ARTES Integrated Applications Promotion Statement of ESA … · 2019-12-19 · Prepared by ESA...

Prepared by ESA

Reference ESA-TIAA-SOW-2017-1097

Issue 1

Revision 0

Date of Issue 23/08/2017

Status Final

Document Type SOW

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ESA UNCLASSIFIED - For Official Use


estec

ARTES Integrated Applications Promotion Statement of Work ESA Express Procurement Plus - EXPRO+ Integrated applications for microgrids in developing economies

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Title Integrated applications for microgrids in developing economies Statement of Work

Issue 1 Revision 0

Author Not Applicable Date 23/08/2017

Approved by Date

Reason for change Issue Revision Date

Issue 1 Revision 0

Reason for change Date Pages Paragraph(s)

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Table of contents:

1 INTRODUCTION ............................................................................................................................. 4 1.1 Scope of the document ....................................................................................................................................................... 4 1.2 Reference documents ......................................................................................................................................................... 4 1.3 Annexes .............................................................................................................................................................................. 5 1.4 Acronyms ............................................................................................................................................................................ 5 1.5 Definition of terms ............................................................................................................................................................. 6 2 CONTEXT ....................................................................................................................................... 7 2.1 Microgrids ..........................................................................................................................................................................8 2.1.1 Background ......................................................................................................................................................................8 2.1.2 State of Play and Trends ..................................................................................................................................................8 2.1.3 Challenges ...................................................................................................................................................................... 10 2.1.4 User Needs ...................................................................................................................................................................... 11 2.1.5 Introduction to Space Systems ...................................................................................................................................... 13 2.2 Feasibility study Objective and requirements ................................................................................................................ 14 3 WORK OVERVIEW ........................................................................................................................ 15 3.1 Work logic......................................................................................................................................................................... 15 3.2 Phase 1 (Viability Assessment) ........................................................................................................................................ 17 3.2.1 Task 1: Stakeholder Analysis and Preliminary Sustainability Assessment ................................................................. 17 3.2.2 Task 2: Technical Feasibility Assessment .................................................................................................................... 19 3.2.3 Task 3: Business Model Development, Business Plan Creation, Viability Analysis Input ......................................... 21 3.3 Phase 2 (Implementation Plan) ....................................................................................................................................... 22 3.3.1 Task 4: Roadmap for future implementation ............................................................................................................... 22 4 Requirements for Management, Reporting, Meetings and Deliverables ......................................... 24 4.1 Management ..................................................................................................................................................................... 24 4.2 Access ............................................................................................................................................................................... 24 4.3 Reporting .......................................................................................................................................................................... 24 4.4 Meetings ........................................................................................................................................................................... 26 4.5 Deliverable Items ............................................................................................................................................................. 27 5 Schedule and Milestones ................................................................................................................ 31 5.1 Duration ........................................................................................................................................................................... 31 5.2 Milestones ........................................................................................................................................................................ 31 Annex A. GUIDELINES FOR THE PREPARATION OF A FOLLOW-UP DEMONSTRATION PROJECT . 32 Annex B. LAYOUT FOR CONTRACT CLOSURE DOCUMENTATION ................................................... 33 Annex C. Microgrids use case: India .................................................................................................. 38 Annex D. MICROgrid intiative for campus and rural opportunities presentation............................... 40

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1 INTRODUCTION

1.1 Scope of the document

This Statement of Work (SOW) describes the activity to be executed, tasks to be performed, and the deliverables required by the European Space Agency in relation to the Advanced Research in Telecommunications Systems (ARTES) Integrated Applications Promotion (IAP) Feasibility Study “Integrated applications for microgrids in developing economies”. The study shall assess the technical feasibility and commercial viability of satellite based services to support the strategic planning, operation and maintenance of microgrids, as well as of services to facilitate networking of rural schools, hospitals and other community centres where those services may spin-out thanks to the setting-up of the electricity network. The Contractor shall perform all tasks defined in this document. The tasks are not limited to the ones specified herein, but may also include tasks the Contractor may deem necessary to address and demonstrate the feasibility of the solution and associated services under consideration. This document will be part of the contract and shall serve as an applicable document throughout the execution of work.

