The training will provide the participants with the background for developing the institutional and human capacity to participate in, as well as design, manage, and operate a power trading entity.
Classroom-style lectures are to be delivered by highly experienced instructors, supplemented by hands-on exercises that emphasize development of skills and knowledge in the functional operations of power trading. Emphasis should be on providing hands-on activities including role play, class exercise, review of PPAs, PSAs, demonstration of bid submission to clearance on power trading software.
Training will supply participants with proficiency in the following topics:
- The evolution of power trading as a separate entity in the power sector, the various roles played by power traders, basic guidelines for power trading, propriety trading vs. portfolio optimization, arbitrage
- Market participants & their role: brokers, traders, dealers, market makers, liquidity providers, marketers, wholesale merchants, investment banks, traders, power exchange, and grid system operator
- Setting up a power trading entity:
- Legal framework for operation of a power trading entity
- Procedures and terms and conditions for granting of trading license
- Statutory compliance for traders
- Human resources and infrastructure requirements for setting up of a power trading entity
- Net worth and working capital considerations and requirements
- Short term, long/medium term power purchase and sales
- Power purchase/sales agreements: major contractual, financial and commercial provisions and their significance
- Scheduling, billing, energy accounting, settlement, and bidding on power exchanges and over-the-counter trade
- Tariff models for competitive bidding processes, review of the existing tariff models
- Identifying and mitigating risks
- Gap analysis of existing and required policies
- Case studies within the region
- Guarantees (such as sovereign guarantee from GOP) or no guarantees
The lessons are to be tailored to the status of South Asia’s power sector. The contractor must have extensive knowledge of the design and development of power trade, energy markets and the political, economic, and technical issues associated with South Asian regional energy trade, as well as imparting this knowledge through trainings. The contractor is expected to have prior relevant working experience in the region and a solid understanding of the South Asian power sectors and market capabilities (particularly Bangladesh, Bhutan, India, Nepal, and Sri Lanka). Training is to be delivered by highly experienced instructors, supplemented by hands-on exercises that emphasize development of skills and knowledge in the functional operations of a power exchange. The training shall include mock exercises on bidding and scheduling, demonstrations of simulated or bidding platforms, and other practical experiences.
The same set of participants will participate in all modules of training. USEA and USAID will jointly handle selection and coordination with the participants. The trainer will be responsible for ongoing communication with the participants to coordinate video conferencing logistics, provide updates on the training, and be responsive to inquiries and discussions.
Training sessions shall include pre-training and post-training surveys administered to all participants. A pre-training survey shall be conducted prior to the first training module. It will be designed to assess participants’ baseline knowledge and competencies and to identify knowledge gaps and weak areas. The planned training courses shall be modified to address the identified gaps. A post-training/skill assessment survey will take place after the last module and will be designed to measure participating trainees’ knowledge improvements in the subject areas. The assessments should inform quantitative and qualitative results.
The bidder should propose a training approach, including training platform(s), duration and schedule. Bidders should provide a detailed format in their technical proposal that allows for sufficient coverage of all the requested topics and practical exercises. The format should outline the total number of person-hours of training, number of hours/day, number of training sessions/week, and format.