CONTRACT NOTICE - UTILITIES

Section I: Contracting Entity

I.1)

Name, Address and Contact Point(s)

I.2)

Main activity or activities of the contracting entity

	Production, transport and distribution of gas and heat
	Electricity
	Exploration and extraction of gas and oil
	Exploration and extraction of coal and other solid fuels
	Water
	Postal services
	Railway services
	Urban railway, tramway, trolleybus or bus services
	Port-related activities
	Airport-related activities

Section II: Object of the Contract

II.1)

Description

II.1.1)

Title attributed to the contract by the contracting entity

Provision of an Energy Solution for Shetland Islands.

II.1.2(a))

Type of works contract

II.1.2(b))

Type of supplies contract

II.1.2(c))

Type of service contract

II.1.2)

Site or location of works, place of delivery or performance

Shetland Islands.

II.1.3)

This notice involves

A public contract
The setting up of a Dynamic Purchasing System
The establishment of a framework agreement

II.1.4)

Information on framework agreement (if applicable)

Framework agreement with a single operator
Framework agreement with several operators

Number of participants to the framework agreement envisaged

Duration of the framework agreement

Estimated total value of purchases for the entire duration of the framework agreement

Frequency of the contracts to be awarded

II.1.5)

Short description of the contract or purchase(s)

Scottish Hydro Electric Power Distribution (SHEPD) owns and operates the electricity network in the north of Scotland. This includes a discrete network for the Shetland Islands, which is currently not connected to the mainland electricity network, and as a result SHEPD acts as System Operator for the Shetland Islands. Of the 2 main electricity generators, Lerwick Power Station, in its current state, is nearing the end of its operational life and supply from Sullom Voe Power Station is not certain beyond 2017. The GB electricity and gas market regulator Ofgem has required SHEPD to conduct an open competitive tender process for a longer term energy solution for Shetland.

The new competitive process will be open to a range of participants and technologies, including those identified above. The competitive process is also open to smart, flexible, innovative and hybrid solutions to the extent they do not compromise security of supply and are able to help meet Shetland's evolving energy needs. This may include continued use of existing assets, and must also allow for the integration of the Northern Isles New Energy Solution (NINES) project. It is for the market to determine which technologies could be offered to meet the requirements for Shetland, and the competitive process will not be technology-specific. Demand side services, generators, storage facilities and other technologies and services will be able to participate in the competitive process, providing they are able to meet the requirements. We propose that all options for future energy solutions for Shetland which are paid for by SHEPD require to be submitted via the competitive process or future competitive processes

It is envisaged this will involve SHEPD entering into contracts with service providers for the provision of a combination of: (i) reliable availability and energy; (ii) intermittent energy; (iii) reduction of energy consumption; and/or (iv) additional services. Contracts for different services are likely to be for different durations. Once contracts are in place it is envisaged that the provision of output will be called off primarily in economic order to minimise cost to consumers, taking into account system requirements, stability and dynamics. It is envisaged that new regulatory arrangements will provide a mechanism for the recovery of the generation and balancing costs from all consumers in GB, rather than from those in the north of Scotland, as is currently the case.

Scottish Hydro Electric Transmission (SHET) has been assessing the need for a cable link between Shetland and mainland Great Britain, which would mean that Shetland would become part of the GB electricity system. The assessment has been prompted by a connection request for Viking Wind Farm. As well as exporting wind generation, a transmission cable would be capable of importing power to Shetland from Great Britain when required to meet demand from island customers.

Given the uncertainty of timescales, and the fact that a single cable circuit is currently considered to be the most economic cable option, a new energy solution is still required to maintain a secure electricity supply for the islands. Standby arrangements would still need to be available during planned and unplanned outages and energy providers / reducers on Shetland will have to be capable of operating with a transmission link in place, if they choose to do so. Parties interested in participating in the competitive process should consider that in the event that a transmission link is installed, the provision of energy under any resulting contracts may be displaced by energy provision from elsewhere.

A public consultation was undertaken between October 2014 and February 2015 to raise awareness and promote discussion in Shetland and elsewhere about the islands' energy needs and how they can best be met in the future.

A more detailed description of the proposed contracting strategy provided in the PQQ documentation.

This is a voluntary OJEU contract notice as the services being procured under the contracts to be entered into with SHEPD are for Part B services for the purposes of Directive 2004/17/EU.