1.2 Reference documents

The following publicly available reference documents (RD) are listed below for this Statement of Work:

RD 1 Schnitzer, D. et al., 2014. Microgrids for rural electrification: a critical review of best practices based on seven case studies. United Nations Foundation. Available at: https://rael.berkeley.edu/wp-content/uploads/2015/04/MicrogridsReportEDS.pdf

RD 2 Mandelli, et al. 2016. Off-grid systems for rural electrification in developing countries. Renewable and Sustainable Energy Reviews. Available at: https://www.researchgate.net/publication/292616403_Off-grid_systems_for_rural_electrification_in_Developing_Countries_definitions_ classification_and_a_comprehensive_literature_review

RD 3 Navigant Research. 2016. Emerging Microgrid Business Models. Available at: https://www.navigantresearch.com/research/emerging-microgrid-business-models

RD 4 Greentech Media Research. 2016. Integrating High Levels of Renewables into

Microgrids Available at: http://www.sustainablepowersystems.com/wp-content/uploads/2016/03/GTM-Whitepaper-Integrating-High-Levels-of-Renewables-into-Microgrids.pdf

https://rael.berkeley.edu/wp-content/uploads/2015/04/MicrogridsReportEDS.pdf

https://www.navigantresearch.com/research/emerging-microgrid-business-models

http://www.sustainablepowersystems.com/wp-content/uploads/2016/03/GTM-Whitepaper-Integrating-High-Levels-of-Renewables-into-Microgrids.pdf



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RD 5 Williams, et al. 2015. Enabling private sector investment in microgrid-based rural electrification in developing economies. Renewable and Sustainable Energy Reviews. Available at: http://www.sciencedirect.com/science/article/pii/S136403211500800X

1.3 Annexes

Annex A Guidelines for the preparation of a follow-on demonstration project Annex B Layout for Contract Closure Documentation Annex C Microgrids use case: India Annex D Microgrid Initiative For Campus And Rural Opportunities

1.4 Acronyms

ARTES Advanced Research in Telecommunications Systems BCR Business Case Review CAPEX Capital Expenditure COTS Commercial off-the-shelf CRM Customer relationship management DER Distributed energy resources EO Earth Observation ESA European Space Agency IAP Integrated Applications Promotion IEA International Energy Agency IESA Indian Energy Storage Alliance IPR Intellectual property rights NGO Non-governmental organisation OPEX Operational Expenditure PM1 Progress meeting 1 PWP Project Web Page PV Photovoltaic RES Renewable energy sources RD Reference Document SatCom Satellite Communication SatNav Satellite Navigation SOW Statement of Work TBD To Be Defined

http://www.sciencedirect.com/science/article/pii/S136403211500800X

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1.5 Definition of terms

In the framework of Integrated Applications Promotion (IAP) activities and within this document a number of other terms are used. For reference, these terms are defined in the document “Terminology used in ARTES Applications” accessible under: https://business.esa.int/documents Topic Specific terms related to the subject of the

study

Microgrids A microgrid is a group of interconnected loads and distributed energy resources (DERs), which acts as a single controllable entity with respect to the grid. A microgrid can be disconnected and function autonomously from the traditional centralized macrogrid (grid-connected vs island mode), or can be completely off-grid.

Table 1: Definition of terms

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2 CONTEXT

The European Space Agency (ESA) is Europe’s gateway to space. Its mission is to shape the

development of Europe’s space capability and ensure that investment in space continues to deliver

benefits to the citizens of Europe and the world.

The ESA Integrated Applications Promotions programme (ARTES element “IAP”) focuses on the

development of a range of new and innovative solutions by using and integrating different available

space assets with terrestrial assets, resulting in viable services for the benefit of society.

The IAP programme is dedicated to the development, implementation and execution of pilot

operations of Integrated Applications based on the demand of users and targeting sustainable

operational services. The goal is to provide innovative, added value services by combining different

space assets, such as Satellite Communications, Earth Observation, Navigation, and Human

Spaceflight, and integrating them with existing terrestrial assets and legacy systems. To achieve

this, the following objectives have been defined for the IAP programme:

Promotion of space applications in close partnership with end-users.

Development of new operational and sustainable services for a wide range of users,

involving a broader participation by actors on both the demand and supply sides.

Utilisation of existing space assets from one or more space domains (such as Satellite

Communications, Earth Observation, Satellite Navigation, Human Spaceflight, and others).

Better exploitation of existing space capacity and know-how, and a better understanding of

how they should evolve to meet user requirements.

Cross-fertilisation across disciplines, together with the development of a consistent

approach across Integrated Applications initiatives, to maximise their efficient and cost-

effective implementation.

ARTES IAP is organised around three main pillars:

1. Awareness Activities that aim at understanding, fostering and organising user needs.

2. Feasibility Studies that aim at assessing the technical feasibility and economic viability of

new services.

3. Demonstration Projects that aim at implementing and validating pre-operational services in

partnership with the users.

The activity “Integrated applications for microgrids in developing economies” falls within the

category of IAP feasibility studies.

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2.1 Microgrids

2.1.1 Background

Despite advances in overall global electrification rates, access to electricity for all is still far from

achieved.

The International Energy Agency (IEA) estimates that 1.2 billion people are without access to

electricity, representing 17% of the global population. More than 95% of these people are located

either in sub-Saharan Africa (550 million) or in developing Asia (300 million in India).

