According to a recent report by International Institute for Environment and Development (IIED), an energy delivery model is the combination of the technology, finance, management activities, policy support, legal arrangements and relationship types required to supply energy to a group of people or end users (in this context, to groups of people living in poverty). The design of such models must consider the broader environment in which the service is to be provided, or ‘context for intervention’, which includes the ‘enabling environment’, i.e. the institutional structures and public policies, the existing transport and communications infrastructure, the local capacities and the wider socio-cultural context in which the end users live.

Over the years, many energy delivery models have emerged and several factors contributing to the technology systems have changed. For example:
1. Technology advancements- costs and supply chain, and variations in generation
2. Environmental degradation and loss of natural resources
3. Demand for energy and its criticality for human well-being and development
4. Policy environment

Further (as described briefly in the video here-, for energy delivery via grid), each energy model has its own supply chain, entities involved in the supply chain, their structures and policy environment contributing to their viability and hence the quality of energy being deployed. It is also important to understand and map true costs of the delivery model- including subsidies, financial terms which are being borne by some part of the system.

Additionally, in most of the papers on energy delivery models, there has been a focus on understanding the supply side of the model (whether it be from environment perspective or economic perspective), however the demand side is not studied in the equation. How do the different model and technology systems rate in terms of availability, reliability, affordability and resilience.

Objectives of the Study

The study will analyse and map the energy system, true costs and viability of transactions between the systemic players. The study will build out a model, understand its functioning and true costs in the following scenarios from both supply and demand side:

1. Comparing Standalone, Grid and Micro-Grid in the case where grid Infrastructure is already present, and:
Scenario 1: Grid is reliable
Scenario 2: Grid is not reliable
Scenario 3: Grid is not there- cost of extending the grid and opex for maintaining the grid

2. Grid Infrastructure is not present- power generation investment required

The models should also bring about energy user priorities and impact of contingencies such as those given below, on the delivery efficiency and economics of each system:

  • Impacts of infrastructure extensions/breakdowns
  • Impact of Weather extremes eg. lesser number of sunny days
  • Impact of grid failure and unreliability of supply
  • Dynamics of costs over time impacting LCOE
  • Variations in demand and peak demand profiles

Work Components

It is suggested that the key milestones and deliverables, timelines and related activities are mapped in 2 phases, as described below:

Component 1: Co-Finalizing the scope of work with SELCO Foundation

It is suggested that the entity partnering in this study accounts for time to finalise the scope and boundaries of this study in partnership with SELCO Foundation. The aim of this exchange between the two entities would be to:

  • Further define purpose, objectives and the questions the model should address
  • Identify reference modes i.e. what is the dynamic nature of the system/problem
  • Develop sub system diagram, dynamic hypothesis and boundary conditions

In order to achieve this, the partnering entity would conduct workshops with SELCO Foundation and certain other sector experts (mutually agreed upon) and conduct secondary research. The output of this would be a detailed study methodology and identification of a framework (if any) to be used for the study.

Component 2: Model Development

This part of the engagement would focus on developing and studying system models for different Energy Delivery models or RE solutions- grid, microgrid and decentralised standalone systems. The aim would be to develop a generic model, and use ground understanding to develop different ground realities. The final product should lay out the pros and cons of each model, and also inform the user/reader of the model on the context in which the viability of one model differs from the other.

This steps broadly include:

  • Primary Research through field visits, discussions with experts on three key energy delivery models (grid, micro-grid and decentralised standalone systems). It is to be noted that SELCO Foundation will support in getting relevant stakeholders to join these discussions and arrange for relevant field visits
  • Development of First-Cut systems models
  • Sharing draft model for feedback
  • Model testing and finalisation, based on primary information from specific cases identified

The key output of this exercise would be:
1. Simulation models for Energy systems developed
2. Report on analysis of the three models- key context defining adoption and viability of the same

Selection Criteria:

Note: Interested entities are requested to send a proposal, no longer than 5 pages which briefly outlines the following:

  • A brief outline of the methodology responding to this ToR, including timelines and budget
  • A brief background of the individuals who will be involved in the study
  • Relevant Studies conducted by the applying entity for reference

SELCO Foundation will have a follow up call with shortlisted candidates to discuss their approach and experience more, in order to take the proposal forward.

The applying entity should meet the following criteria for it to be eligible for the defined scope of work:

  • A minimum of 3 year experience in applying systems thinking
  • Demonstrate prior experience of applying systems modelling for evaluating developmental programs and approaches
  • Experts on the team who bring in understanding of the energy sector, particularly the policy frameworks in India will be preferred