Planning

Panel of Technical Experts - Electricity Market Reform

  • Department for Energy Security & Net Zero

F01: Prior information notice (prior information only)

Notice identifier: 2023/S 000-022479

Procurement identifier (OCID): ocds-h6vhtk-03ec76

Published 2 August 2023, 2:35pm



Section one: Contracting authority

one.1) Name and addresses

Department for Energy Security & Net Zero

London

Email

mercedes.ekanem@energysecurity.gov.uk

Country

United Kingdom

Region code

UK - United Kingdom

Internet address(es)

Main address

https://www.gov.uk/government/organisations/department-for-energy-security-and-net-zero

one.3) Communication

Additional information can be obtained from the above-mentioned address

one.4) Type of the contracting authority

Ministry or any other national or federal authority

one.5) Main activity

General public services


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Panel of Technical Experts - Electricity Market Reform

two.1.2) Main CPV code

  • 71314000 - Energy and related services

two.1.3) Type of contract

Services

two.1.4) Short description

The Panel of Technical Experts (PTE) is an independent advisory group, members of which are appointed by government to advise on technical aspects of Electricity Market Reform. The role of the panel is a technical function and not a forum for policy commentary or for advising the government on its objectives for the capacity market or wider policy issues. They have a particular focus on providing scrutiny of the analysis in National Grid’s annual Electricity Capacity Report (ECR), which provides a recommendation on the target capacity for capacity market auctions. A report with their findings is published annually following the publication of the ECR and the Secretary of State’s decision on the target capacity.

We are considering appointing the following panel roles:

1) Economist

2) Mathematician, Econometrician, or Statistician

3) Operational Researcher, Decision or Management scientist

4) Electricity Industry Specialist

5) Capacity Adequacy or Electricity Demand Forecasting Expert

(note – this role is a new requirement replacing the Electrical Engineer/Physicist role of previous panels)

We will also invite one of the panelists to take on the extra responsibility of Chair in addition to the panel member role as advertised.

two.1.6) Information about lots

This contract is divided into lots: No

two.2) Description

two.2.2) Additional CPV code(s)

  • 09310000 - Electricity

two.2.3) Place of performance

NUTS codes
  • UK - United Kingdom

two.2.4) Description of the procurement

The Capacity Market secures the electricity capacity required to meet likely peak demand through annual auctions. National Grid Electricity System Operator provide advice to the Government on how much capacity to procure each year to meet energy security standards, accounting for a range of uncertainties - the Government then takes the final decision over how much capacity to procure. This may require trade-offs between different objectives, therefore it is essential that the impacts of different decisions are well understood. To facilitate this, National Grid’s advice is scrutinised by the independent Panel of Technical Experts (PTE) - leading external academic and industry specialists.

The PTE's role is to provide assurance that the analysis provided by National Grid in regard to the Capacity Market has been scrutinised by an independent body and there are no conflicts of interest that might skew the analysis - this is in addition to the Department's own assurance process. The PTE's independent and impartial technical scrutiny provide additional confidence to Government and industry that Government's decisions are informed by robust and up-to-date analysis that is fit for purpose.

The make-up of the PTE is intended to provide a range of professional analytical skills, bringing diverse experiences of the GB electricity market and technologies capable of contributing to electricity supply, from members who are independent in their own right.

Specialist skills and experience for each of the five panel members could include, but is not limited to:

1) The specialist role for an Economist is to have, for example: a background in applied microeconomics and experience of applied energy economics.

2) The specialist role of Mathematician, Econometrician or Statistician is to have, for example: experience of quantitative techniques to future decision-making and making decisions under conditions of uncertainty in the context of electricity markets in GB and beyond. 

3) The specialist role of Operational Researcher, Decision or Management Scientist is to have, for example: experience of applying quantitative techniques to model electricity markets, including the GB electricity markets, to inform future decision-making under uncertainty. 

4) The specialist role of Electricity Industry Professional is to have, for example: extensive and varied experience of working in the GB electricity industry and be able to provide a stakeholder’s perspective to panel discussions.  

5) The specialist role for an Capacity Adequacy or Electricity Demand Forecasting expert, is to for example: provide understanding of the GB electricity system and issues associated with meeting the physical challenges of the system operation both now and in the future. 

We would also expect the Chair to take on some additional tasks, for example coordinating report writing. An additional requirement for those applying for the position of chairperson will be knowledge of Chairing.

Further information about the outgoing panel can be found at the following webpage:

https://www.gov.uk/government/groups/electricity-market-reform-panel-of-technical-experts

two.2.14) Additional information

Expected contract value: £525,000.00 (exc. VAT)

Further information to be released accordingly.

two.3) Estimated date of publication of contract notice

4 September 2023


Section four. Procedure

four.1) Description

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes