TERMS OF REFERENCE (TOR) FOR CONSULTANCY SERVICE TO ASSESS AND GATHER LESSONS LEARNED FROM THE PROJECT “LEVERAGING PUBLIC-PRIVATE ASSETS FOR IMPROVED ENERGY SERVICES DELIVERY IN SOMALIA: SOLAR ENERGY SUPPLY IN LUUQ

TERMS OF REFERENCE (TOR) FOR CONSULTANCY SERVICE TO ASSESS AND GATHER LESSONS LEARNED FROM THE PROJECT “LEVERAGING PUBLIC-PRIVATE ASSETS FOR IMPROVED ENERGY SERVICES DELIVERY IN SOMALIA: SOLAR ENERGY SUPPLY IN LUUQ”

2nd March 2025

1.    Background

The Solar Hybridization Initiative for Energy (SHINE) is a project funded by the Netherlands Enterprise Agency (RVO) and is to be carried out in partnership of Nordic International Support Foundation (NIS) and Tethered Up (TU). The aim of this project is to enhance existing supplies with renewable energy to give small businesses and poorer households access to electricity and allow them to increase their income and quality of life. This shall be achieved by converting one or more conventional grids into solar hybrid grids and lowering their KWh costs by 30%.

NIS implemented a similar solar hybridization project in Luuq, Somalia, between October 2017-July 2019. In Phase One of the SHINE project, NIS and TU will oversee a lessons-learned review of the Luuq solar hybridization project and derive criteria to assess the best target towns for further solar hybridization projects in Somalia. Based on the criteria developed in Phase One, Phase Two of the project would see the retrofitting of diesel-powered grids with solar PV capacity in targeted towns. In sum, the two phases of the project seek to capitalize on the presence of private companies providing electricity in cities around Somalia to leverage their assets and payment systems through strategic support that boosts energy access for larger proportions of the population. It also offers an important platform for cooperation between the government and private companies in the delivery of public services that support social and economic development.

2.    Objective of the assessment and lessoned learned

The objective of the external assessment and collection of lessons learned is to analyse the relevance, effectiveness, efficiency, impact, and sustainability of the “Leveraging public-private assets for improved energy services delivery in Somalia: solar energy supply in Luuq” project.

The assessment will examine the project vis-à-vis its stated objectives, find out the current status of the installed solar PV system, assess investments made by the operator in new transmission lines and generators, and assess the impact the project has had on households including IDPs, SME businesses, and service providers. The assessment will show how the project benefitted them (or not) and what could be done better with regards to customers and getting more people connected. It also includes examining possible improvements to the design and what could be done better, including the usefulness of battery storage.

The findings, conclusions, and recommendations of the evaluation will be used to guide project improvement and decision making, disseminate knowledge and lessons learned, and promote sustainability.

3.    NIS’ project in Luuq

With the aim to restore a climate of order in which the Federal Government of Somalia (FGS) and

Federal Member States (FMS) can function effectively, NIS has been implementing stabilization projects across Somalia. NIS’ activities in Somalia are focused mainly on rapidly implemented high visibility, multiple impact projects. A key aspect of NIS’ approach is the systematic involvement of the authorities – at the local, regional, and federal levels – with the local communities actively involved in the identification, prioritisation, planning and implementation of projects. Each project is designed to maximise the potentials for boosting economic opportunities, security, and normalising/establishing a relationship between the general population (including private sector businesses) and the government.

The presence of private companies providing electricity in cities around Somalia provides an opportunity to leverage their assets and payment systems through strategic support that boosts energy access for larger proportions of the population. It also offers an important platform for cooperation between the government and private companies in the delivery of public services.

Luuq is located in a bend of the Juba River in the southwestern Gedo region of Jubaland State. The town presented a good opportunity to demonstrate how harnessing the market-driven business interests of Somalia’s private sector is likely the quickest path to achieving universal energy access in the country, address lack of access to energy services for poorer communities and support public-private sector cooperation to deliver basic services and contribute to stabilizing the country.

Juba Electric Company (JECo) is the only power utility company in Luuq and was serving nearly a thousand customers before the NIS project. JECo holds a formal bilateral agreement with the local authority. Both parties agreed that JECo would modernize power generation and distribution networks, expand the energy access to the unreached households, and provide affordable electricity to the communities in and around Luuq.

Through the project “Leveraging public-private assets for improved energy services delivery in Somalia: solar energy supply in Luuq”, EnDev contributed the procurement and installation of solar PV synchronized with the JECo existing diesel generation. The installed minigrid system is a fuel-saving solution consisting of solar PV with 102 kWp capacity, four SMA PV inverters of 25 kW each, and coupled with 160 kVA generators to concurrently feed the load during daytime. As a result of the solar production, diesel consumption reduced by about 36,600 liters per year and CO2 emissions decreased by 130.4 tonnes per annum.

In line with the Project Specific Agreement (PSA), in addition to the EnDev contribution, JECo financed the construction of a new power generation site, installation of a medium voltage lines and widely improved power distribution systems to extend the electricity supplies, reduce energy loss and improve safety.

The project aimed at supporting the governments capacity to provide social services and increase their visibility to the communities. As it stands, the dissemination of green energy technology in Somalia through these types of projects is helping to attract private investments in the sector, as well as contributing to new demands/opportunities in the labour market.

