Open call for a consultant to provide an analysis on the topic of coal to gas conversions

Za Zemiata (CEE Bankwatch Network) is looking for a consultant to provide an analysis on the topic of coal to gas conversions and more specifically on their economic viability.

As part of its work, Bankwatch focuses on the phase-out of fossil fuels and specifically on ensuring that no public funding is spent on fossil-fuel-related projects. Bankwatch is also supporting this phase-out through a just energy transition which takes into consideration people and the environment. Currently we are observing an attempt by some European countries to exit coal and set coal –phase-out dates. While we have been campaigning for this for years and welcome this, we have also noticed the positioning of gas as the so-called ‘cleaner’ alternative to coal. Despite the ongoing energy crisis (excacerbated by the Russian invasion of Ukraine) having sped up the transition in some ways, a concerning amount of false solutions are being offered as alternatives to coal. One of these false solutions is the ‘decarbonisation’ of coal-fired power plants through a switch to gas: the coal to gas conversion. 

In Bulgaria, there is a risk that coal-to-gas conversions may be used as a pretext to keep former coal-fired power plants up and running whilst still polluting. Fossil gas, despite having lower carbon emissions than coal, is still a dirty energy source and should not be a solution to the coal phase-out. In addition to that, it is unclear what the economic justification for this would be, as the cost of renewables continues to decrease, making the transition to renewables a more economically viable solution.  

In this context, this study should consider the long-term economic impacts of the conversion of coal-fired power plants to gas power plants. The study will be used to advocate in front of authorities and investors that real clean solutions should be sought in the transformation of the energy sector, rather than a switch to another polluting fossil fuel which we will again need to phase out in order to achieve EU climate targets.  

 Subject of the proposal 

The study should briefly examine the current situation (trends) related to coal-to-gas conversion  in Bulgaria and then provide an in-depth analysis of the potential long-term  economic impact of converting coal-fired power plants to gas power plants.  

The objective of the study is to serve as an advocacy tool to inform stakeholders of the disadvantages of a medium/long-term gas lock-in which is currently a risk due to the plans for a transition from coal to gas. Despite only one coal-fired power plant in Bulgariah aving formally submitted an investment proposal for such a conversion, we have had indications from several others that a switch to gas is being considered. We are hoping to use this study as a tool to help inform decision makers on the costs, both financial and to the environment, and the long-term implications of such projects, and deter them from continued investments in gas.  

The information should be collected from public sources – information on coal and gas power plants, reports; direct contact with stakeholers where necessary (by email or online) with the support of Za Zemiata.  

The consultant will be responsible for collecting the information and drafting the study and is expected to produce two drafts and a final version. Za Zemiata and Bankwatch staff will provide comments on the drafts and will be responsible for the proofreading, translation, design and distribution of the publication. The study will be published, and the consultant should be willing to be mentioned publicly as author of the study. Bankwatch will produce a shorter briefing paper for policymakers and a wider audience. Based on the study, Bankwatch will also produce two blog posts. 

The study is expected to be around 30 pages, written in English.  

An indicative format for the study is provided below: 

1. Executive summary 
2. Introduction 
3. Overview of the current planned conversions in Bulgaria 
4. Analysis of the impact of coal-to-gas conversion in Bulgaria
   – Economic impact and the potential implications of a gas lock-in in the long-term, considering that gas will need to be phased out to be in line with the EU Green Deal and climate targets
   – Comparison with the economic impact of a conversion to renewables  
5. Recommendations 
   – Showcasing the benefits from replacing fossil fuels with energy from renewable sources, rather than investing in a conversion to gas 

Timeline 

Budget 

EUR 4 800  

Eligibility 

Experts in the field of sustainable energy with professional experience in engineering and/or energy policy is welcomed. A good knowledge of the heating sector is necesary.  

Excellent knowledge of English is required.  

How to apply 

Applicants should send their offers to ventzeslava.kojouharova@bankwatch.org by 14 July. 

The offer should contain: 

1. CV highlighting the required qualifications and experience 
2. Application consisting of technical and financial elements. The technical elements comprise a max 2-page outline proposal for the study. The financial elements comprise the financial offer including VAT.  
3. Examples of similar previous work are welcome in support of the application (but not mandatory).  
4. Signed statement certifying that the candidate does not fall into any situation that is grounds for exclusion from participation in the procurement (according to Bankwatch’s internal procedures): 

Candidates will be excluded from participation in a procurement procedure if: 

• they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning these matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations; 
• they have been convicted for an offence concerning their professional conduct by a judgement which has the force of res judicata; 
• they have been guilty of grave professional misconduct proven by any means justifiable; 
• they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country where the contract is to be performed; 

• they have been the subject of a judgement which has the force of res judicata for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the Communities’ financial interests; 
• they are currently subject to an administrative penalty referred to in section 2.3.5 of the Practical Guide to contract procedures for EC external actions: 

Without prejudice to the application of penalties laid down in the contract, candidates or tenderers and contractors who have made false declarations, have made substantial errors or committed irregularities and fraud, or have been found in serious breach of their contractual obligations may be excluded from all contracts and grants financed by the Community budget for a maximum of five years from the date on which the infringement is established, as confirmed following an adversarial procedure with the contractor. That period may be extended to 10 years in the event of a repeated offence within five years of the above-mentioned date. Tenderers or candidates who have made false declarations, have committed substantial errors or irregularities and fraud, may also be subject to financial penalties representing 2% to 10% of the total estimated value of the contract being awarded. Contractors who have been found in serious breach of their contractual obligations may be subject to financial penalties representing 2% to 10% of the total value of the contract in question. That rate may be increased to 4% to 20% in the event of a repeat infringement within five years of the above-mentioned. Where the award procedure proves to have been subject to substantial errors, irregularities or fraud, the Commission shall suspend the procedure and may take whatever measures are necessary, including the cancellation of the procedure. Where, after the award of the contract, the award procedure or the performance of the contract prove to have been subject to substantial errors, irregularities or fraud, the Commission may, depending on the stage reached in the procedure, refrain from concluding the contract or suspend performance of the contract or, where appropriate, terminate the contract. Where such errors, irregularities or fraud are attributable to the contractor, the Commission may in addition refuse to make payments, may recover amounts already paid or may terminate all the contracts concluded with this contractor, in proportion to the seriousness of the errors, irregularities or fraud. The purpose of suspending the contract is to verify whether presumed substantial errors and irregularities or fraud have actually occurred. If they are not confirmed, performance of the contract will resume as soon as possible. A substantial error or irregularity is any infringement of a provision of a contract or regulation resulting from an act or an omission which causes or might cause a loss to the Community budget. 

Selection 

The selection criteria will consist of: 

1) Professional capacities based on the documents presented;  

2) Quality of project proposal and alignment with requirements to consider only sustainable energy forms; 

3) Financial offer; 

Applicants will be informed about the selection results by 19 July.