Approximately 80% of the people without electricity live in rural areas characterised by remoteness

and sparse population density. The traditional approach to serve these communities by extending

the central grid has been proven to be ineffective due to a combination of factors such as capital

scarcity, insufficient energy service, reduced grid reliability, etc. [RD 1].

Taking these statistics into account it becomes clear that the effort to achieve “access to energy for

all” has to focus on rural electrification, with off-grid small-scale generation presenting one of the

most appropriate options [RD 2].

Microgrids - distributed systems of local energy generation, transmission, and use - are being

steadily deployed particularly in rural areas of less developed countries. Microgrids can offer

reliable, efficient and sustainable power to populations in developing economies. This access to

reliable power is a critical driver for the economic development and welfare of communities and

countries.

Microgrids developments are typically driven either by the need for cheaper or more reliable power,

or both. For rural electrification, microgrid is practically found to be a very attractive option to

electrify a rural inhabitation of under 100 households or a village or inhabitation located in a

remote locality where physically it is difficult to take the grid supply.

Microgrids can be considered – to some extent– a miniaturised version of traditional grids

including generation, transmission, distribution and consumer elements. In terms of energy

generation, microgrids rely on a combination of various sources, from diesel to renewable including

solar photovoltaic (PV), micro-hydro, and biomass, and a combination of them (hybrid models).

2.1.2 State of Play and Trends

Most of the microgrids that are operational today started out as pilot projects or R&D experiments.

The main technology components are reaching maturity and the market is moving into a next

phase. This has been facilitated by the progress in energy storage technologies, and the decrease in

cost of certain microgrid components [RD 3].

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Investment in the microgrid sectors is increasing steadily. According to Navigant Research, the

cumulative global value of assets and services related to the development of remote power systems

is expected to grow from $10 billion in 2015 to almost $200 billion in 2024. Similarly, they forecast

that microgrid vendor revenue will be $20 billion by 2020.

This trend is also relevant to developing economies. For instance in India, microgrid investment

and development has recently gathered momentum due to significant efforts from the Federal and

State Governments as well as a number of independent civil institutions and research think

tanks(1). According to the Indian Ministry of New and Renewable Energy, current installed capacity

of microgrids in India stands at approximately 10MW. Furthermore, there are around 1,001,506

villages with a population of more than 100 inhabitants and 74,157 villages with less than 100

inhabitants. It is estimated that over 200,000 such villages will be electrified by off-grid solutions,

out of which 20% (~40,000) might be electrified with microgrids (Customised energy solution

India).

Microgrids are becoming mainstream, with a clear shift from technology validation to looking for

promising business models. Their deployment often depend on government incentives or other

funding, however, the number of microgrids that are being deployed without the help of

government grants and incentives is growing [RD 3].

The factors that drive microgrid development are regional and application-specific. In developing

countries (and for remote industrial operations), fuel prices and (unreliable) access to electricity

are the main microgrid development driving factors [RD 4].

The microgrid business case improves as the cost of solar power generation, battery storage

systems (especially lithium ion batteries) and control systems continues to decrease.

For remote rural areas, decentralized PV-technologies can be cost-competitive in comparison to an

extension of the grid. Furthermore, with solar prices falling and their efficiencies increasing,

rooftop solar and solar microgrids become more attractive over time. However, solar-based or RES-

based microgrids still have to compete with microgrids powered by generators burning fossil fuels.

The microgrid ecosystem is rather complex, with different business and organisation models

depending on microgrid size, technology, demand and quality of the electricity services to be

provided, which range from residential lighting alone to entertainment, refrigeration and

productive commercial uses. Three business models that can be distinguished are:

o Fully subsidised microgrids, where developer and the owner are typically a governmental

body.

1 UP Minigrid Policy 2016, Indian Ministry of New and Renewable Energy National Policy on Renewable energy for

microgrids (with a target of a minimum 10,000 micro and mini grid project and with minimum installed capacity of 500

MW in next 5 years), Bihar and Jammu & Kashmir states draft policies to support entrepreneurs starting projects in

microgrids.

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o For profit models, where microgrids are operated by private companies driven by return of

investment and profitability.

o Partially subsidised models, where public bodies provide financial resources to support the

setting-up of the microgrids (CAPEX), whereas the actual cost for operations and

maintenance is covered through tariff-based revenue stream.

2.1.3 Challenges

The uptake of microgrids in developing economies is challenged by a number of critical factors.

Challenge 1) Financial risks

Installations of renewable energy sources and storage systems are major investments. Private

sector participation – in addition to financial contribution from public and donor sources – is key

to expand the reach of electricity, particularly for rural microgrid electrification.

There is a high level of financial risk associated with microgrid projects in low-income (often rural)

areas, which withholds private investors to step in [RD 5] .

Challenge 2) Sizing and scaling of microgrids

The sizing of microgrids projects depends on a plethora of societal and economic factors related to

the rural communities to be provided with electricity. The difficulties in getting access to this kind

of information may result in wrongly sized microgrids.

Sizing and scaling is further complicated by the growth in electricity demand which typically

follows the electrification of rural areas because of the increased socio – economic wellbeing. If

such scaling opportunities are not anticipated in the planning of microgrid, this may eventually

hamper the opportunity for local development.

Challenge 3) Microgrids maintenance and operation

Microgrids are often based on new technologies requiring specific know-how for overseeing their

operation and maintenance. The shortage of the required skilled manpower often results in ill-

operated microgrids, which hinders their energy production. This is in turn weakening the case for

new investments to step-in.

Challenge 4) Regulatory Uncertainty

There are often no specific standards and regulations for the installation of microgrid projects. The

regulation concerning microgrids also differs per country. Proper regulation would help

synchronization between microgrids and the central grid, as there are presently often no standards

for interconnection. Furthermore, regulation would create uniformity in operations between

different private players. For example, no license is currently needed to build a microgrid in India

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and there is no legal or regulatory framework that specifies what should happen if the central grid

extends to an area already covered by a microgrid. Greater flexibility in regulation and public policy

is needed to spawn innovations in microgrid business models.

2.1.4 User Needs

The typical microgrid project is articulated in the following steps: microgrid strategic planning,

design, implementation, and operation and maintenance. Different stakeholders are in charge of

various responsibilities and accountability in each of those steps.

Policy makers, funding entities and other decision makers are typically in charge of defining

priorities for microgrids projects and eventually authorize and fund specific developments

(strategic planning). Further to their interest in ensuring a sensible prioritisation of microgrids

projects, their interest lays in the evaluation of the socio-economic impact generated by the

microgrid projects. For the latter, it is expected that microgrids development should be combined

with specific actions to support social – economic developments of the rural communities (e.g.:

increase networking of rural communities and information exchange, tele-education, tele-medicine,

etc.).

Microgrid developers are typically in charge of the design stage of the microgrid, as well as of its

implementation and (often) operation. As such, their interest lies in ensuring that the microgrid

generates the required energy production while achieving long term sustainability and return of

investment. Microgrid developers rely on technology suppliers for the procurement of the required

technology (e.g.: batteries, etc.).

Local entities act as facilitator and interface between policy makers, developers and end-users

(local communities).

An overview of the main stakeholders’ requirements is outlined in the table below:

Need Stakeholders

Identification of clusters / habitats with potential need for

microgrids.

Assessment of the energy demand (i.e. determining the required

quantity of energy supply, its quality requirements, and its

expected growth over time). Such assessment is primarily meant

to prioritise the selection of sites for microgrid projects and, as

such, should be supported by a solid understanding of socio-

economic factors such as population density over the considered

Decision makers

Policy makers

Regulators

Microgrid developers

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area, type of activities performed in the considered area, presence

or not of precursor industrial activities that may steer energy

demand and support sustainability (anchor customers).

(when: Strategic planning)

Providing resource assessment to help in optimal sizing of microgrids to generate the required energy demand and quality, and selection of the most effective energy source basket for energy production (e.g.: solar, wind, etc.). A major cost-driver is the assessment of potential energy production (e.g.: for solar) in the considered area. Such assessment should provide long term power forecasting information (how much energy the microgrid will be able to generate in the long run).

The design of the microgrid should take into account the energy demand growth, thus it should be assessed how the microgrids scales-up to address such increased energy demand.

(when: design)

Microgrid designers and

developers

Operation and maintenance tools including:

Automated remote maintenance of the grids including

fault notification (from generation and distribution

including load balancing, demand supply management).

Regular reporting on energy production and consumption.

(when: operation)

Microgrids operators

Facilitate socio-economic growth of the local communities

through:

Telemedicine.

Teleducation.

Ensuring communication between different local

communities.

Creating better economic development opportunities

through access to better data and tools.

(when: operation)

Policy makers

Decision makers

Support the assessment of the socio economic impact of microgrid

projects:

Information on the outcome of the microgrids project.

Historical data on microgrids energy production vs. energy

consumption.

Policy makers

Decision makers

Regulators

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Pre and post-project socio-economic indicators (such as

growth in agricultural land under cultivation due to access

to water pump or construction of new housing / business

establishment).

(when: operation)

Support disaster recovery and damage assessment:

Assessment of potential damage post natural or manmade

disasters (storms / floods / fire etc.).

Help in automated and / faster identification of microgrids

in need of repair / reconstruction.

Monitoring recovery time for restabilising microgrids.

Providing necessary evidence for funding agencies /

insurance providers to facilitate funding.

(when: operation)

Policy Makers,

Regulators, Funding

agencies and microgrid

developers

Table 2: User Needs Overview

2.1.5 Introduction to Space Systems

In microgrids, interconnection of energy systems is rapidly shifting from a decentralised approach

to a more managed, harmonised approach in which microgrids are getting closer and

interconnected.

This, together with the distributed nature of microgrids, their remoteness and the needs for

monitoring and control of distributed assets, calls for data transmission networks based on

Satellite Communications (SatCom) network or hybrid terrestrial-satellite networks.

In the future, the launch of SatCom megaconstellations may further boost the SatCom business

case by offering more appealing prices for connectivity (expected to be comparable with terrestrial

communication).

Earth observation (EO) imagery can be used in support to the strategic planning, which is

typically geared towards forecasting load, planning for load growth, and ensuring resource

adequacy. The forecasting of load (growth) will be supported by socio-economic analysis based on

EO imagery. The resource adequacy concerns the optimisation of the selection of microgrid energy

sources (e.g.: solar) and assessment of their power potential. Such assessment can be carried out or

facilitated by historical EO (weather) imagery combined with new acquisitions over the specific

region.

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2.2 Feasibility study Objective and requirements

The objectives of the Feasibility Study are to:

Assess the technical feasibility and commercial viability of satellite based services to support

microgrids strategic planning (including assessment of energy demand based on socio-

economic factors and long term power forecasting for the selection of microgrids for

renewable energy), operation and maintenance (including load balancing, demand supply

management, monitoring of energy consumptions, monitoring of distributed microgrids

assets, disaster recovery related services) and services to facilitate networking of rural

schools, hospitals and other community centres (e.g.: tele-education) that may spin-out

thanks to the setting-up of the electricity network;

identify, assess and reduce the technical and non-technical risks associated to the

implementation and operations of the to be proposed services;

to engage and secure the buy-in and involvement of important paying customers and other

relevant stakeholders of such service(s);

establish the roadmap for service implementation through a potential follow-on

demonstration project.

The activity shall eventually aim at proposing pre-operational demonstration project(s) to be

performed consecutively to the feasibility study (as co-funded Demonstration Project within the

IAP Programme), in preparation for the operational services.

The following requirements shall be taken in account when carrying out the activity:

The feasibility study shall address but not limited to the preliminary needs identified in in

chapter 2.1.4 .

The services to be addressed in the study shall:

o Cover all three main phases of microgrids projects: strategic planning, operations,

and maintenance.

o Integrate one or more space assets, e.g.: EO data, SatNav, SatCom. The utilisation of

space assets shall be justified in terms of actual benefits to users and stakeholders.

The Contractor shall consult with relevant users and stakeholders involved in microgrids

projects for developing economies to:

o Understand the existing services/applications available to the users.

o Understand the user needs, constraints and expectations.

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o Validate the user requirements.

o Validate the adequacy of the proposed systems and associated services.

o Coordinate and agree on the implementation roadmap of the services and possible

participation in a demonstration project.

Notwithstanding the above, requirements from specific microgrids initiatives being

undertaken in India will be provided by the Agency in cooperation with Indian Energy

Storage Alliance (IESA) and shall be addressed in the study. An overview of the use case for

Indian microgrids is provided in Annex C. IESA has launched the “Microgrid Initiative for

Campus & Rural Opportunities (MICRO)” (Annex D) whose main goal is the reduction in

electricity cost from microgrids by 20-30% within next 3 years in India. MICRO deals with

different technical, social and business related issues like linking electrification to economic

development, aggregation of demand from small microgrids entrepreneurs for better

product options and negotiations, aggregation of funding, and remote monitoring data

sharing among all the stakeholders. As a first step, MICRO has launched a web portal

(https://micro.ces-ltd.com) for the microgrid industry that has won recognitions from the

Indian Ministry of new and renewable energy and The United States Agency for

International Development.

3 WORK OVERVIEW

This section specifies the study logic and provides the requirements of the associated tasks.

3.1 Work logic

The work is organised in two technical phases, as shown in Figure 1: Work Logic.

Phase 1 (Viability Assessment)

o Task 1: Stakeholders Analysis and Preliminary Sustainability Assessment

o Task 2: Technical Feasibility Assessment

o Task 3: Business Model Development, Business Plan Creation, Viability Analysis

Phase 2 (Implementation Plan):

o Task 4: Preparation for Service Implementation

It shall be noted that Tasks 1 to 3 are closely interlinked. The continuation to Phase 2

(Implementation Plan) is subject to ESA decision at the end of Phase 1 (Viability Assessment). This

decision will be based on technical feasibility, commercial viability, and the presented business

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case, including confirmation of willingness to pay by potential customers including but not limited

to Indian stakeholders.

