BACKGROUND

The ASEAN Centre for Energy (ACE) is an intergovernmental organisation that independently represents the 10 ASEAN Member States’ (AMS) interests in the energy sector. The Centre serves as a catalyst for the economic growth and integration of the ASEAN region by initiating and facilitating multilateral collaborations as well as joint and collective activities on energy. It is guided by a Governing Council composed of Senior Officials on Energy from each AMS and a representative from the ASEAN Secretariat as an ex-officio member. Hosted by the Ministry of Energy and Mineral Resources of Indonesia, ACE office is located in Jakarta.

Part of the efforts to fulfil its function as a regional centre of excellence that builds a coherent, coordinated, focused and robust energy policy agenda and strategy for ASEAN, ACE conducts joint studies, policy dialogues and capacity buildings for ASEAN Member States to support the implementation of the ASEAN Plan of Action for Energy Cooperation (APAEC) 2016-2025.

APAEC 2016 – 2025 is the energy cooperation blueprint for enhancing energy connectivity and market integration in ASEAN to achieve energy security, accessibility, affordability, and sustainability for all AMS. The regional blueprint aims to reduce the energy intensity of the region by 32% by 2025 compared to 2005 level as one of key targets. One of its programme areas is Energy Efficiency and Conservation (EE&C), which has an outcome-based strategy (OBS) 3 – Strengthen Sustainability of Energy Efficiency in Buildings. The OBS focuses on sustainable EE policies and technologies in the building sector through developing EE building and cooling roadmaps and sharing information on EE buildings initiatives.

The Asia Low Carbon Buildings Transition (ALCBT) project is a five-year initiative, running from July 2023 to June 2028, funded by the International Climate Initiative (IKI) of the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The project is led by the Global Green Growth Institute (GGGI) in consortium with the ASEAN Centre for Energy (ACE), Energy Efficiency Services Limited (EESL) of India, and HEAT International of Germany. Focusing on Cambodia, India, Indonesia, Thailand, and Vietnam, the ALCBT project aims to catalyze nationwide transitions towards low carbon buildings.

In line with these objectives, ACE is undertaking an assessment of the Energy Service Company (ESCO) and on-bill financing market readiness in ASEAN. This assessment aims to provide a comprehensive understanding of the current landscape, identify barriers and opportunities, and inform policy recommendations to accelerate the adoption of energy efficiency measures in buildings.

To effectively conduct this study, ACE seeks to engage a qualified consultant with expertise in energy efficiency financing, ESCO business models, and on-bill financing mechanisms. The consultant will be responsible for conducting in-depth research, stakeholder consultations, and analysis to deliver a comprehensive report that will guide future interventions and policy decisions in the ASEAN region.

DURATION OF ENGAGEMENT

The consultant awarded with the assignment will be hired from February – September 2025, obliged to work within the required deadlines, and available for calls or meetings, virtually and in person, as needed.

OBJECTIVES

The overall objective of this consultancy is to conduct an in-depth assessment of the ESCO market and on-bill financing readiness in the ASEAN region, with a further focus on Cambodia, Indonesia, Thailand, and Viet Nam. The expected output will be a full report of ESCO Market Assessment in ASEAN, with dedicated chapters for Cambodia, Indonesia, Thailand, and Viet Nam.

Specific objectives include:

• To review existing policies, regulations, incentives, and market conditions related to energy efficiency financing and ESCO business models for energy-efficient and low-carbon building in 10 ASEAN countries.
• To conduct a comprehensive and detailed assessment of the current ESCO market landscape in Cambodia, Indonesia, Thailand, and Vietnam.
• To identify enabling factors and barriers for ESCO financing uptake and market development in Cambodia, Indonesia, Thailand, and Vietnam.
• To evaluate the readiness of key stakeholders, including government agencies, financial institutions, and building owners, to engage with and support ESCO projects in Cambodia, Indonesia, Thailand, and Viet Nam.
• To assess international best practices, experiences, and case studies relevant to in Cambodia, Indonesia, Thailand, and Vietnam on the feasibility of the ESCO business model in government, commercial, and residential buildings.
• To conduct a readiness assessment for On-bill Financing (OBF) implementation in Cambodia, Indonesia, Thailand, and Vietnam, identifying potential opportunities and challenges.
• To develop recommendations for enhancing ESCO operations and market growth in the ASEAN region, with tailored strategies to identify potential EE pilot project pipelines in the building sector for Cambodia, Indonesia, Thailand, and Viet Nam.

SUBMISSION OF APPLICATION

The proposal should be submitted to [email protected] and cc [email protected] by 15 January 2025 (GMT+7).

Technical and Financial proposals are to be submitted as two (2) separate electronic files. The proposals are to be submitted in pdf format.

Please indicate the subject heading: Proposal for ESCO Market Assessment.