II.1.6)

Common Procurement Vocabulary (CPV)

II.1.7)

Contract covered by the Government Procurement Agreement (GPA)

II.1.8)

Division into lots

one lot only

one or more lots

all lots

II.1.9)

Will variants be accepted

II.2)

Quantity or Scope of the Contract

II.2.1)

Total quantity or scope

II.2.2)

Options

Provisional timetable for recourse to these options

Number of possible renewals

In the case of renewable contracts, estimated time frame for subsequent calls for competition:

Section III: Legal, Economic, Financial and Technical Information

III.1)

Conditions relating to the contract

III.1.1)

Deposits and guarantees required

See Pre-Qualification Questionnaire.

III.1.2)

Main Terms of financing and payment and/or reference to the relevant provisions

III.1.3)

Legal form to be taken by the grouping of suppliers, contractors or service providers to whom the contract is to be awarded

Individual Companies, Joint Ventures, Partnerships or or other incorporated or unincorporated entities approved by SHEPD as applicable.

III.1.4)

Other particular conditions to which the performance of the contract is subject

III.2)

Conditions for Participation

III.2.1)

Personal situation of suppliers,contractors or service providers

See Pre-Qualification Questionnaire.

III.2.2)

Economic and financial capacity

III.2.3)

Technical capacity

III.2.4)

Reserved contracts

The contract is restricted to sheltered workshops
The execution of the contract is restricted to the framework of sheltered employment programmes

III.3)

Conditions Specific to Service Contracts

III.3.1)

Is provision of the service reserved to a specific profession?

III.3.2)

Will legal entities be required to state the names and professional qualifications of the personnel responsible for executing the contract?

Section IV: Procedure

IV.1)

Type of Procedure

Open		Restricted
Negotiated		Have candidates already been selected?	No

IV.2)

Award Criteria

IV.2.2)

An electronic auction will be used

IV.3) Administrative Information

IV.3.1)

Reference number attributed to the notice by the contracting entity

15.0292

IV.3.2)

Previous publication concerning the same contract

Periodic indicative notice
Notice on a buyer profile

Other previous publications

IV.3.3)

Conditions for obtaining contract document and additional documents

IV.3.4)

Time-limit for receipt of tenders or requests to participate

IV.3.5)

Language or languages in which tenders or requests to participate can be drawn up

IV.3.6)

Minimum time frame during which the tenderer must maintain its tender 

IV.3.7)

Conditions for opening tenders

Section VI: Complementary Information

VI.1)

Indicate whether this Procurement is a Recurrent one and the estimated timing for further notices to be published

VI.2)

Does the contract relate to a Project/Programme financed by Community Funds?

VI.3)

Additional Information

This is a voluntary OJEU contract notice as the services being procured under the contracts to be entered into with SHEPD are for Part B services for the purposes of Directive 2004/17/EU.

VI.4)

Procedures for appeal

VI.4.1)

Body responsible for appeal procedures

Body responsible for mediation procedures

VI.4.2)

Lodging of appeals

VI.4.3)

Service from which information about the lodging of appeals may be obtained

VI.5)

Dispatch date of this Notice

ANNEX B

Information About Lots

1)

Short Description

Source of energy that can be available all of the time to respond to the needs of the customer across the Shetland system as a whole.

2)

Common Procurement Vocabulary (CPV)

3)

Quantity or scope

4)

Indication about different contract dates

5)

Additional Information about lots

ANNEX B

Information About Lots

1)

Short Description

Sources of energy that can provide energy some of the time to meet demand on Shetland, but cannot be relied upon to be available when required by the System Operator.

2)

Common Procurement Vocabulary (CPV)

3)

Quantity or scope

4)

Indication about different contract dates

5)

Additional Information about lots

ANNEX B

Information About Lots

1)

Short Description

Consumers of energy in Shetland could offer either to reduce their demand capacity at peak times to help manage the system; or to reduce their long-term energy consumption.

2)

Common Procurement Vocabulary (CPV)

3)

Quantity or scope

4)

Indication about different contract dates

5)

Additional Information about lots

ANNEX B

Information About Lots

1)

Short Description

A range of particular requirements to manage the island system — including the ability to respond quickly to changes in demand and to restore power in the event of a loss of all generation.

2)

Common Procurement Vocabulary (CPV)

3)

Quantity or scope

4)

Indication about different contract dates

5)

Additional Information about lots