RFP No.SOL-386-11-000002.pdf

U.S. Agency for International Development American Embassy Chanakyapuri New Delhi 110 021

Tel: 91-11-24198000 Fax: 91-11-24198612 www.usaid.gov/in

Issuance Date: September 13, 2011 Deadline for Questions September 23, 2011 1000 hrs. New Delhi time Deadline for Receipt of Proposal October 21, 2011, 1000 hrs. New Delhi time

Subject: Request for Proposal No. SOL-386-11-000002, PARTNERSHIP TO ADVANCE CLEAN ENERGY- DEPLOYMENT (PACE-D)

Dear Prospective Offerors:

The United States Government, represented by the U.S. Agency for International Development (USAID), is seeking proposals from qualified organizations interested in providing the services as described in the attached solicitation. This is a full and open competition, under which any type of organization (large or small commercial [for profit] firms, educational institutions, and non-profit organizations) is eligible to compete. In support of the Agency’s interest in expanding the number and sustainability of development partners, USAID encourages proposals from potential new partners.

This procurement is being conducted through full and open competition for which the procedures set forth in FAR Part 15 shall apply.

USAID plans to award a Cost Plus Fixed-Fee- completion type contract with a total estimated cost between $21-$24 million over a period of five (5) years, subject to availability of funds. The purpose of providing an estimated range for the contract is to help Offerors develop their proposals and does not mean that Offerors should not attempt to provide the lowest possible cost commensurate with their technical approach. Cost will be evaluated as part of a best value determination for contract award, including cost effective approaches to achieving the results. Offerors must demonstrate that they believe the costs proposed are realistic and reasonable to attain the intended results.

USAID encourages the participation of small business concerns, small disadvantaged business concerns and women-owned small business concerns in this activity as the prime contractor or as subcontractors.

This solicitation in no way obligates USAID to award a contract, nor does it commit USAID to pay any cost incurred in the preparation and submission of the proposal. Furthermore, the Government reserves the right to reject any and all offers, if such action is considered to be in the best interest of the Government.

The RFP and subsequent amendments can be downloaded from the Federal Business Opportunities (“FBO”) web site https://www.fbo.gov/. It is the responsibility of the recipient of this solicitation document to ensure that it has been received from the INTERNET in its entirety and USAID bears no responsibility for data errors from transmission or conversion processes.

If substantive questions are received which affect the response to the solicitation, or if changes are made to the closing date and time, as well as other aspects of the RFP, this solicitation will be amended. It is the Offeror’s responsibility to check the FedBizOpps site periodically for official updates and amendments to the solicitation.

An Interested Vendor List is not included in this solicitation. Offerors can register and use the Interested Vendor List (IVL) on the FedBizOpps page, so that firms can contact one another for consideration of teaming arrangements and/or small business subcontracting opportunities in response to this solicitation.

The details associated with the submission requirements are outlined under section L of this solicitation.

Late proposals will be handled in accordance with FAR 15.208.

Questions and Answers: The deadline for receiving questions is the date noted above. Questions may be submitted to Arun Sehgal at indiarco@usaid.gov and copy to Mr. Braden Enroth at benroth@usaid.gov

We extend our best wishes to all for a successful competition, and certainly want to thank you for your interest in USAID/India program activities.

Sincerely, sd/-

Braden W. Enroth Regional Contracting Officer

USAID/INDIA

1. THIS CONTRACT IS A RATED ORDER RATING PAGE OF PAGES

UNDER DPAS (15 CFR 700)

2. CONTRACT NUMBER 3. SOLICITATION NUMBER 4. TYPE OF SOLICITATION 5. DATE ISSUED 6. REQUISITION/PURCHASE NUMBER

SEALED BID (IFB)

NEGOTIATED (RFP)

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

NOTE: In sealed bid solicitations "offer" and "Contractor" mean "bid" and "bidder".

9. Sealed offers in original and _____________________________ copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the depository located in until local time _______________________ (Hour) (Date)

CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All Offers are subject to all terms and conditions contained in this solicitation.

A. NAME B. TELEPHONE (NO COLLECT CALLS) C. E-MAIL ADDRESS

AREA CODE NUMBER EXT.

(X) SEC. DESCRIPTION PAGE(S) (X) SEC. DESCRIPTION PAGE(S)

PART I - THE SCHEDULE PART II - CONTRACT CLAUSES

A SOLICITATION/CONTRACT FORM I CONTRACT CLAUSES

B SUPPLIES OR SERVICES AND PRICES/COSTS PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

C DESCRIPTION/SPECS./WORK STATEMENT J LIST OF ATTACHMENTS

D PACKAGING AND MARKING PART IV - REPRESENTATIONS AND INSTRUCTIONS

X E INSPECTION AND ACCEPTANCE 46 x

F DELIVERIES OR PERFORMANCE

G CONTRACT ADMINISTRATION DATA L INSTR., CONDS., AND NOTICES TO OFFERORCONTRACTORS

H SPECIAL CONTRACT REQUIREMENTS M EVALUATION FACTORS FOR AWARD

K EPRESENTATIONS, CERTIFICATIONS AND OTHER 86-97

STATEMENTS OF OFFERORS

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

12. In compliance with the above, the undersigned agrees, if this offer is accepted within __210______ calendar days (60 calendar days unless a different period is inserted by the Offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the designated point(s), within the time specified in the schedule.