The study logic reflects the minimum of tasks to be covered in this Feasibility Study. The duration

of the study shall not exceed 9 months. Within this structure, the Contractor is free to implement a

detailed study logic that serves to achieve the objectives of the Feasibility Study and to allow the

creation of the required deliverables.

Task 1Stakeholders Analysis and Preliminary Sustainability Assessment

Task 2 Technical Feasibility Assessment

Task 3Commercial Viability Assessment

Task 4Preparation for Service Implementation

Kick-Off T0

Final Review

T0 + 9 months

Progress Meeting 1

T0 + 3 months

Business Case Review

T0 + 6 months

Time

Technical Phase 1: Viability Assessment Technical Phase 2: Implementation Plan

upon ESA decision based on business case presented at Business Case Review

Figure 1: Work Logic

The following review meetings shall be held:

Phase 1 (Viability Assessment):

o Progress Meeting 1 (PM1): Mid-term, between Kick-off and Business Case Review

(BCR). Revision of the draft Business Case, including outputs of Tasks 1-3, targeting

the identification of those critical aspects requiring further assessment and

validation until BCR.

Furthermore, in relation to the Indian microgrid use case, a detailed assessment of

technical and economic aspects (CAPEX, OPEX, and cost for the users) of the service

offer, tailored to Indian microgrids, shall be provided, along with a service mock-up.

Such output will be provided by ESA to IESA for further dissemination to Indian

microgrid stakeholders, with the aim to acquire their preliminary feedback.

o Business Case Review (BCR): Second assessment of the Business Case, including

outputs of Tasks 1-3. Consolidated version of the service offer tailored to Indian

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Microgrids, including updated mock-up. ESA decision about the continuation with

technical Phase 2 (Implementation Plan) or termination of activity.

Phase 2 (Implementation Plan)

o Final Review (FR): Assessment of Implementation Plan, including outputs of Task 4.

Alternatives to this default study logic may be considered. Deviations shall be duly justified. The

content of the four tasks is specified in Section 3.2 and 3.3. If all information related to a specific

Task already exists, this Task does not have to be repeated, but relevant proof has to be provided to

the Agency as part of the proposal. Within each Task, the Contractor does not necessarily have to

achieve the work in the sequence in which it is described in this statement of work. The actual

sequence of work is left to the discretion of the Contractor.

3.2 Phase 1 (Viability Assessment)

This section presents the activities, which the Contractor shall carry out, as well as the results and

deliverables, which the Contractor shall deliver as a minimum outcome.

3.2.1 Task 1: Stakeholder Analysis and Preliminary Sustainability

Assessment

Input

– SOW

– Initial set of requirements from IESA

– MICROGRIDS USE CASE: INDIA ( Annex C) and Annex D

– Contractor’s proposal

– Iterative Output of Tasks 2 and 3

Objectives

– Consolidate Indian stakeholder requirements and assess specific value propositions.

– Identify and engage with paying customers and other relevant stakeholders.

– Validate value propositions relevant for paying customers and other relevant

stakeholders.

Task description

Consolidation of Indian microgrid use case: the Contractor shall review and consolidate the

initial requirements applicable to the Indian User case provided at the kick-off meeting. The

Contractor shall derive his understanding of the provided user requirements, the most desired

functionalities, and their value.

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Identification of business opportunities beyond the Indian use case: the Contractor shall

liaise with additional users (in addition to IESA, involved through ESA) and stakeholders involved

in microgrid projects in developing economies including funding entities and microgrid developers,

in order to perform following tasks:

1. Customer/stakeholder analysis

a. Identify paying customers.

b. Define the value chain (project specific).

c. Characterise the current actions being performed during the strategic planning,

design and operation phases of microgrids projects.

d. Identify stakeholders who are responsible / accountable of the main actions, and

position them into the value chain.

e. Identify main solutions, services and technology currently in use.

f. Assess shortcomings and major areas for improvement (gap analysis).

g. Assess the operational impact of the identified shortcomings in both societal and

economic terms.

h. Define user requirements on future services and solutions, and define their

priorities.

i. Identify key user acceptance criteria of future services.

2. Value proposition

a. Preliminary assess, through qualitative and quantitative assumptions, the benefits of

a system or service that delivers the required improvements and addresses the

requirements.

b. Provide a high level user cost/benefit analysis.

3. Stakeholders engagement

a. For each user/stakeholder directly consulted by the Contractor, a description of the

organisation, its roles into the value chain, and roles and responsibility of the

contact person within his/her organisation shall be provided.

b. Provide evidence of endorsement of Task 1 findings by each consulted

user/stakeholder.

c. Preliminary identify the next steps to set-up agreements with users / stakeholders

for post-project service exploitation and funding.

d. Establish a microgrid project database identifying short term (3 years) opportunities

to be addressed by the contractor. A customer relationship management (CRM)

database shall be established to support follow-up of the main stakeholders.

