Subject:       Engineering-Economic Analysis Support for medium-scale new Thermal Power Plants in Islands




acting on its authority based on Law 2773/1999.





interested accredited consulting firms or consortia (hereafter referred to as “the Consultant”) to submit proposals concerning services to RAE regarding engineering-economic analysis of medium-scale new thermal power plants to be built in two Greek Islands, namely Crete and Rhodes.


1. Introduction and Background


1. The Regulatory Authority for Energy of the Hellenic Republic (RAE), established by Greek law 2773/1999 as an independent administrative Authority with competence over the whole of the energy sector.


According to article 11 of Greek law 2773/1999 new power-generation licenses (corresponding to new power plant projects) in the non-interconnected islands of Greece are awarded following a tendering process.


The corresponding power generation plants shall operate within a build-own and operate (BOO) regime and shall be dispatched and remunerated according to a power purchase agreement (PPA) that the island’s network operator, mainly PPC, has to apply. The participants in the tendering process offer a technical solution for a specific location of the plant. During the first phase of the BOO selection process, the offers are evaluated for pre-selection. Then the license granting authority submits to the selected participants detailed terms of reference that describe one or several acceptable technical solutions and the proposed terms of a draft PPA. Afterwards, the participants submit their detailed financial and technical offers and are finally evaluated for selection of the winner.


RAE is responsible for the evaluation and the recommendation to the Minister of Development who awards the power generation license.


2. The present call for proposals concerns engineering-economic support to RAE for the technical evaluation within the first phase of the BOO process and the suggestion of one or several alternative technical solutions that will be the basis for the next phase of the BOO process.


3. At present two tendering process have been launched, namely for the island of Crete (220 MW) and the island of Rhodes (120 MW). The plants should be using oil products and must have a dual-firing possibility for natural gas. They have also to observe strict environmental standards. For Rhodes the future site of the plant is specified. For Crete the selection of the site of the plant is at the discretion of each proposal, but the site has to be located in the broader area of Rethymnon department.


For the first phase of the BOO process, nine (9) proposals for Crete and eight (8) for Rhodes have been submitted to RAE. They include a description of the technical solution proposed and a description of previous experience and financial capabilities of the proposing firm or consortium.


4. The evaluation of the technical solutions offered and the configuration of the technical solution(s) that will be imposed for the next phase of the BOO process should follow the Regulation for the Authorization of Generation Licenses, which is available in Greek language at The evaluation and the suggestions shall be based not only on an adequate engineering-economic and environmental evaluation of individual plant technology in relation to the specific location of the plant, but also on aspects of integration and operation of the plant within the island’s system. To cover this need, independently of the present call, RAE studies power generation planning for both islands and a forecast of least cost unit commitment under alternative assumptions about future plants and environmental constraints. The study’s output includes the range of operability of new plants under alternative assumptions. RAE will provide this study to the Consultant and will assist him regarding planning, system and island-related economic aspects that will be necessary for the Consultant to carry out the project.


2. Scope of consultancy services


RAE requires the Consultant to carry out the Tasks given below in connection with the restructuring of the gas industry in Greece:


Task 1: Provide to RAE an overview of best available technologies for medium scale power generation (100-200 MW) using oil products with dual-firing possibility regarding natural gas, including comparative assessment of their energy efficiency, technical reliability, operational flexibility, economics and environmental implications (with or without additional environmental protection equipment). The review should also cover auxiliary equipment and in particular fuel supply facilities in the conditions in an island.

Task 2: Study the 17 proposals (9 for Crete and 8 for Rhodes) and present to RAE a systematic review of the different technical solutions proposed and a categorization in relation to best available technologies, technical-economic performance indicators, environmental impacts, operational characteristics and fuel supply options. This review should make reference to the specific sites proposed, their location in relation to fuel supply possibilities and to their accessibility to transportation routes and electricity networks.

Task 3: Rank the categorized technical solutions (including options for auxiliary systems, fuel supply facilities and environmental protection equipment) against the evaluation criteria for power generation licenses as listed in the Regulation for Generation License Authorization. The criteria refer to site: specific possibilities to get land-use, environmental and other permissions; technical-energy performance; economic performance; environmental impacts; system (island’s network) reliability and operational impacts; system connection possibilities; and security of supply. Also the consultant should rank the categorized technical solutions and options against implications for total cost and review possible trade-offs between costs and other criteria.

Task 4: For each island: a) Suggest to RAE the eventual elimination of some of the technical solutions and the inclusion or exclusion of optional equipment; b) Suggest to RAE one, two or several technical solutions that might be desired in view of the evaluation criteria as mentioned above.

Task 5: Propose to RAE an outline of key technical specifications for each of the technical solutions that RAE will select following the suggestion of the consultant as permitted candidates for the next phase of the tendering process. The specification must be drafted at the level of detail as required for a BOO tendering process.


3. Reports


The reports and documents prepared as part of the work under each Task shall be submitted by the Consultant in hard copies (2 copies) and electronic copies (Microsoft Office 98 or later version). The language of the reports may be Greek or English.


The Consultant may propose the frequency, content and layout of the reports and documents.


4. Offers


          The proposals should include:


(1)            A short presentation of the Consultant’s understanding of the problem and the general methodological approach he proposes to follow.

(2)            A description of the services to be offered, as envisaged by the Consultant, by Task, the corresponding methodology, and the proposed consultation and reporting requirements.

(3)            A proposal concerning the timetable for the services offered, by Task, the basis for charging for them, a cumulative cost proposal, and separately optional travel fees. The total budget cannot exceed 130 thousand Euro and the total project duration must not exceed 1 and a half months.

(4)            A detailed description of Consultant’s past experience and the CVs of the persons to be involved in the present study, including details of persons and experts to be committed for the project (by name of person, person-hours and by task).

(5)            A bank guarantee of 5000 Euro for the participation in the tender and for the commitment to carry out the project if the Consultant is selected. The selected consultant will be asked to provide a bank guarantee equal to 5% of total project cost for good performance.


5. Selection criteria


The selection of the consultant will be based on the following criteria:


(1)            Understanding of the specific problem and appropriateness of the proposed methodological approach. (Weight 20%)

(2)            Background experience, CVs of key staff and commitment of highly qualified personnel to the project. (Weight 40%)

(3)            Project organization, project management, quality assurance and project time schedule. (Weight 10%)

(4)            Total cost of the Project. (Weight 30%)


RAE reserves the right not to award the study, for any reason.

The Consultant must not be involved in any of the proposals submitted within the BOO process for Rhodes and Crete.

6. Submission


All proposals (one copy) need to be submitted by registered mail, hand or courier delivery to RAE’s address: Panepistimiou 69, Athens 104 31. All proposals must be in a sealed envelope indicating, “Offer to Engineering-Economic Analysis Support for medium-scale new Thermal Power Plants in Islands” and the name of the proposing firm or consortium.


Deadline for receiving proposals at RAE’s premises: 4 January 2002, 15:00.


Further information is possible by writing to RAE or e-mailing to