13. DISCOUNT FOR PROMPT PAYMENT 10 CALENDAR DAYS (%) 20 CALENDAR DAYS (%) 30 CALENDAR DAYS (%) CALENDAR DAYS (%)

(See Section I, Clause No. 52-232-8)

14. ACKNOWLEDGEMENT OF AMENDMENTS AMENDMENT NO. DATE AMENDMENT NO. DATE

(The Offeror acknowledges receipt of amendments to the SOLICITATION for and related documents numbered and dated:

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME AND

ADDRESS

OF OFFEROR

(Type or print)

15B. TELEPHONE NUMBER 17. SIGNATURE 18. OFFER DATE

AREA CODE NUMBER EXT.

15C. CHECK IF REMITTANCE ADDRESS IS DIFFERENT FROM

ABOVE - ENTER SUCH ADDRESS IN SCHEDULE

19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION: 23. SUBMIT INVOICES TO ADDRESS SHOWN IN ITEM (4 copies unless otherwise specified)

10 U.S.C. 2304(a) ( ) 41 U.S.C. 253(c) ( )

24. ADMINISTERED BY (If other than Item 7) 25. PAYMENT WILL BE MADE BYCODE CODE

26. NAME OF CONTRACTING OFFICER (Type or print)

Braden W. Enroth

27. UNITED STATES OF AMERICA 28. AWARD DATE

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

(Signature of Contracting Officer)

(REV. 9-97)

10. FOR INFORMATION CALL:

11. TABLE OF CONTENTS

STANDARD FORM 33

SOLICITATION, OFFER AND AWARD N/A

SOLICITATION

OFFER (Must be fully completed by Offeror)

AWARD (To be completed by Government)

1 131

RFP# SOL-386-11-000002

X

September 13, 2011

72000

Regional Office of Acquisition and Assistance, USAID/INDIA, American Embassy, Shantipath Chanakya Puri, New Delhi 110021, India

See section 7

ROAA, USAID/India, American Embassy(Gate 1), Chanakya Puri, New Delhi, India 1000 Hrs.(India) See cover letter

Arun Sehgal +91-11-24198796 indiarco@usaid.gov

See Attached Table of Contents

X 1

X 3-5

X 6-43

X 44-45

X

X 47-57 X 58-62

X 63-79

X 80-84

X 85

X

X 98-115

X 116-118

72000

Regional Office of Acquisition and Assistance, USAID/INDIA, American Embassy, Shantipath Chanakya Puri, New Delhi 110021, India

See section G.5

RFP # SOL-386-11-000002

TABLE OF CONTENTS

PART I – THE SCHEDULE…………………………………………………..……… 3

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS…………………… 3

SECTION C – STATEMENT OF WORK……………………………………………..6

SECTION D – PACKAGING AND MARKING………………………………………44

SECTION E – INSPECTION AND ACCEPTANCE………………………………….46

SECTION F – DELIVERIES OR PERFORMANCE…………………………………..47

SECTION G – CONTRACT ADMINISTRATION DATA…………………………….58

SECTION H – SPECIAL CONTRACT REQUIREMENTS……………………………63

PART II – CONTRACT CLAUSES (SECTION I)……………………………………..80

PART III – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS…..85

SECTION J – LIST OF ATTACHMENTS……………………………………………….85

PART IV – REPRESENTATIONS AND INSTRUCTIONS……………………………..86

SECTION K – REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS…….…………………………………………………..86

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS….98

SECTIOM M – EVALUATION FACTORS FOR AWARD……………………………116

ATTACHMENT 4 BUDGET SUMMARY FORMAT…………………………………119

ATTACHMENT 5 LOCAL COMPENSATION PLAN RANGE……………………...121

ATTACHEMNT 6 ACRONOYMS AND ABBREVATIONS………………………….129

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 PURPOSE

The purpose of this contract is to provide technical assistance and services as described in detail in Section C, Statement of Work for implementation of PARTNERSHIP TO ADVANCE CLEAN

ENERGY- DEPLOYMENT (PACE-D) in India.

B.2 CONTRACT TYPE

This is a Cost-Plus-Fixed-Fee (CPFF) completion-type contract. For the consideration set forth in the contract, the Contractor shall provide the results/ outcomes described in Section C (Statement of Work) and all reports and deliverable set forth in Section F.3 and F.4.

B.3 ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT

(a) The estimated cost for the performance of the work required hereunder, exclusive of fixed fee, is __________(TBD). The fixed fee is, if any, is _______ (TBD). The total estimated cost plus fixed fee, if any, is _________ (TBD).

(b) Within the estimated cost plus fixed fee, if any, specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the Contractor (and payment of fee, if any ) for performance hereunder is_______ (TBD). The Contractor shall not exceed the aforesaid obligated amount.

(c) Funds obligated hereunder are anticipated to be sufficient through ________(TBD).

B.4 PRICE SCHEDULE

CLIN DESCRIPTION AMOUNT ($)

001 Development Result 1: Improved end use energy efficiency by scaling up and deployment of Energy Efficiency technologies.

002* Development Result 2: Increased supply of renewable energy through scaling renewable energy technologies.