BACKGROUND

The ASEAN Centre for Energy (ACE) is an intergovernmental organisation that independently represents the 10 ASEAN Member States’ (AMS) interests in the energy sector. The Centre serves as a catalyst for the economic growth and integration of the ASEAN region by initiating and facilitating multilateral collaborations as well as joint and collective activities on energy. It is guided by a Governing Council composed of Senior Officials on Energy from each AMS and a representative from the ASEAN Secretariat as an ex-officio member. Hosted by the Ministry of Energy and Mineral Resources of Indonesia, ACE office is located in Jakarta.

Part of the efforts to fulfil its function as a regional centre of excellence that builds a coherent, coordinated, focused and robust energy policy agenda and strategy for ASEAN, ACE conducts joint studies, policy dialogues and capacity buildings for ASEAN Member States to support the implementation of the ASEAN Plan of Action for Energy Cooperation (APAEC) 2016-2025.

APAEC 2016 – 2025 is served as the blueprint for enhancing energy connectivity and market integration in ASEAN to achieve energy security, accessibility, affordability, and sustainability for all AMS. These provide the regional blueprint for reducing the energy intensity of the region by 32% by 2025. One of the main program areas is Energy Efficiency and Conservation (EE&C). The EE&C program area has an outcome-based strategy (OBS) that is: OBS 5 – to advance Energy Efficiency and Energy Management in industry, which focuses on promoting energy management in industry to increase competitiveness and reduce energy consumption.

The industry sector accounted for 39.1% of total final energy consumption in the region in 2020, well above the other sectors. This number is on course to be tripled by 2050. Characterised as a hard-to-abate sector due to its fossil fuel-dependent operations, this sector requires strategies specifically tailored to decarbonise. For these reasons, implementing energy efficiency measures in the industrial sector is essential for near- and mid-term strategies before fuel or technological substitutes become viable in the future, further accelerating energy transition while enhancing energy security.

However, adoption of energy-efficient technologies and measures is often limited by a wide range of barriers, including lack of awareness, limited access to finance, regulatory challenges, and perceived risks associated with new investments.

PROJECT DESCRIPTION

In 2023, Green Climate Fund and Korea Development Bank have signed a funded activity agreement (FAA) for a programme called “Supporting Innovative Mechanisms for Industrial Energy Efficiency Financing in Indonesia with Lessons for Replication in other ASEAN Member States programme”.
The programme provides a package of innovative energy efficiency solutions including financial de-risking mechanisms, exploration of new energy service business models, development of a supportive regulatory framework, and technical assistance for industry sector in Indonesia. There are three main components of the programme:

1. Energy Efficiency Finance: provide backstopping credit risk of local FI’s own loan with GCF Credit Guarantee via local FIs
2. De-risking Mechanism: introduce Energy Saving Insurance (ESI) and ESCO financing structure through knowledge sharing, workshops, consultations, and capacity buildings
3. Technical Assistance for the Market Readiness: strengthen Local Financial Institutions’ capacity, provide technical advisory services for industry player, and develop regulatory frameworks.

ASEAN Centre for Energy (ACE) is an executing entity, providing technical assistance activities to execute component 2 and 3 of the programme mentioned above.

The programme starts from April 2024 and ends in April 2031.

DUTIES AND RESPONSIBILITIES

The urgency to address the pressing issue of climate change has prompted financial institutions to increasingly prioritise environmental and social aspects in their credit or lending transactions. This introduces a new dimension to existing risk management practices, which traditionally focus on various aspects such as market risk, operational risk, and credit risk.

Environmental and social aspects are integral components of the Environmental and Social Management System (ESMS), which guides companies on how to integrate internationally acknowledged standards, codes, and practices in minimising environment and social impacts into their core business activities. This ensures that their operations do no harm to the environment, thereby enhancing their position for securing financing support for their prospective projects in energy efficiency implementation.

To deliver this task, an Environment and Social (E&S) expert is required to assess whether the proposed projects adhere to environmental and social standards regulation and ensure the projects showcase the company’s commitment to promote sustainable development practices in industry sector. Initially, the consultant is expected to deliver the task as follows:

• Assess Environmental and Social (E&S) Risk Categorization. Reference can be made to IFC Performance Standard. The Consultant is expected to be engaged with ACE for one year with estimated projects to be assessed are 10 projects.
• Commitment to work closely with relevant stakeholders under close coordination with ASEAN Centre for Energy and Korea Development Bank

After completing the E&S risk categorization, there will be an opportunity to extend* the tasks to the following activities:

• Develop Environmental and Social Impact Assessment (ESIA) of the prospective projects to check compliance with both national and international standards
• Develop Environmental and Social Management Plan (ESMP) of the prospective projects to address the identified environmental and social impacts outlined in ESIA
• Identify stakeholders involved and affected by the projects or companies’ activities to develop stakeholder management plan
• Do the monitoring and reporting for the E&S risks and action plan implementation
• Expansion of E&S risk categorisation to more companies
• Any other works that may be required according to the ESMS

*Note: tasks extension is subject to the project’s requirement determined by ACE and KDB.

