ELECTRICTY MARKET INTEGRATION & INTERCONNECTION IN SOUTH AMERICA

Notice Date

August 31, 2000

Contracting Office

DOE/National Energy Technology Laboratory, P.O. Box 10940, MS 921-107, Pittsburgh, PA 15236-0940

ZIP Code

15236-0940

E-Mail Address

mohn@netl.doe.gov (mohn@netl.doe.gov)

Description

SUBJECT: ELECTRICITY MARKET INTEGRATION AND INTERCONNECTION IN SOUTH AMERICA. DESC: The U.S. Department of Energy's National Energy Technology Laboratory (NETL), Pittsburgh, PA intends to award a purchase order on a sole-source basis to The Comision de Integracion Electrica Regional (CIER). PROJECT OBJECTIVES/DESCRIPTION: The purpose of this procurement is to support a regional study effort which reviews the opportunities and barriers between the ten (10) major countries in South America to reach regional market integration and interconnection of their electric systems. The study will focus on the technical, operating and commercial standards regulating power transactions, power dispatch, and interconnections and it will incorporate participation and input from the CIER (Comision de Integracion Electrica Regional) members, governments, regulatory authorities, power utilities and private development companies of South America, as well as the World Bank and USDOE. The study is divided into two phases. The first phase will examine the conditions prevailing in the South American electricity sector and the second phase will provide recommendations as to how to promote regional efficiency and increase regional interconnections. SCOPE OF WORK: Phase I will be devoted to the gathering and analysis of basic data related to the technical and operational procedures currently used in the different countries of South America for electricity exchange, as well as to the institutional/regulatory approaches. It will include an analysis of the issues and bottlenecks that may have hampered active development of electricity trading activities within the region. Phase II, in the area of technical and operational procedures, will identify possible harmonization and compatibilities in the various nations' standards and procedures for the operation of electrical systems. It will propose rules related to the operation of international interconnections in normal and emergency conditions. In the area of regulatory aspects it will identify possible options among regulatory or policy issues related to the operation of international interconnections and recommend a minimum common set of rules for ensuring reliability in the functioning of major interconnected systems along with recommendations on rules, procedures and economic transactions methodology to be applied to transmission ancillary services. DELIVERABLES:1 Report Package on current state (as of September 30, 2000) of the Study on Market Integration and Interconnection in South America. This report package is to include the results of the workshop held in Rio de Janeiro on May 24-25, 2000, i.e., all of the presentations made by the speakers (government and private sector representatives) during the workshop (in electronic form); the general report of the results and recommendations for Phase I of the study (in electronic form and hardcopy); and the proposed outline for Phase II of the study. 2.Proceedings of working session to be held in conjunction with CIER's 2000 Congress in Buenos Aires, Argentina (November 26-30, 2000). During this working session CIER's Executive Board and members of the Working Group (of which DOE is a member), will review the draft results of Phase II of the study. There will also be a presentation during the Congress sessions where the results of Phase I as well as the draft results of Phase II will be presented to the congress attendees. The objective of this information dissemination on the study is to obtain feedback and critical support from the South American decision-makers. The feedback will be included in the final analysis of the study. 3. Report Package on final results of the Study on Market Integration and Interconnection in South America. This report package will include the results of the workshop to be held in a place to be determined in April 2001 (i.e., all of the presentations made by government and private sector representatives during the workshop); and the general report of the results and recommendations for Phase II of the study (in electronic form (PowerPoint and/or Word) and hardcopy) including strategy for implementation of the recommendations. This purchase order is being issued to The Comision de Integracion Electrica Regional (CIER) because it is a non-governmental organization which is comprised of the electric utilities and non-profit organizations linked with the national electric sectors of the ten South American countries ( Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela). CIER was created on July 10, 1964, on the basis of a proposition approved during the First Regional Electrical Integration Congress, then held in Montevideo, as an initiative of the Uruguayan Electric Sector Authorities. The Commission became operational in 1965. Since its beginnings, CIER has gained the support of the South American electric industries, and clearly has reflected the strong need of collaboration among them. CIER is comprised of experienced professionals who have years of demonstrated success in establishing communication at the highest levels of legislative and energy organizations within Latin America. These individuals performance records that are recognized as outstanding and create confidence among the potential customer population. The main objective of this non-profit international organization is to promote and encourage the integration of the regional electric sectors, through greater assistance and technical cooperation of electric power utilities and governmental organizations in the Member Countries; transfer of knowledge, information, experiences and documentation in technical, economic and legal fields; projects development in a regional scope, especially considering the feasibility of electric international interconnections; orientation and coordination of general interest activities for utilities and organizations, including research and development fields; establish general specifications and technical standards which area accepted in all Member Countries; promotion of regional statistic uniformity, strengthened through the operation of an up-to-date Data Bank; and the promotion of electric power regional utilization with special concern about environmental problems. CIER's headquarters in Montevideo, Uruguay holds an important information and documentation center, whose evolution to a computerized Data Bank is being achieved. At the present time, CIER has five areas of the power industry located within this data base (generation, transmission, distribution, commercialization, and corporate) in which the following technical topics are covered: planning and environment, energy movement and transactions, projects and construction works, operation and maintenance, distribution engineering, electric energy commercialization, finance, administrative business and legal and regulatory affairs. In addition, there are specific working groups established within CIER to develop specialized matters, such as the bulk energy markets and interconnections study for South America. The activities which are proposed in this procurement will be used to promote the development of one or several interconnected, cooperative electricity markets, which could translate on business opportunities for U.S. electric private sector companies interested in investing in the region . It will also provide continuity to the DOE effort which was established at the conference, "Integration of Electricity and Natural Gas in the Southern Cone" which was held in Montevideo, Uruguay in 1997. CIER is a organization that is uniquely situated and qualified to undertake this work on behalf of DOE. CIER has a pivotal position in South America as a renowned organization which has the access to power industry data throughout the electricity sector of Latin America and sources of information that is unavailable to the DOE and within the United States. There is no known competing organization that can bring to DOE the same technical and policy level of experience, contacts, and capabilities that are so directly capable of achieving the DOE goals within the South America region. In addition, DOE knows of no other entity which can conduct such an activity and produce a quality study within the time frames prescribed. This request is considered to be sole source to The Comision de Integracion Electrica Regional (CIER). Therefore, no solicitation will result from this announcement. This award shall be made using simplified acquisition procedures. Request for information should be addressed to Mr. Robert L. Mohn, FAX 412-386-4963.

Record

Loren Data Corp. 20000905/SPMSC014.HTM (W-244 SN492130)