Selection Information
Assignment Title: Rapid Assessment of BESS Potential across the Power Sector Supply Chain in Turkey
Publication Date: 04-Aug-2021
Expression of Interest Deadline: 11-Aug-2021 at 11:59:59 PM (Eastern Time – Washington D.C.)
Language of Notice: English
Selection Notice
Assignment Country: TR – Turkey
Funding Sources: The World Bank Group intends to finance the assignment/services under:BB – BANK BUDGET, TF0B2395 – Turkey Energy Transition Program (P173157)
Individual/Firm: The consultant will be a firm.
Rapid Assessment of BESS Potential across the Power Sector Supply Chain in Turkey
Introduction
Demand electricity in Turkey grew at fast rate from 2000 to 2016 but has remained almost flat in the last 4 years. Without the COVID crisis, it is expected that total electricity production would have reached 310 TWh in 2020. Per capita electricity generation increased by 95% between the years of 2001 and 2017.
Non-hydro renewable generation has experienced significant market grown in the last 6 years, representing in 2020 about 17% of total electricity production, as show in the following graph. It is expected that VRE will continue growing its participation in the generation mix.
The rapid development of intermittent RES into the energy mix (henceforth VRE) necessitates additional measures to ensure system stability and reliability. This expected increase in VRE will prompt the need for a “flexible” power system, which will empower TEIAS, (the Turkish transmission system operator) and to a lesser extent local DSOs – to control VRE in a more cost-efficient and secure way. Energy storage systems (together with interconnections, flexible generation units, and Demand side response) consist of one of the primary sources of “flexibility”, enabling the system integration of large amount of VRE, and therefore catalyzing the energy transition of Turkey.
The World Bank believes that storage technologies could play an important role to realize the “Energy Transition” and to reach the Sustainable Development Goals in Energy, if an adequate enabling environment is in place. Without energy storage, the cost of transforming the power sector and integrating enormous quantities of variable Renewable Energy on which the energy transition is based would be prohibitive. At the same time, the World Bank is aware that monetization of the multiple services provided by BESS is still embryonic, particularly in developing countries. Furthermore, price signals do not reflect scarcity and the real economic value that BESS could add to the power system.
The World Bank has been supporting the GoT in the identification and assessment of potential sources of flexibility, focusing on the deployment of BESS (or Battery Energy Storage Systems). Two major studies were carried out in the last few years, trying to assess BESS potential, as well as economic and financial viability:
- A major study was carried out in 2019, with support from EdF, to assess the potential of storage for the Turkish power system, particularly focused on front-of-the-meter BESS options and TEAIS. The study offered a valuable, detailed cost-benefit analysis of various options for deploying BESS technology with a 10-year horizon (till 2030). The central core of the TA project was the examination in depth of specific cases offering potential use of BESS. The study suggested that the only service provided by BESS representing real value for the Turkish Power System today and for the coming years is Frequency Containment Reserve – FCR. According to the study, BESS deployment for other uses like Congestion Management, Secondary Frequency Response, RES smoothing, and Energy Price Arbitrage have not proven their feasibility with the current situation of the Turkish power market. The EdF study relied on current regulations and price signals in the wholesale and retail markets, and on the actual possibilities for monetization given current policies and regulations of the power sector in Turkey.
- Another study, realized with the support of a consortium led by Castalia, focused on behind-the-meter BESS options couple with RSPV, concluding that such solutions could be used for peak-shifting, to charge the battery during daytime off-peak hours and discharge during peak times. However, the cost structure of the electricity tariff in Turkey does not incentivize consumers to adopt such solutions, impacting their financial viability. Having said that, the study did not look at system wide benefit that could arise by behind-the-meters BESS coupled with RSPV solutions.
For both behind the meter and front of the meter solutions, existing wholesale price signals in Turkey do not have sufficient granularity (in time and space) to value services that BESS can potentially provide at system level. Turkey adopts one single wholesale price (adjusted for technical losses). Therefore, congestion in a system of this vast size is not correctly priced, distorting decisions on the efficient deployment of BESS resources, underestimating the value that BESS might bring to the system, such as BESS competing directly with grid expansion. At consumer level, the tariff structure is not conducive to incentive consumers to install BESS, but there is no analysis of potential benefits at system level.
In addition, there are some regulatory constraints (in Turkey and in the EU) on the ownership and full utilization of BESS by TSOs and DSOs, since those institutions are not allowed to trade energy. This constraint limits a full utilization of the potential benefits of BESS to the system (value stacking), increasing the cost of storage to the end-user.
Objective of the Consulting Assignment
The objective of the assignment is to develop a rapid-assessment of the market potential for BESS in turkey across the value chain and assess it economic and financial viability from a power system point of view as well as what regulatory and institutional barriers should be address to scale-up BESS over time.
The findings and recommendations of this assignment should help the World Bank and MENR make informed decisions on the recommended BESS investments and potentially financing part of those investments with climate funds.
ELIGIBILITY
INDIVIDUAL / FIRM PROFILE
The consultant will be a firm.
SUBMISSION REQUIREMENTS
The World Bank Group now invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Consultants may associate to enhance their qualifications.
Interested firms are hereby invited to submit expressions of interest.
Expressions of Interest should be submitted, in English, electronically through World Bank Group eConsultant2 (https://wbgeconsult2.worldbank.org/wbgec/index.html)
NOTES
Following this invitation for Expression of Interest, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding.
Only those firms which have been shortlisted will receive notification. No debrief will be provided to firms which have not been shortlisted.
Qualification Criteria
- 1. Provide information showing that they are qualified in the field of the assignment. *
- 2. Provide information on the technical and managerial capabilities of the firm. *
- 3. Provide information on their core business and years in business. *