003* Development Result 3: Adoption and accelerated deployment of cleaner fossil technologies and management practices to achieve greater supply side efficiency from existing fossil power generation

004 Other activities and Management Support

TOTAL ESTIMATED COST

FIXED FEE

CEILING PRICE (Cost plus Fixed Fee) *Please note that all offerors shall include in their budget, a plug amount of $2 million for Task 6 (under CLIN 2) and another $2 million for the entire CLIN 3.

B.5 INDIRECT COSTS

Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

1/ 1/ 1/ 2/ 2/ 2/ 3/ 3/ 3/

1/Base of Application:

Type of Rate:

Period:

2/Base of Application:

Type of Rate:

Period:

3/Base of Application:

Type of Rate:

Period:

B.6 CEILING ON INDIRECT COST RATES AND FINAL REIMBURSEMENT FOR

INDIRECT COSTS

(a) Reimbursement for allowable indirect costs shall be at the lower rate of the final negotiated (or predetermined) rates, or the following ceiling rates:

The Contractor shall not receive indirect costs that exceed rates two percentage points or 10% of the individual indirect cost rates above, whichever is lower. The Contractor shall also negotiate ceiling indirect costs rates with their sub-contractors/sub-awardees that do not exceed two percentage points or 10% of the individual indirect costs rates in NICRA at time of award.

(b) The Government will not be obligated to pay any additional amount should the final indirect cost rates exceed the negotiated ceiling rates. If the final indirect cost rates are less than the negotiated ceiling rates, the negotiated rates will be reduced to conform to the lower rates. Final indirect costs exceeding the rate(s) applied to the base(s) shown above shall be absorbed by the Contractor.

(c) This understanding shall not change any monetary ceiling, obligation, or specific cost allowance or disallowance. Any changes in classifying or allocating indirect costs require the prior written approval of the Contracting Officer.

B.7 COST REIMBURSABLE

The U.S. dollar costs allowable shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable and AIDAR 752.7003, Documentation for Payment.

[END OF SECTION B]

SECTION C – DESCRIPTION / SPECIFICATIONS/STATEMENT OF WORK

C.1 BACKGROUND

C.1.a. Overview of India’s Energy Sector

Climate change and energy security have emerged as key global challenges of the 21st century.

Strategies, programs and initiatives facilitating innovation and large-scale adoption and deployment of low-carbon technologies will need to play a central role in global efforts to address climate change, alongside policies targeted directly at reducing greenhouse gas emissions.

India’s energy consumption is growing at over 7-8 percent annually, at which rate, by 2015, it could be the world’s fourth largest energy consumer. Indeed, India faces formidable challenges in meeting its energy needs. According to the Integrated Energy Policy report recently released by the Indian Planning Commission, “. . . to deliver a sustained growth rate of 8 percent through 2031-32 and to meet the lifeline energy needs of all citizens, India needs to increase its primary energy supply by 3 to 4 times and its electricity generation capacity by 5 to 6 times over 2003-04 levels. India’s commercial energy supply would need to grow from 5.2 percent to 6.1 percent per annum, while its total primary energy supply would need to grow at 4.3 percent to 5.1 percent annually.”1

The report also makes the pertinent observation that by the year 2030, power generation capacity must increase to nearly 800,000 megawatts (MW) from the current capacity of 160,000 MW (inclusive of captive power). This translates to an addition of about 500 MW every week over the next 25 years.

The formidable increase in energy demand will increase the country’s reliance on indigenous coal and, to a lesser extent, oil to meet its energy demand. While the country has large reserves of coal, it relies on imported oil for almost two-thirds of its oil needs, possesses limited natural gas reserves, and faces chronic electricity shortages. The inability of the electricity grid to supply reliable power, particularly to business consumers, has prompted increased use of captive power generation that often uses diesel fuel. The rising demand for petroleum products and natural gas is expected to be met through imports. Coupled with deteriorating coal quality, India’s energy situation is likely to worsen its vulnerability to volatile fuel prices in a tightening world oil and gas market. More recently, India has been exercising the option to import coal, placing its energy security at risk.

India’s projected economic growth depends on extensive infrastructure development on both sides of the energy equation – on the supply side, through fossil fuel production and power generation capacity; and on the demand side through manufacturing, commercial buildings, IT

1Commercial energy is power used by commercial entities. Primary energy consumption refers to the direct use at the source, or supply to users without transformation, of crude energy, that is, energy that has not been subjected to any conversion or transformation process. For example coking coal consumed in the steel production process (Source: Glossary of Environment Statistics, Studies in Methods, Series F, No. 67, United Nations, New York, 1997).

data centers and transportation highways. Further, the growth of renewable energy resources in the national energy scenario has been modest and much of the planned expansion in India’s power sector is predicated on the use of fossil fuels, with negative implications for emissions of both local air pollutants and greenhouse gases.

Finding adequate supplies of energy to satisfy this increased demand is a significant challenge.