3.1. Brief overview of the project objectives

The project’s overall objective was to contribute towards achieving universal energy access in Somalia by demonstrating the viability of the project’s public-private sector partnership model for increasing accessibility to affordable renewable energy in Somalia. The project’s model seeks to lower the cost per kWh in rural areas by retrofitting diesel-based isolated grids with renewable energy technologies.

This increases accessibility to modern energy services which positively impact on beneficiaries’ quality of life and stimulate economic opportunities in the target areas.

3.2. Challenges encountered in the deployment of the system

Luuq district has been a highly insecure context for many years and one of the most dangerous places for international organizations in their deployment of staff and equipment as the town is under the control of Somali government forces but the route to the town is influenced by Al-Shabaab insurgency group. Hence, some solar PV system items were airlifted from Mogadishu to Luuq, while major components like solar panels, mounting structure and generators were transported from Kenya through Mandera – Balad Hawo border line.

3.3 Summary of Luuq Minigrid Status (2019-2025)

2019- 2023 Status: The Luuq minigrid has been operational and functioning well since its completion four years ago.

•       Customer Growth: The number of customers increased from 950 to 1,700, leading to a rise in peak grid demand from 80 kW in 2019 to 170 kWp in 2023 during daylight hours.

•       Solar Contribution: The solar system provides approximately 70 kW, meeting 40% of the grid’s current demand.

•       Energy Cost Reduction: Energy costs dropped from USD 1.2 to less than USD 0.7 per kWh (later adjusted to USD 0.8 to account for fuel price increases).

•       24/7 Energy Supply: The grid now provides continuous power, compared to 15 hours daily before the EnDev intervention.

•       Future Expansion: JECO planned to add a 100 kWp solar PV system, with procurement underway.

•       2023- 2025 Status:

•       Clan Conflict Impact: A six-month clan conflict in Luuq caused a drop in connections from 2,000 to 1,600.

•       System Status: The solar system is currently experiencing technical issues and is non-operational. Deploying a technical expert for troubleshooting is challenging due to the ongoing conflict. However, JECo is exploring alternative options to resolve the problem

•       Revised Energy Costs: To address rising fuel prices and confilict impact, energy costs have been restructured into four consumer categories:

0-10 kWh: $0.9/kWh

11-20 kWh: $0.8/kWh

21-40 kWh: $0.7/kWh

41-100 kWh: $0.6/kWh

Above 100 kWh: $0.5/kWh

•       100 kWp solar PV Solar system Expansion Project Delay: The planned installation of 100 kWp solar PV system has been delayed. The assessment should also focus and discuss with JECo management on the technical challenges that coused the delay of the project implementaion.

4.    Deliverables

The required outputs of this assignment will be as follows:

1.       Inception report, including

•   Methodological approach that the consultant will employ.

•   Data collection tools.

•   Detailed work plan with clear timelines (including researchers’ level of efforts, sequencing of activities and data collection.

•   Budget/ cost of the assignment.

•   Report format. NIS works continuously to ensure that all reports are direct, clear, and concise. The same standards are expected of the external final evaluation report.

2.       Presentation of the key findings and recommendations of the assessment to NIS Somalia country office prior to submitting a draft assessment report for review, comments, discussion, and final consensus building.

3.       Final scoping assessment report detailing public-private partnership for improved energy services delivery in Somalia and related activities.

5.    Timeline

The engagement of the consulting firm/ individual consultants for the scoping exercise is expected to be for a period of 8 weeks all-inclusive effective from signing the contract by the parties for the development of the work plan, methodology, tools, checklist/guidelines, analysis, and submission of the final report.

6.    Supervision and implementation arrangements

The consulting firms/individual consultants will work independently but maintain constant communication with NIS’s senior management & Chief Electrical Engineer for any clarifications.

The lead consultant must demonstrate the following qualifications:

•   Bachelor’s degree in electrical engineering or master’s degree in Renewable and Electrical Energy Systems, or a related field.

•   At least 8 years of experience in the design and implementation of Solar PV-based interventions and analysis.

•   Minimum of 5 years’ experience working energy sector in conflict-post-conflict setting.

•   Ability to travel across the country and facilitate all logistical arrangements for field staff and organize actual fieldwork using locally recruited field assistants.

•   Proven experience in conducting energy audits, data analysis, and dissemination.

•   Excellent report writing and presentation skills.

All interested contractors/suppliers are requested to send electronically all the above support documents/requirements to NIS Foundation by 15th March 2025 before 11:59PM (Local time) Saturday mid-night through this email: procurement.somalia@nis-foundation.org

The subject of your email should be named as per advertisement title “CONSULTANCY SERVICE TO ASSESS AND GATHER LESSONS LEARNED FROM THE PROJECT “LEVERAGING PUBLIC-PRIVATE ASSETS FOR IMPROVED ENERGY SERVICES DELIVERY IN SOMALIA: SOLAR ENERGY SUPPLY IN LUUQ”.

Any enquiries or questions may be addressed to NIS Foundation through the abovementioned email.

OFFERS WILL BE REJECTED IF ANY ILLEGAL OR CORRUPT PRACTISES HAVE TAKEN PLACE IN CONNECTION WITH THE AWARD.

Note: The consultant partner will be responsible for their own security, transportation, communications, accommodation, and insurance arrangements throughout the assessment period

Note: NIS promotes equal opportunities for all and welcomes applications from all sections and members of society, regardless of their age, gender, group membership, political and/or clan affiliation. Consultant firms/ individuals that represent and/ or are owned by women are encouraged to apply.”