Section 3 TERMS OF REFERENCE (TOR) Secretariat of the International Renewable Energy Agency (IRENA) Knowledge, Policy and Finance Centre (KPFC) Study on environmental impact from large-scale deployment of renewable energy technologies I. Background The International Renewable Energy Agency (IRENA) is an inter-governmental organisation, mandated by member states around the world to promote the widespread and increased adoption and “sustainable use” of all forms of renewable energy. This concerns all forms of energy produced from renewable sources in a sustainable manner, which include bioenergy, geothermal energy, hydropower, ocean, solar and wind energy. Renewable energy generation represents one of the most promising options to lower greenhouse gas emissions while satisfying the increasing global demand for energy services. If implemented properly, renewable energy might contribute significantly to social and economic development, ensure energy access, secure energy supply, as well as reduce negative impacts on the environment and public health. IRENA’s mandate for promoting renewable energy is closely linked to the realisation of sustainable development. The role of renewables across the three pillars of sustainability is increasingly investigated by experts and the public alike as their deployment progresses. Even though renewables can mitigate adverse environmental impacts from conventional energy production, their deployment may also come with environmental trade-offs that could lead to negative consequences and function as barriers when considering these options as alternatives for energy generation. So far, environmental impacts from large-deployment of renewable energy technologies have not been sufficiently addressed. Existing assessments are based on scientific approaches such as lifecycle analysis, focusing on limited series of environmental parameters and conditions. A clear overview of potential environmental impacts from each renewable energy technology is needed to fill knowledge gap in this field to define practical pathways to tackle those potential impacts. One of IRENA’s short-term goals (as outlined in its 2013 Work Programme) aims at broadening understanding of socio-economic variables in face of large-scale deployment of renewable energy technologies, as well as undertaking in-depth analysis of potential 1 environmental impact from each technology, with particular attention to off-grid applications which are expected to help increase access to electricity in rural areas in the coming decades. In consideration of environmental impact, attention should be given to not only scientific assessments but also public understanding and perception of renewable energy technologies as public acceptance is an absolute pre-requisite to ensure success when integrating renewables as energy generation alternatives. II. Objectives and scope of the work Even though renewable energy can support to mitigate adverse environmental impacts related to conventional energy production, it is important to pinpoint that their large-scale development might also generate negative impacts and externalities. As the IRENA’s mandate defines, the “sustainability” of renewable energy technologies should be pursued hand in hand with the “renewability” of the technologies. The integration of renewable energy technologies into the energy system should firstly ensure fulfilment of sustainability criteria, satisfying standards of environmental quality and preventing environmental harms associated to the deployment of technologies. Renewable energy technologies, let alone conventional energy generation technologies, come with environmental trade-offs that must be acknowledged and appropriately addressed at different stages of their lifecycle – from extraction of materials, through manufacturing and project implementation, to end-of-life treatment. Environmental impact can vary significantly not only among technologies but also different geographically specific aspects such as local land use, infrastructures, social and cultural values, maturity of civil society, economic parameters and regulatory framework. An integrated consideration or assessment of all these components is thus required to ensure successful deployment of renewable energy technologies. Furthermore, it is also important to recognise potential difference in environmental impact between on-grid and off-grid applications of the same technologies. Off-grid renewables have potential to fill the demand-supply gap in the form of distributed generation and can supplement the grid supply for achieving rural electrification goals. However, due to their decentralised nature, off-grid applications may face more difficulties in controlling environmental impacts such as those related to end-of-life treatment of equipment and components. This request for proposal aims to build up a solid, comprehensive foundation of state-of-art knowledge on environmental impact and related activities which serves as basis for the projects under the 2013 Work Programme and future IRENA activities in this area. It should also serve for helping policy makers and project developers understand environmental impact and the issue of public acceptance as a signpost to overcome potential barriers to deployment. The main objectives of this assignment include: 2 III. Obtaining a comprehensive overview of what environmental and related impact and trade-offs exist in relation to large-scale deployment of each renewable energy technology at all the stages of its lifecycle (e.g. extraction of materials, manufacturing, project implementation, end-of-life treatment), including the identification of diverse – both scientific and perceptive – parameters which affect the understanding and evaluation of impact; Identifying “hot spots” among diverse potential impact areas where IRENA and member states need to pay a particular attention in order to consider their strategies for large-scale renewable energy deployment; Identifying existing good practices, efforts, tools and methods aiming to cope with environmental trade-offs, mitigate impacts and/or improve public acceptance, which member states can learn from and can be transferred; and Compiling recommendations to member states and relevant stakeholders as well as for the future work by IRENA in this area. Tasks and deliverables Task elements The consultant firm in charge of this assignment will be responsible of delivering a report which consists of the following elements to fulfil the above objectives: Element 1: State of the art of environmental and related impact and trade-offs from each renewable energy technology throughout its lifecycle The consultant firm is expected to provide a detailed overview (including a matrix) of key environmental and related impacts and potential trade-offs which large-scale deployment of renewable energy technologies may cause throughout their entire lifecycle (e.g. from extraction of materials, through manufacturing and project implementation, to end-of-life treatment). The environmental impacts from the technologies and infrastructure that support the deployment of renewable energy technologies (e.g. energy storage, electricity grid) should also be taken into account. Such an overview should be provided according to each technology type of at least the following categories: solar (PV, thermal and thermo-electric), wind (on- and off-shore), hydro (large- and small-scale), ocean, geothermal and biomass (for power, heating and transport). In particular, potential environmental impacts and trade-offs from off-grid applications of each technology type have to be clearly identified in a comparable way with those from on-grid applications. Since the impacts