The Indian energy sector continues to struggle to overcome chronic energy shortages caused by a historically low level of investment in the energy sector, increasing global competition for energy supplies and the high intensity of energy use, particularly in the value-added industry sector. This extraordinary energy demand growth and its accompanying Greenhouse Gas (GHG) emissions will place great stress on the financial, managerial and physical resources of the country, as well as on environmental and energy security challenges.2

Energy Access and Poverty

Availability and access to energy are considered catalysts for economic growth. Over half of India’s population does not have access to electricity or any other form of commercial energy.3Inadequate and unreliable electricity supplies affect India. A key challenge facing the country is how to improve reliability and adequacy of energy supplies while making modern energy services accessible and affordable to its entire population. Improving access to modern energy sources for the poor can make an important difference to the welfare of the poor and can be a catalyst for human development. The World Bank (WB) states ‘energy poverty’ is, “… a lack of access to modern, cost-effective and sustainable energy services, systems, and technologies - is widely recognized as a major impediment to human development in many areas of the world, with negative impacts on education, health, and gender.”4

India has a high level of poverty which is reflected in energy consumption patterns at the household level (low levels of use, lack of access to cleaner commercial fuels and high dependence on traditional biomass). In many parts of South Asia, inadequate and unreliable electricity supplies present the same key challenge - how to improve reliability and adequacy of energy supply, while making modern energy services accessible and affordable to the entire population of the region.

Energy service delivery, especially to the poor, contributes to achieving the Millennium Development Goals (MDGs). According to the UN Commission on Sustainable Development (CSD), “to implement the goal accepted by the international community to halve the proportion of people living on less that U.S. $1 per day by 2015, access to affordable energy services is a prerequisite.”

2 The single largest contributor, upwards of 65%, to India’s GHG emissions is its power supply sector. 70% of India’s power is generated by coal – and that coal is high in ash contributing to release of particulate matter and, due to its low heat value, more GHG emissions per kilowatt hour than most coal-fired utilities in the world.

3 Energy Section, XIth Five Year Plan, Planning Commission, Delhi.

4 World Bank Expert Paper, “Bridging the Divide between Poverty and Climate Change through Sustainable and Innovative Energy Technologies: Scaling up Sustainable Energy Innovations that can Address Climate Change and Poverty Reduction Needs,” Washington, 2009.

C.1.b. Government of India (GOI) initiatives: National Action Plan on Climate Change

In June 2008, India released its first National Action Plan on Climate Change (NAPCC), prepared under the guidance of the Prime Minister's Council on Climate Change. Eight National Missions form the core of the National Action Plan.5 NAPCC aims to promote understanding of climate change, adaptation and mitigation, energy efficiency and natural resource conservation.

India has already released details on these eight missions (Solar Energy, Enhanced Energy Efficiency, Water Systems, Sustainable Habitat, Green India, Sustainable Agriculture, Himalayan ecosystems and Strategic Knowledge on Climate Change) that make up the NAPCC.

The country will be adding a ninth mission on clean coal or clean carbon initiatives to the NAPCC. This mission will focus on developing next generation coal-fired power plants using advanced super-critical and integrated gasification combined cycle (IGCC) technologies and reducing carbon emissions per megawatt power generated.

NAPCC’s goal, implemented through its missions, is to promote India’s development objectives while also yielding co-benefits for addressing climate change. Some of the strategies and programs are already part of current action, although they may need a direction change and accelerated implementation. The Missions are being institutionalized by their respective Ministries and it is clear that several will involve action at state levels.

As per the directives from the Prime Minister, different states have initiated the process of preparing their own Action Plans on Climate Change. Delhi became the first state in November 2009 to launch its own Action Plan.6 The other states that have submitted their action plan to central government include Himachal Pradesh, Uttarakhand, Karnataka, Chandigarh and Haryana.

Orissa submitted its State Action Plan (SAP) on climate change in 2011.7 The state of Gujarat is in the process of formulating its climate change action plan. It has formed a separate climate change department .8

Prime Minister Singh constituted a 26-member expert group to help develop a low-carbon growth strategy for India.9 The intent of the low-carbon growth strategy is to examine the options, the costs, the alternatives, and the multiple benefits of moving to a low-carbon development pathway. It will provide more detailed guidelines as to what measures can be taken to form an integrated, detailed strategy and elaboration of various specific measures that will enable the GOI to meet its emission intensity objectives of 25 percent reduction by 2020. The Planning Commission released the interim report on low carbon strategy for India in 2011.

5 The Eight National Missions include Solar Energy; Enhanced Energy Efficiency; Sustainable Habitat; Conserving Water; Sustaining the Himalayan Ecosystem; "Green India"; Sustainable agriculture; and Strategic Knowledge Platform for Climate Change.

6 Press release on the website of Ministry of Environment & Forests, http://moef.nic.in/downloads/public-information/Press_Delhi_NAP.pdf 7 J Dash, Orissa sends final Climate Change Action Plan to MoEF, Business Standard, June 17, 2011, http://www.business-standard.com/india/news/orissa-sends-final-climate-change-action-plan-to-moef/439381/ 8 Climate Change Action & Adaptation, Climate Change Department, http://moef.nic.in/downloads/others/States-SAPCC-gujarat.pdf 9 The Expert Group on Low Carbon Strategies for Inclusive Growth formed in January 2010 is chaired by Dr. Kirit Parikh, former member of India's Planning Commission and hosts a formidable array of government, industry, academia, and civil society members.

India also plans to pass legislation setting national carbon dioxide emission targets and will form a national environmental regulatory agency with the power to enforce emission standards.

