A team of 2 (two) national consultants (legal and regulatory impact assessment) to support Moldova in transposition of the Balancing Network Code (emerging support).Vacancy Number: Pr22/02627
Background
Moldova is part of the EU’s European Neighborhood Policy (ENP) and in the Eastern Partnership framework, which aims at strengthening individual and regional relationships between the EU and countries in its neighborhood. Moldova is also part of the Energy Community Treaty since 2010 and has signed the Association Agreement with EU in June 2014, including the DCFTA which entered into force in 2016. Moldova was granted candidate status for the EU in June 2022. As a follow-up, Moldova is required to ensure the transposition of the EU acquis Communautaire, which underpins the EU energy legislation on electricity, gas, oil, renewables, efficacity, and the environment. The country fully synchronized its electricity network with the ENTSO-E and relates to the European electricity market The energy sector is one of the top priorities for the Government and it is addressed in Government’s Plans and several policy documents, laws and regulations. The most important are the following: the draft National Development Strategy 2030, the National Energy Strategy 2030, Law on energy, Law on electricity, Law on promoting use of energy from renewable sources, Law on natural gas, Law on energy efficiency, Law on the energy performance of buildings, Law on the labelling of products with energy impact, Law on eco- design requirements for energy-related products, etc., as well as a list of secondary legislation, meant necessary to ensure for the implementation of the primary legislation. Moldova consumes around 4 million tonnes of oil equivalent (Mtoe) of energy per year (4.1 Mtoe in 2018). Around 20% of its energy demand is covered by domestic production, consisting almost fully of solid biomass; total domestic energy production was 0.82 Mtoe in 2018, of which 0.79 Mtoe solid biofuels. All natural gas consumption (2.1 Mtoe, or 2.9 billion cubic meters in 2014) is met through imports, mainly from Russia via Ukraine. In August 2014 the Iasi-Ungheni gas interconnector between Romania and Moldova was commissioned and became operational in 2015. The pipeline became operational in autumn 2021 but it is still rather empty and unused. Most coal consumed must be imported as well (0.09 Mtoe in 2018). Natural gas accounts for more than half of Moldova’s total primary energy supply (53% in 2018), oil roughly a quarter (23% in 2018) and solid biomass one-fifth (19% in 2018). Most natural gas is used for electricity and heat generation, whereas oil is the most important energy source for final consumers. Residential sector is the largest energy consuming sector (around 1.4 Mtoe in 2018), solid biofuels covering over 50% of the sectoral consumption. Because the country lacks energy resources, it is almost wholly dependent on electricity imports. Only 6% of electricity generation comes from renewable sources (hydro, wind, solar PV). Moldova’s electricity sector is characterized by big dependence on one source, a thermal power plant in the Transnistria region. Development of the interconnection project that will improve the management of flows with neighboring Romania is slow. Interconnection through back-to-back station is expected to be completed by 2024. In accordance with the existing strategic planning documents, one of the main priorities of the Government is to diversify the energy mix with more renewable energy, which is also fully in line with commitments under the EU Clean Energy for all Europeans package. Achieving this goal will require significant investment in the medium and long term, but also the country’s ability to attract and absorb the funds. The development of renewables, such as wind and solar, will also depend on improving the balancing capabilities of the Moldovan power system and its integration with neighboring countries. Starting with October 2021, Moldova faced a significant crisis in the gas sector, which outlined the need to undertake more actions towards improving the energy security of the Republic of Moldova, both in the natural gas and electricity sectors. The acute gas supply crisis in Moldova has also been the subject of discussions within the Moldova-EU Association Council meeting on October 28, 2021. The EU and Moldova stressed the importance of resilience against any potential efforts by third parties to use energy as a geopolitical lever. The Association Council recalled the importance of continued energy market reform to strengthen competition and transparency in this sector. The EU has urged Moldova to ensure that the energy sector reform demonstrates full respect for the Energy Community acquis and is in line with the EU Third Energy Package. The EU side supported Moldova to synchronize its electricity network with the Continental European Network (CEN), which happened in February 2022, an important step toward the integration into the EU energy system and market. Under these circumstances, the Government of Moldova will be assisted to tackle the current energy crisis and energy poverty and addressing prioritized systemic elements in the energy sector to cope with the potential future energy crisis. In partnership with the EU, UNDP Moldova will, therefore, support the Government of Moldova:
Moldova is a Party to the Energy Community Treaty since 2010. By adopting the Energy Community Treaty, Moldova made legally binding commitments to adopt core EU energy legislation, the so-called "acquis communautaire”. One of the conclusions of the 23rd Energy Community Electricity Forum (June 2018) was that the Forum supports the Energy Community Secretariat’s initiative on the implementation of electricity guidelines in the Contracting Parties and underlines the need for a legally binding solution for their application on interconnections between the EU Member States and Contracting Parties. In this context, the Forum highlighted that the reform of the Energy Community Treaty is an indispensable pre-requisite for effective energy market enhancement in the Contracting Parties as well as for their successful integration with neighboring EU markets. It is expected that within the upcoming Energy Community Ministerial Meeting, Regulation 2017/2195 establishing a guideline on electricity balancing will be included in the "acquis communautaire” and become legally binding for Parties to the Treaty, including Moldova. The Regulation 2017/2195 lays down a detailed guideline on electricity balancing including the establishment of common principles for the procurement and the settlement of frequency containment reserves, frequency restoration reserves, and replacement reserves, and a common methodology for the activation of frequency restoration reserves and replacement reserves. This Regulation shall apply to transmission system operators (‘TSOs’), distribution system operators (‘DSOs’) including closed distribution systems, regulatory authorities, the Agency for the Cooperation of Energy Regulators, the European Network of Transmission System Operators for Electricity (‘ENTSO-E’), third parties to whom responsibilities have been delegated or assigned and other market participants. The main features of the Electricity Balancing Guideline refer to:
The transposition into national legislation of Regulation (EU) No. 2017/2195, as adapted by the Energy Community, will allow continuing carrying out the reforms initiated in the electricity sector, by adopting secondary legislation and completing the existing normative base, which is essential for the proper functioning of the system, in accordance with the provisions of the 3rd Energy Package, which was transposed into Law no. 107 of 27.05.2016 on electricity. The national regulatory framework in this area consists, inter alia, of:
The institutional framework in this area is consisting of:
To enter on the electricity market of Moldova, the new market participants first need to benefit from a harmonized regulatory framework and similar rules that exist on the internal market in the EU (rules regarding the balancing of the electricity system). The implementation of guidelines on electricity balancing harmonized with the relevant normative acts of the European Union will ensure that the TSO carries out its activities in accordance with the same processes, requirements, provisions, and principles as the counterparts from the EU countries and Energy Community Contracting parties. In this context, UNDP Moldova is seeking to hire 2 (two) consultants who will support TSO and National Agency for Energy Regulation in transposing into national legislation Regulation 2017/2195. [1] https://www.legis.md/cautare/getResults?doc_id=133001&lang=ro# [2] https://www.legis.md/cautare/getResults?doc_id=129524&lang=ro# [3] https://www.legis.md/cautare/getResults?doc_id=131508&lang=ro# Scope of work
The general objective of the assignment is to support TSO and National Agency for Energy Regulation to develop the legal act and its regulatory impact assessment in support to the transposition into national legislation framework the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing. The Team of consultants, will consist of:
Important Note: The potential applicants shall clearly indicate the position they are applying for in the Application Letter. The applicants may apply for both positions and this fact shall be clearly indicated in the Application Letter, with the possibility to be selected for 1 (one) position only. Being supervised by Programme Manager and/or Team Leader for Component 1, and in close cooperation with international consultant, and the relevant staff of the National Agency for Energy Regulation and TSO, the team of two consultants are expected to perform the following tasks: Position 1 – National legal consultant:
Position 2 – Regulatory impact assessment consultant:
Requirements for experience
Position 1 – National legal consultant 1.Education:
2. Experience:
3. Competencies:
Position 2 – Regulatory impact assessment consultant 1. Education:
2. Experience:
3.Competencies:
The UNDP Moldova is committed to workforce diversity. Women, persons with disabilities, Roma and other ethnic or religious minorities, persons living with HIV, as well as refugees and other non-citizens legally entitled to work in the Republic of Moldova, are particularly encouraged to apply. Documents to be included
Interested individual consultants must submit the following documents/information to demonstrate their qualifications:
Important notice: The applicants who have the statute of Government Official / Public Servant prior to appointment will be asked to submit the following documentation:
A retired government official is not considered in this case a government official, and as such, may be contracted. Financial proposal
The financial proposal shall specify a total lump sum amount, and payment terms around specific and measurable (qualitative and quantitative) deliverables (i.e., whether payments fall in installments or upon completion of the entire contract). Payments are based upon output, i.e., upon delivery of the services specified in the TOR. Payments will be disbursed in several instalments, upon submission and approval of deliverables, and certification by UNDP Moldova Programme Specialist/Cluster Lead that the services have been satisfactorily performed. | |||||||||||||||||||||
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