from the large-scale 3 deployment of biomass and large hydropower have been well experienced and recorded in the last decades, the study should focus on future potential impacts. Element 2: Identification of each renewable energy technology’s “hot spots” among environmental and related impact and trade-offs The consultant firm is expected to provide a list of “hot spots” and their detailed explanations according to each technology type where they lead to potentially significant barriers to renewable energy deployment and IRENA and member states need to focus their strategies for reducing risks and improving public acceptance as well as advance impact assessment. The understanding of hot spots may be based on the collection and analysis of existing understanding, perception and findings on the impact (including actual case studies that faced difficulties in promoting renewable energy due to proven, perceptive or potential impact), as well as existing impact measurement approaches and results. The selection of hot spots should be based on clear, impartial criteria. The hot spots may differ according to the parameters identified in Element 1 and should be presented in a way to take them into account. Element 3: Identification of practices and support measures to overcome difficulties in renewable energy deployment brought on by environmental impact and trade-offs The consultant firm is expected to identify good practices which successfully provided solutions to environmental impact or trade-offs and gained public acceptance to renewable energy technologies and to draft at least five case studies. The firm shall also collect existing governmental and non-governmental efforts to mitigate the issues and conflicts including the provision of strategies, stakeholder dialogues, tools and assessment methodologies. The lessons from good practices and efforts should be extracted and synthesised in a manner which can be transferred to member states and relevant stakeholders. If relevant, practices and efforts for raising public acceptance to conventional energy technologies may also be referred. Element 4: Provision of recommendations to shape the future IRENA work Based on all the work elements previously performed, the consultant firm is expected to provide a set of recommendations and strategic actions addressed to member states, project developers and other relevant stakeholders on how to address environmental impact and trade-offs and improve public acceptance of renewable energy technologies. The recommendations should also address where IRENA can focus its efforts in this area in coming years. 4 The areas of consideration include knowledge gaps to fill, dialogue with stakeholders, analysis of effective policy instruments, improvement in communications and knowledge sharing and advancement in impact assessment methods, among others. Particularly, since it is important for IRENA to foster and lead engagement of key stakeholders in this area, the consulting firm is expected to include in the recommendations a list of stakeholders selected based on sound criteria (including academic experts, civil society, manufacturers, project developers and investors) as well as a plan of future engagement and dialogue. Deliverables and timeline The consultant firm shall provide a report with publishable quality which comprises of all outputs and results derived from the tasks performed for the Elements 1-3 outlined above. Separately, the firm shall deliver a paper containing recommendations and strategic actions to be taken by IRENA, member states and other stakeholders as defined in the Element 4. It is expected that the consultant firm will achieve the objectives of this assignment with the delivery of following items: 1. Develop a work plan and a structure of the report approved by IRENA; 2. Deliver a draft report (expected 70-100 pages) which results from the Elements 1, 2 and 3 and are approved by IRENA; 3. Deliver a draft of the recommendations (expected 10-15 pages) defined as the Element 4 by the middle of the fourth month and approved by IRENA; and 4. Deliver the final report and recommendations that reflect IRENA’s final feedback to the drafts and are approved by IRENA. IV. Required profile We are seeking a consulting firm with substantive proven experience and capacity to provide the required contents and analysis as outlined above. In particular, the firm is expected to have: In-depth understanding on renewable energy technologies and projects, particularly their technical aspects including equipment manufacturing, project planning and implementation, and end-of-life management; Experience in the use of methodological tools to assess lifecycle-wide impact related to the development and deployment of energy technologies; Good understanding of environmental and social issues surrounding energy generation, both renewable and conventional; Have an extensive network with relevant stakeholders such as governments, researchers, NGOs and project developers in different regions around the world that enables them to identify state of the art of the subject and interesting cases and insights; 5 V. Fluency in English, written and spoken; Skilled at producing visual materials. Terms of payment Payment upon on-time delivery of the above deliverables to IRENA will be as follows: Expected date of delivery (from the time of signing the contract) Payment (% of the total amount) 1. Develop a work plan and a structure of the report approved by IRENA; 15% 2. Deliver a draft report (expected 70-100 pages) which results from the Elements 1, 2 and 3 and are approved by IRENA; 35% 3. Deliver a draft of the recommendations (expected 10-15 pages) defined as the Element 4 by the middle of the fourth month and approved by IRENA; and 50% 4. Deliver the final report and recommendations that reflect IRENA’s final feedback to the drafts and are approved by IRENA. VI. Criteria for technical evaluation of offers In order to assess best value for money, the technical evaluation of the RFP will be based on: Criteria 1. Past experiences in relevant areas: Track record that proves capability to extract relevant information needed for the tasks and to understand technical issues related to environmental impact from renewable energy technologies. – Provide samples of relevant past work over the last 3-5 years. Weighting (%) 20 2. Quality of the proposal in approaching environmental impact from large-deployment of renewable energy technologies: How professional and innovative the approach in which the consulting firm proposes for identifying and compiling a wide range of environmental impacts. – Provide a work plan of 3-5 pages. 20 3. Ability to identify and present good practices and policy measures around the world: How extensive network the consulting firm has and exercises to obtain relevant, quality information in a short period of time. How attractively the firm can summarise and present such information. 15 6 4. Ability to benchmark and identify “hot spots”: How proficient the consulting firm is in benchmarking different environmental aspects and identifying material issues and risks. 15 5. Ability to develop recommendations and strategies: How experienced the consulting firm is in providing organisations with strategic advice and how well received and applied by clients. 15 6. Team quality: Composition, qualifications and experiences of team – Provide CVs of at least 3 experts, whom you propose to undertake the tasks. Minimum qualification: with one at least 7 year and others at least 2 year experience of working with international organisations in the related field. Indicate your management and implementation plan. 15 7
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