Creation of a clean energy fund was announced in the Indian Parliament by the Finance Minister Pranab Mukherjee in his annual budget speech in February 2010. A clean energy tax of 50 rupees per ton will be levied on all domestically-produced or imported coal and the resulting revenue will be used for renewable energy.

Furthermore, the December 2009 Copenhagen Accord on Climate Change has lent urgency to India’s plans to identify and implement mitigation actions to enable the country to transit to a low carbon development path over business-as-usual scenarios. India has joined over 100 countries in associating itself with the Accord and has inscribed a voluntary commitment to reduce its carbon intensity by 25 percent over 2005 levels by 2020. The Accord ensures a level international playing field where all major emitters – including China and India – must take the necessary steps to move to a clean energy economy. Both developed and developing countries are subjected to international review of the mitigation actions undertaken.

On the finance side, the Accord includes an overall pledge of approaching $30 billion between 2010 and 2012 by donor countries under the U.N. Framework Convention on Climate Change.

Global Climate Change (GCC) programs implemented by the United States Agency for International Development (USAID) will be counted as part of the U.S. contribution to the $30 billion pledge.

The Accord also explicitly acknowledges that a low emission development strategy is indispensable to sustainable development and requires developing countries to establish national GHG emission inventories, and to report these to the United Nations Framework on Climate Change Convention (UNFCCC) every two years.

C.1.c. USAID and the Global Climate Change Initiative

President Obama and the United State Government (USG) have committed to the various goals of the Copenhagen Accord and made Global Climate Change (GCC) a top priority for foreign policy as well as foreign assistance. The USG’s GCC strategy places emphasis on low-carbon development strategies, climate-proofing development, and national planning and capacity building. USAID has disaggregated its climate change activities into three pillars that correspond to the USG priorities and current efforts of USAID efforts/programs. The three pillars are:

1. Clean Energy: Includes activities that reduce, mitigate and/or sequester emissions of greenhouse gases in the energy, industry, urban and transport sectors; and,

2. Sustainable landscapes: Includes activities and projects that promote forest conservation, improved forest management, agro-forestry, soil conservation, and sustainable agriculture;

3. Adaptation: Includes activities where climate vulnerability and adaptation are an explicit part of project analysis and design.

USAID’s clean energy programs and activities reduce global warming by promoting the sustainable use of renewable energy technologies, energy efficient end-use technologies, carbon sequestration and carbon accounting. A primary objective of these programs is to reduce, mitigate, and/or sequester emissions of greenhouse gasses. In addition, GCC funded investments in clean energy:

Assist developing countries to achieve climate-resilient and low emissions development through support for national strategic plans on climate change, which will lead to significant reductions in carbon emission trajectories over the long-term, relative to established baselines.

Include an explicit objective to seek climate change-related outcomes of reducing, mitigating, and/or sequestering emissions of greenhouse gasses.

Monitor impact using one or more USAID climate change indicators.

USAID/India has a long standing partnership of over fifty-years with the Government of India in the energy sector. It began in 1950s when USAID/India supported infrastructure development to fuel economic growth in India’s power sector. Under its recent programs (mentioned below), USAID is working with Indian partners to improve viability of the power sector, conserve resources, and promote clean technologies and renewable energy.

The Energy Conservation and Commercialization (ECO) program is helping develop and implement policies to enhance the capabilities of the private and public sectors to deploy energy efficient technologies and services.

The Distribution Reforms Upgrades & Management (DRUM) program is building capacity in distribution reforms.

The Water-Energy Nexus Activity (WENEXA) program is helping the country address conservation issues that arise from water and energy’s interdependence.

The Greenhouse Gas Pollution Prevention (GEP) is working with the Indian power sector to reduce its GHG emissions by introducing new technologies and best practices to promote clean energy.

These programs are in various stages of closure. While ECO and GEP are closing on September 30, 2011, WENEXA and parts of DRUM program have already been completed.

C.1.d. U.S.-Indo Strategic Dialogue

The U.S. and India have been engaged in a strategic dialogue on energy since 2005. The U.S.- India Energy Dialogue, led by the U.S. Department of Energy (USDOE) and coordinated at the U.S. Embassy New Delhi, is co-chaired by the USDOE Secretary and Deputy Chairman of India’s Planning Commission. The Dialogue’s Steering Committee is co-chaired by the DOE Undersecretary and India’s Ministry of External Affairs (MEA) Secretary. The Dialogue consists of five working groups (WG) and various groups have met at various intervals over the years.

The activities under each group are briefly described below.

1. Civil Nuclear Energy WG: The topics covered by the WG include U.S. and Indian nuclear energy policy and plans for new power plant construction; on-going research and development (R&D); the nuclear hydrogen initiative; modeling and simulation for light water reactors; regulatory issues; waste management; closed fuel cycles; advanced heavy water reactors; pressurized water reactors; and digital instrumentation.

2. Oil and Gas WG: This WG continues cooperation on gas hydrates; energy information exchange; on-shore and off-shore production safety; strategic oil reserves, a planned industry round-table on India's oil and gas sector; and a series of U.S. Trade and Development Agency (TDA) projects for refineries, safety, regulatory regimes, coal bed methane and coal mine methane (CBM/CMM), and the national natural gas grid study.

3. Power and Energy Efficiency (P&EE) WG: This WG continues various programs including power plant emissions reduction projects supported by USAID and the Asia Pacific Partnership(APP) on Clean Development and Climate; Integrated Gas Combined Cycle (IGCC) task force; strategic partnership between the USDOE National Energy Technology Laboratory (NETL) and National Thermal Power Corporation (NTPC) on clean coal-fired thermal power technology; commercial clean coal technology business promotion; rural electrification in cost-effective, environmentally-sound ways;

and a wide array of energy efficiency collaboration for buildings, appliances, and industrial processes.

4. Coal WG: Covers an array of bilateral projects, such as in coal beneficiation, underground coal gasification, mining safety, CBM/CMM, coal-to-liquid technology, and mine management, as well as supporting multilateral projects under the APP.

5. New Technology and Renewable Energy (NTRE) WG: Covers investment and commercialization of renewable energy; dissemination in India's rural areas; solar cities;

solar and wind resource mapping and grid integration; concentrated solar power;

geothermal heat pumps; zero energy buildings; testing and certification; and implementation of the Biofuels cooperation.

The deliberations and recommendations of the P&EE and NTRE WGs are complementary and support the clean energy program activities envisaged under PACE, and are expected to guide its planning and implementation.

C.1.e. Partnership to Advance Clean Energy (PACE)

During the November 2009 visit of Prime Minister (PM) Singh to the U.S., a memorandum of understanding (MoU) was signed between the U.S. and India to enhance cooperation on energy security, energy efficiency, clean energy and climate change.10The partnership intends to focus on increasing collaboration in energy efficiency, renewable energy, and clean energy technologies with co-benefits for climate change through development, deployment and transfer of innovative technologies.

The key instrument to carry forward the US-India partnership in clean energy is the Partnership to Advance Clean Energy (PACE). As currently envisioned, PACE will support and strengthen the elements of the energy-technology innovation pipeline11 in India and will have two primary

10 The priority areas in MoU include renewable energy, energy efficiency, smart grids, carbon capture and storage, IGCC, sustainable transportation and advanced biofuels.

11 The elements of the energy technology innovation pipeline include research, development demonstration, “buying down” the costs of innovative energy technologies along their learning curves, and widespread deployment.

program components: PACE-R (for research), which includes a Joint Research Center (JRC);

and PACE-D (for deployment). PACE planning and design is a USG team effort with different agencies having specific responsibilities.

USAID has the lead in the design, project planning and preparation and implementation of PACE-D in consultation with GOI and will be supported by USG interagency teams in New Delhi and Washington. USAID/India’s four decades of energy experience in India, specifically in the development and promotion of cleaner coal technologies, energy efficiency and renewable energy, provide it with a unique understanding and a partnership base for launching a credible program in India. This will have to be enlarged to accommodate the role of the country’s private sector, trade and investment, research and academia in an approach that reflects the combined resources of the USG cutting across its various agencies.12 This “whole of government” approach is exceptional and brings to bear resources that no single agency can provide on its own.

C.1.f. Development Hypothesis and Strategic Approach

Central to India achieving its goal to voluntarily reduce its carbon intensity by 25 percent over 2005 levels by 2020, is the large scale deployment of low-carbon technologies in key energy-intensive sectors of the Indian economy. This is predicated on the ability of India to rapidly commercialize and deploy at scale low-carbon technologies, which need to be supported by an appropriate enabling environment and indigenous innovation capabilities. The policies need to emphasize both “hardware” (e.g. solar power plants, wind turbines, clean coal plants, etc.) as well as “software” – the flows of knowledge that underpin innovation and deployment capabilities in technology, policy, management and finance.

A solution and an opportunity to advance U.S.-India cooperation in clean energy through USAID’s PACE-D program is to assist in deploying clean energy technologies, systems and solutions. The strategy to accelerate clean energy deployment would contribute to economic growth, create green jobs in both countries, open U.S.-India trade and investment opportunities, and reduce losses. Improved financial health of state power utilities will reduce the amount of government subsidy. This would potentially lead to more investments in social infrastructure, such as health care and education. This strategic approach will build upon over twenty five years of technical assistance and training provided by USAID, including partnerships catalyzed between leading Indian energy/power companies, national labs, regulatory bodies and their U.S.

counterparts.

The PACE-D program is intended to meet USAID’s clean energy directive. It will reduce greenhouse gas (GHG) emissions per unit of electricity generated, through expenditures on deployment of clean energy and the development of India’s enabling environment (e.g. policies, laws, regulations and institutions). It also intends to assist in preparing India’s Low Carbon Strategy for Inclusive Growth, strengthening the greenhouse gas inventory and accounting system, and promoting carbon market readiness and carbon market mechanisms.

12 This includes USAID, Department of Commerce (DoC), Department of State (DoS), U.S. Department of Energy, Export Import Bank (EXIM), Overseas Private Investment Corporation (OPIC), and Trade and Development Agency.

C.2 EXPECTED RESULTS

The key results expected under this program are as follows:

Development Result 1: Improved end use energy efficiency by scaling up and deployment of Energy Efficiency technologies.

Development Result 2: Increased supply of renewable energy through scaling renewable energy technologies.

Development Result 3: Adoption and accelerated deployment of cleaner fossil technologies and management practices to achieve greater supply side efficiency from existing fossil power generation.