Based on Task 1 findings, the Contractor shall eventually outline the major commonalities and

discrepancies in the requirements collected from the different users and stakeholders, and propose

a baseline set of the most needed requirements.

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Output

D1 (“Indian microgrids use case analysis, business opportunities beyond the Indian use

case”).

o For PM1: draft document and presentation addressing:

Consolidation of Indian microgrid use case.

Identification of business opportunities beyond the Indian use case including

customer/stakeholder analysis and value propositions.

o For BCR: complete version

3.2.2 Task 2: Technical Feasibility Assessment

Input

– SOW





Objectives

– Characterise the services based on the value propositions identified in Task 1.

– Assess whether the value proposition can be fully or partially implemented by the identified

services.

– Assess the technical risks related to the implementation and operations of the proposed

services.

– Conclude on the technical feasibility of the identified services.

Task description

1. Service definition

a. Define the service concept, including the tools and information to be provided by

each service, and trace these back to the users and value propositions.

b. Include use cases for the utilisation of the proposed services by the user(s).

c. Derive the application requirements in terms of key functions, performance and

capabilities that the proposed service is supposed to bring to the users.

d. Explain how and to which extent the proposed service fulfils the user acceptance

criteria identified in Task 1.

e. Provide a mock-up with visual aids showing the proposed service(s) in relation to

each of the users.

Page 20 of 40



2. System specification

a. Define the high level system architecture. This architecture shall identify the major

building blocks of the system, their functions, internal and external interfaces, and

their contribution to delivering the proposed service(s).

b. Assess the contribution of space assets (e.g.: Earth Observation, Satellite Navigation,

etc.) with respect to technical and cost elements. The role of space asset(s) shall be

clearly justified and traded-off against possible alternatives.

c. Derive the system requirements associated to the proposed system architecture and

set-up a traceability matrix of user needs vs. applications and system requirements.

3. Technical feasibility analysis

a. Analyse the technical feasibility of the solution, both from a development and from

an operational standpoint, and identify the critical system elements.

b. Identify technical interfaces and constraints relevant to service implementation and

operation.

c. Perform a risk analysis to identify and assess the major risks associated to the

development activities. The risk analysis shall qualify the likeliness and severity of

impact of each identified risk, and describe possible mitigation strategies.

d. Conclude on the technical feasibility.

4. Development plan

Provide a design and development plan providing the following information for each

building block of the system:

a. Level of maturity.

b. Needed development activities.

c. How these will be realized (e.g. purchase of commercial products, loan from partners

or sponsors, developments performed within the contract by a specific partner). In

case of reutilisation of existing software (e.g.: open source or COTS), the Contractor

shall assess and confirm that the proposed approach will not lead to licensing and/or

IPRs infringements during the implementation and operation of the proposed

services.

Output

D2 (“Technical feasibility assessment”)

o For PM1: draft document and mock-up addressing the Indian microgrid use case.

o For BCR: complete version.

D3 (“Services mock-up”)

o For PM1: mock-up addressing the Indian use case.

o For BCR: complete version.

Page 21 of 40



3.2.3 Task 3: Business Model Development, Business Plan Creation,

Viability Analysis

Inputs

– SOW





Objectives

– Establish a preliminary business plan, including business models to establish the targeted

service offer.

– Assess and conclude on the economic and non-economic viability of the targeted services.

– Conclude on the commercial viability of the targeted services, clearly stating related

assumptions.

Task description

1. Business model

Build business models around Task 1 (value propositions) and Task 2 (service concepts),

that including but are not limited to:

a. Channels and processes to reach the targeted customers/users/stakeholders.

b. Consolidate the service value chain:

– The main players and suppliers to be involved in the setting-up and

exploitation of the proposed services, and their roles. The contribution of the

players identified in Task 1 shall be consolidated and validated.

– The service provider that will operate / provide the proposed services.

– Changes, if any, introduced in the value chain by the proposed new

system/service.

– Partnerships required to set-up and operate the services.

c. Key activities and resources required to set-up and operate the services.

d. Service provisioning constraints: the business model shall cover all aspects that need

to be addressed to operationalize the service(s), e.g. organisational, governance and

management structure of the supply side, distribution of roles in the supply chain,

distribution of revenues and costs among involved suppliers, distribution of IPR, etc.

2. Business plan

a. Provide a market analysis for the envisaged services; define the market segments,

understand their sizes, opportunities and barriers.

b. Understand the competition, their services and value propositions.

c. Define pricing models for the various customers / stakeholders.