SUBMISSION OF APPLICATION

Please submit the proposal alongside your CV or Company Profile clearly stating qualification and previous experiences for similar assignment to email with the subject: “E&S Consultant_GCF-KDB Project”, to ACE’s Procurement Division ([email protected]) no later than 7 January 2025.

BACKGROUND

ASEAN Climate Change and Energy Project (ACCEPT) Phase 2 (RAS 21/0006) builds upon the successes of ACCEPT Phase 1, which concluded on 31 March 2022. This 48-month initiative, funded by the Norwegian Government through the Norwegian-ASEAN Regional Integration Programme (NARIP), represents a collaborative effort between the ASEAN Centre for Energy (ACE) and the Norwegian Institute of International Affairs (NUPI). The project is supported by a total grant of NOK 23,900,000.

ACCEPT Phase 2 is aligned with the objectives of the ASEAN Plan of Action for Energy Cooperation (APAEC) Phase 2: 2021-2025 and aims to enhance ASEAN Member States’ (AMS) readiness for the energy transition toward low-carbon energy systems. The project aspires to contribute to a future of carbon neutrality, advancing the energy-climate nexus by addressing key challenges and opportunities, building capacity, and fostering regional cooperation.

MID-TERM REVIEW

As stipulated in the Grant Agreement, a mid-term review of ACCEPT Phase 2 is required to assess the project’s progress against its objectives. This review will provide a critical evaluation of the project’s implementation, achievements, and areas for improvement to ensure its continued effectiveness and alignment with the agreed deliverables. To undertake this task, we are seeking the services of an experienced individual consultant or consulting firm with expertise in project evaluation, particularly in the fields of energy, climate or international development.

DURATION OF ENGAGEMENT

The contract duration is expected from 20 January to 31 March 2025, contingent on the Consultant’s proposed work plan. The timeline includes:

• 20 January 2025: Start-up meeting.
• January–March 2025: Engagement in project events and review activities.
• 20 March 2025: Submission of draft report.
• 31 March 2025: Final report submission.

REVIEW METHODOLOGY

The Consultant is expected to employ the following methods, with flexibility to propose additional approaches as necessary:

• Conduct a desk review of relevant project documents, including the grant agreement, activity reports, and selected outputs.
• Interview stakeholders, including project management, ASEAN Member States (AMS), donor representatives, and other relevant actors involved in the project.
• Participate in virtual project events, such as seminars or workshops, to observe implementation and stakeholder interactions.
• Identify the most significant outcomes, outputs, or issues through a review of past annual meetings and related activities.
• Tailor review questions to address emerging risks and propose recommendations for adaptive project management.

While the project outcomes may extend beyond the current project period, the review should assess interim progress and trajectory.

The Consultant is not expected to travel to ASEAN or Norway but may be invited to Jakarta to present findings in person, if necessary.

DELIVERABLES

The Consultant is responsible for producing the following deliverables:

1. Draft Report: A comprehensive draft of findings and recommendations, submitted for review at least two weeks before the final report deadline.
2. Final Report: A refined document (including an Executive Summary and annexes), to be submitted in Word and PDF formats.

The report should:

• Highlight key findings on project relevance, effectiveness, efficiency, impact, and sustainability.
• Provide actionable recommendations for the remaining project period and potential future phases.

The Consultant will also:

• Participate in a start-up meeting to present an updated technical proposal and align on a mutually agreed plan of action.
• Submit an inception report summarizing the agreed methodology and timeline.

PROPOSAL SUBMISSION

The Technical part of the proposal should include the following information:

• A brief account of the Consultant’s understanding of the needs of the assignment and past experience in undertaking similar work.
• A detailed work plan that specifies activities to be undertaken, methodology, resources to be utilised and timing.
• Staffing and management plan for the implementation of the mid-term review.
• CVs of all proposed personnel.
• Company Profile (if not an individual consultant).

The Financial part of the proposal should include the following information:

• Cost estimation specifying all direct and indirect costs, including but not limited to: Professional fees of expert(s) for completing all deliverables in unit cost and the number of hours/days, and miscellaneous charges, if applicable.

Submission of Application

The proposal, communication and queries related to the invitation to submit proposal shall be submitted in electronic copy (password protected) by no later than 5 January 2025 to: ASEAN Centre for Energy (ACE) c.q. ASEAN Climate Change and Energy Project (ACCEPT)

Email: [email protected] , [email protected]

Subject: Mid-term Review of the ASEAN Climate Change and Energy Project (ACCEPT) Phase 2

ACE reserves the right to invite shortlisted Consultants for further discussions or negotiations based on the evaluation of submitted proposals.