C.3 STATEMENT OF WORK

Objective:

This statement of work (SOW) outlines the requirements for the new five-year clean energy program, PACE-D, between USAID/India and the GOI. The program will contribute to USAID/India’s Assistance Objective of accelerating India’s transition to a high performing, low emissions, and energy secure economy. The program will increase collaboration in clean energy with co-benefits for addressing climate change concerns. This will be achieved through development, deployment and transfer of transformative and innovative technologies. The program will enhance an enabling environment, build capacity to design and implement supportive policies and regulations, create new financial instruments, and design and implement clean energy programs for faster and more cost effective acquisition of the clean energy resources.

The program will leave a legacy of a transformed energy economy fueled by lower carbon fuels.

This legacy will possess the internal dynamism to continue the trajectory of low carbon growth catalyzed by USAID’s efforts.

C.3.a. Development Result 1: Improved end-use energy efficiency through scaling up and deployment of Energy Efficiency technologies

India’s rapid economic growth has been accompanied by a corresponding growth in demand for energy services. The gap between electricity supply and demand in terms of both capacity (i.e.

kW) and energy (i.e. kWh) has been steadily growing in India. Vulnerabilities are being addressed by diversifying energy imports, developing indigenous fossil and renewable energy sources, and reducing the intensity of energy use of the Indian economy. Meeting rising energy demand exclusively through increases in supply without demand side management is an expensive solution that will increase GHG emissions. Advancing the efficient use of energy is therefore crucial to address the twin challenges of energy security and greenhouse emissions mitigation.

There is a tremendous opportunity to tap on-the-ground energy efficiency (EE) potential, but several barriers have constrained the implementation of EE projects. These include higher initial capital costs, uninformed investors with little familiarity with energy efficient products, inequitable pricing, inadequate performance guarantees from EE equipment suppliers, and limited financial intermediation by banks and other lending institutions to promote and develop EE lending. Other constraints include inadequate private sector service delivery mechanisms such as energy service companies (ESCOs), lack of information, asymmetry in sharing costs and benefits.13 There is a need to treat EE on the same economic basis as new capacity.

Technology cooperation and deployment in EE have emerged as a key mechanism to enhance end-use efficiency. Both hardware and software (i.e. policy, regulatory, institutional, financial and new market based approaches) are essential to scale-up EE.

USAID/India, through the PACE-D program, aims to accelerate clean energy deployment by facilitating the integration and expansion of existing Indian and U.S. public and private sector activities, fostering institutional partnerships and commercial collaboration, supporting development of a favorable business environment for EE projects in India, and supporting technical assistance (TA) for innovative financing mechanisms and expanding technical, policy, financial, programmatic knowledge about clean energy in India.

The GOI’s Ministry of Power (MOP) and Bureau of Energy Efficiency (BEE) will be the primary counterparts for Component 1 of PACE-D. PACE-D will assist these two entities to implement the GOI’s National Mission on Enhanced Energy Efficiency (NMEEE) through deployment of clean energy technologies, systems and solutions in demand-side management, and end-use EE. The GOI will also be supported to develop a smart grid vision and roadmap that will be adapted to Indian conditions. This will be achieved by creating an enabling environment such as strengthened regulatory and policy measures; increased financing, transformed markets, and enhanced institutional and human capacity to implement EE programs and smart grid projects across the power value chain from transmission, through distribution, to end-use.

To achieve success under this development result, the contractor is expected to produce the following deliverable:

Task 1: Market Driven Energy Efficiency Technology Deployment

One of the major objectives of the PACE-D program is to bring clean, reliable and affordable EE technologies to the marketplace. Most new EE technologies have higher costs than the technologies that they seek to displace. It is only through technological innovations, development and marketplace deployment that these costs are reduced. The goal is to increase the rate and scale of EE technology market penetration through demonstrations and pilot programs.

i. Smart Grids Electric System

One very effective strategy to improve efficiency is to implement ‘Smart Grid Technology’. The Smart Grid can be defined as the secure integration of two infrastructures – namely the electrical and information. This term captures a broad range of technology, policy, governance and regulatory options to create incentives for utilities and consumers to optimize the generation, 13Particularly in the building sector with not much incentive to build efficient new buildings.

transmission, distribution and use of energy. It will affect utilities, regulators, energy service providers, technology and automation vendors and all consumers of electricity.

Smart grids will enable much finer control of energy flows, and integrate renewable forms of energy and other advanced technologies. It will also create more reliable, robust and secure electrical infrastructure, and help optimize the enormous investments required to build and operate physical infrastructure.

For India, the smart grid may offer a unique opportunity to leapfrog into a vastly improved electricity environment. The development of a smart grid vision tailored to India’s unique needs and circumstances is an important first step. A brief review of that vision suggests that there is enormous potential for gain.

Activities shall include:

TA and capacity building to support policy and regulatory mechanisms to develop a national smart grid vision/roadmap, and common operability standards.

TA to identify appropriate communication technologies based on smart grid pilots carried out in the U.S.

TA to achieve active network management and grid integration of renewable energy.

TA for promotion and adoption of smart devices for home energy management.

TA to support the development of center of excellence on smart grid.

Provide TA for demonstration or pilot projects including site selection, detailed design specifications, development of public/private partnership models, and develop requests for proposals.

