTION NETWORK

TAU operates and maintains a distribution network comprising approximately 80km of 11kV underground cables and 200km of predominantly overhead low voltage Aerial Bundled Conductor (ABC) conductors.

The HV and LV networks are linked via the 11/0.415 kV distribution transformers with installed nameplate capacity of 14.32 MVA.

There are 6 feeders servicing the population of Rarotonga as illustrated in the single line diagram in Error: Reference source not found4. Details on the load carried on each feeder are included in Figure5 and Table 3.

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Figure 4: Single line diagram of the Rarotonga HV distribution network

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Figure 5: Variation in Electricity Demand by Feeder - 20157

Table 3 Feeder Characteristics

Feeder Cable length (km)

Measured Peak (kW)

Airport 12.34 456

Sea port 5.591 1212

Avarua city centre 8.141 943

West coast8 13.84 0

Cross line 22.72 1030

East coast 18 1,105

80.632

As is apparent in Figure 5, two feeders (Sea port, and Avarua city centre) experience significant additional daytime loads during weekdays. These feeders supply the main business district of Rarotonga. Other feeders have similar loads on weekdays and weekends, and supply mostly residential and accommodation customers.

7 Generation sent out from the Avatiu Valley Power Station – includes Avatiu Valley Power Station generation (Diesel generation + 54kWp Solar PV), and Airport 960kWp Solar PV Generation.8 The distribution network is temporarily configured to provide a dedicated connection for the Airport Solar PV generation facility to the Avatiu Valley power station.

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Distributed renewable generators are scattered throughout the distribution network and contributes to overall generation. Table 4 shows the capacity of distributed generation connected to each feeder.

Table 4: Distributed renewable generation capacity (kWp, DC) by Feeder – 29th February 2016

Feeder Connections NM GM IPP TAU Total

Airport 67 30 97

Avarua City 97 100 34 231

Cross Line 187 210 204 601

East Coast 196 252 50 498

Seaport 384 302 686

West Coast 960 960

Avatiu Valley Power Station9 2 54 56

Totals 932 894 2541,04

8 3,128

Load Characteristics

TAU serves a customer base of around 4,300 customers.

The peak electricity demand is estimated to be around 4.8 MW, with the highest ever peak recorded at 5.1 MW in February 2008. Electricity demand is estimated on the basis of generation data. Since 2009, generation includes both diesel at the Avatiu Valley Power Station, and increasing generation from distributed renewable energy generation.

Daily and seasonal profiles of power sent out to distribution feeders, from the Avatiu Valley power station, are shown in Figure 6 and Figure 7. As distributed generation penetration increases, a reduction in the average daytime power sent out is observed at the Avatiu Valley Power Station.

Distributed Solar PV generation on the network has increased from 1,958kWp at the start of January 2015, to 2,936 at the end of December 2015.

9 Avatiu Valley Power Station LV supply

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Figure 6: Daily variation in electricity demand

Figure 7: Seasonal generation profile

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TARIFFS

The current tariff structure for Rarotonga is set out in Table .

Table 4: Rarotonga tariffs (1 July, 2015)10

Rate ($) Unit

Commercial 0.77 kWh

Demand 0.68 kW

Service charge 5.00 Month

Domestic - 0 to 60 0.53 kWh

Domestic - 61 to 300 0.77 kWh

Domestic - Above 300 0.79 kWh

Net metered FiT Credit unit for unit kWh

Gross FiT (and IPP rate) 0.45 kWh

The current electricity tariffs for Rarotonga are cost recovery. There is no time of use tariff. Historically, the tariffs have been adjusted as required to accommodate changing fuel prices that also move with exchange rates as diesel is purchased in USD. The tariffs adjustments need to be maintained to ensure sufficient cost recovery and financial sustainability of the planned investment projects.

OTHER

Energy Storage

Pumped hydroelectric Storage

The ultimate power system design envisaged by TAU includes energy storage in the form of a pumped hydropower system. This is a proven technology that suits the geography of Rarotonga including operation in a tropical climate, and has been identified as the most cost effective form of energy storage over the long term 11.

A TAU Pump hydro pre-feasibility study conducted in 2015 indicated that a single (or multiple) small pumped storage scheme is feasible for Rarotonga. TAU plans to undertake topographic surveys and geological investigations to further develop the Pump Hydro concept.

Battery Energy Storage System (BESS)

Battery Energy Storage System (BESS) projects are currently being scoped and planned for Rarotonga to enable continued growth in distributed renewable generation.

10 There are some additional tariffs (e.g. dual rate) specific to particular customers.11 Advantage Business, August 2015. A Commercial Analysis of Renewable Energy Technology Options (for Te Aponga Uira O Tumu-Te-Varovaro)

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Energy Efficiency

Opportunities for energy efficiency for both TAU and its customers are continuously explored. On the customer side, areas targeted recently include residential lighting, government ministry offices lighting, and residential refrigeration. There is also a continuous effort by TAU to reduce technical losses in both its generation and distribution systems.

Power Systems Software

TAU uses DIgSILENT PowerFactory to carry out a number of power system studies for planning purposes. Existing TAU models are continuously improved and staff capacity developed so as to further TAU in-house capability in better understanding its networks.

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