Build the capacity of regulators, policymakers and utilities on smart grid technologies through training programs, workshops, technical seminars, conferences and consumer outreach programs including studies/surveys.

Deliverables include:

An action plan, developed in partnership with the Ministry of Power, to roll out smart grids tailored to India’s unique needs and requirements.

A white paper on common operability standards for the Indian power sector to support a national smart grid road map.

A document on the status of smart grid pilots in the U.S., including the communication technologies adopted, lessons learned from these pilots, and recommendations for the Indian power sector.

At least two designs (including site features, engineering and detailed technical specifications) and implementation of two smart grid pilots.

At least one international seminar to improve capacity of various stakeholders including utilities, consumers, technology providers, and regulators to implement smart grid projects and programs.

ii. Cost Effective, Net-Zero Energy Buildings

Energy use in buildings worldwide accounts for over 40% of primary energy use, and 24% of greenhouse gas emissions. 70% of India's projected commercial building stock for 2030 has not been built yet. India has already identified buildings as an area in need of policy interventions.

The national energy code for minimum commercial building performance was launched, along with a performance-based rating program for office buildings. Net-Zero Energy Buildings (NZEBs) generate as much energy as they consume through cutting-edge efficiency technologies and on-site systems such as solar power and geothermal energy. A longer-term policy initiative that would encourage cutting edge research and cost-effective technologies for commercial buildings is the need of the hour. There is also a growing realization that major breakthroughs to reduce energy use in buildings are required (e.g. ground source heat pumps, white roofs, etc.);

on-site renewable energy technologies (e.g. building-integrated photovoltaics, etc.) are also needed.

Activities shall include:

Pre-feasibility and feasibility studies to develop and deploy cost effective energy efficiency technologies for NZEB.

Design a pilot project through which NZEB technologies/concepts can be implemented.

Develop and implement outreach and education programs on NZEB for all stakeholders.

Deliverables include:

A detailed plan for improving awareness of different stakeholders on NZEB and conducting at least one international seminar on the said subject.

A design and implementation of at least one pilot NZEB.

iii. Waste Heat Utilization

Utilization of waste heat in all types of commercial and industrial establishments can provide a significant benefit. Waste heat is generated as fuel combusts and is “dumped” into the environment. A large quantity of hot gases is generated in boilers, kilns, ovens and furnaces.

Much of the heat could be recycled and utilized gainfully. This subcomponent will focus on developing and deploying cost effective technologies and policies and initiatives to utilize waste heat.

Activities shall include:

Pre-feasibility and feasibility studies to develop and deploy cost effective technologies like waste heat utilization.

Design a pilot project to showcase waste heat utilization technologies and practices.

Deliverables include:

A design and implementation of one pilot for waste heat utilization technologies and practices.

iv. Heating, Ventilation and Air Condition (HVAC) technologies

India is experiencing a 35% annual growth rate for air-conditioning equipment, a trend that is predicted to last until 2016.14 This reflects a steady rise in the number of air conditioning

14Bradsher, K.: Push to fix ozone layer and slow global warming, March 15 2007, New York Times.

systems, which are indispensable in India’s tropical climate where temperatures are as high as 50°C in summer. In 2007, 2.3 million air conditioners were sold in India, which is approximately 3% of the global production. This calls for a major national initiative to encourage the use of innovative HVAC technologies (e.g., radiant cooling, GSHP, direct-indirect evaporative cooling, etc.) that could reduce the energy use by HVAC systems by more than 50%. The project may focus on identifying and deploying cost effective HVAC technologies, practices, and policies.

Activities shall include:

Pre-feasibility and feasibility studies for deploying cost effective technologies like HVAC.

Design of pilot projects for demonstration of HVAC technologies and practices.

Deliverables include:

Development of design and implementation of one pilot for HVAC.

Task 2: Institutional Development and strengthening of policy framework for EE Deployment

On June 24, 2010, the Indian Cabinet approved the National Mission on Enhanced Energy Efficiency, which is one of the eight missions under the NAPCC. NMEEE will enable several billion dollars worth of transactions in EE through market-based approaches. The MOP and the Bureau of Energy Efficiency (BEE) prepared the implementation plan for NMEEE. Some of the initiatives proposed under NMEEE are:

Perform Achieve and Trade (PAT): A market-based mechanism to enhance EE in large energy-intensive industries and facilities through certifications of energy savings (ESCerts) that could be traded. The ESCerts would have synergies with the renewable energy (RE) certificates issued by Ministry of New & Renewable Energy (MNRE).

Market Transformation for Energy Efficiency (MTEE): Accelerated shift to energy efficient appliances through innovative measures to make the products more affordable. Activities planned include: a Clean Development Mechanism (CDM) Roadmap, programmatic CDM, standards and labeling, public procurement, technology programs, an Energy Conservation Building Code (ECBC), and ESCOs Promotion.

PACE-D will provide programmatic support to BEE through technical assistance and capacity building activities to implement activities under NMEEE. A national ESCO - Energy Efficiency Services Ltd (EESL) has been established as a joint venture of the public sector organization of MOP to pursue energy efficiency projects across the country. It is envisaged that PACE-D would partner with EESL by providing technical assistance and training to assist in designing and financing EE projects.

While BEE and MOP are leading the centralized planning and design of EE programs, they must be supported by a strong and decentralized program at the state…