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d. Provide a revenue streams model outlining how the revenues and costs will be

distributed to companies involved in the service provision.

e. Provide financial plans, including key financial indicators, e.g., CAPEX, OPEX,

Break Even Point, Net Present Value, financial projections for the next 3 years.

3. Non-economic viability

a. Identify and assess the impact of non-technical constraints (non-economic

sustainability aspects) that may hinder the provision of the identified services in an

operational context. The assessment shall include (but not be limited to) the

following constraints: regulation, standardisation, privacy, political barriers, etc.

Changes to regulations required to operate the proposed services in an operational

context services shall be identified (if any).

Output

D4 (“Business plan”) o For PM1: draft document including the business model and pricing, CAPEX and

OPEX, and non-economic viability analysis addressing the Indian use case. o For BCR: complete version.

3.3 Phase 2 (Implementation Plan)

This section presents the activities, which the Contractor shall carry out after the ESA decision to go

ahead with Phase 2, as well as the results, which the Contractor shall deliver as a minimum

outcome. The tasks also reflect additional requirements from ESA provided for guidance and

monitoring purposes. The Agency expects the Contractor to involve the paying customers and other

relevant stakeholders actively in all tasks, achieving a clear understanding on their further

involvement in a potential demonstration project. ESA will liaise with IESA to help establish a plan

for services setting-up in India.

3.3.1 Task 4: Roadmap for future implementation

Inputs

– SOW – Initial set of requirements from IESA – MICROGRIDS USE CASE: INDIA ( Annex C) and Annex D – Contractor’s proposal – Iterative Output of Tasks 1, 2 and 3

Objective

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The main objective of Task 4 is to specify the main activities to be performed, and milestones to be

met, for the implementation of the most promising service(s). Inputs for a potential follow-on

demonstration project(s) shall be prepared.

Task description

If the overall recommendation is to continue with an IAP Demonstration Project, the Contractor

shall provide:

1. The objective, scope and budget of a demonstration project, making use of the outline

proposal template available at https://business.esa.int/documents. Guidelines for the

preparation of this outline proposal are provided in Annex A.

2. An implementation roadmap towards operational and sustainable service(s), including:

a. An overview and description of the different implementation alternatives, funding

options and needs, required partners and partnership models, and possible business

support and incubation requirements.

b. An overview of the starting point for the service and system development as a result

of the Feasibility Study, i.e. the final selection of required elements and for each a

description of their level of maturity and status of integration; high level description

of design and development activities, their timeline, and costs.

c. The identification of the challenges to address the critical success factors; they shall

be addressed and introduced in a time planning leading to the successful

implementation of a sustainable service.

3. Define a plan to share the results of the study with relevant stakeholders, users and

customers. To inform about the operationalization plan, beyond the conclusion of the

feasibility study; discuss and agree the interest of relevant users and other stakeholders for

the demonstration project, as well as the success criteria and key performance indicators for

the pilot utilization phase in the demonstration project.

If the overall recommendation is not to continue with an IAP Demonstration Project, as deliverable

D6, the contractor shall provide a lesson learnt report. In the report, the contractor shall address

the key issues such as: the assessment of the met and unmet goals and objectives, identification of

activities or areas needing additional effort, etc.

Output

D5 (“Roadmap and Recommendations”)

D6 (“Outline Proposal IAP Demonstration project”) or (“Lesson Learnt Report”)

Corresponding presentation for the FR

The final results of this Task shall be presented for approval by ESA during FR.

Page 24 of 40



4 REQUIREMENTS FOR MANAGEMENT, REPORTING, MEETINGS AND DELIVERABLES

The following are the requirements for Management, Reporting, Meetings and Deliverables

applicable to the present activity.

4.1 Management

General

The Contractor shall implement effective and economical management for the project.

His nominated Project Manager shall be responsible for the management and execution of the work

to be performed and, in the case of a consortium, for the coordination and control of the

consortium’s work.

Communications

All communications to the Agency, affecting technical terms and conditions of the activity, shall be

addressed in writing to the Agency's representatives nominated in the Contract.

4.2 Access

During the course of the Contract the Agency shall be afforded free access to any plan, procedure,

specification or other documentation relevant to the programme of work.

4.3 Reporting

Reporting (on Daptiv)

During the execution of the contract the web based project planning and collaboration tool

accessible under https://artes.esa.int/daptiv-ppm-help shall be used. This collaborative

environment is made available free of charge by ESA for the duration of the contract, and it is

intended to replace the usual electronic communication tools (e.g. e-mail with attached document

and/or FTP) within the project team and for the communication with ESA, as well as for recording

and tracking Action Items.

Unless otherwise agreed with ESA and formalised in the minutes of the negotiation meeting, the

Contractor shall provide at the negotiation meeting the name(s) of the person(s) to be appointed as

administrator of the account. The Agency will activate within one week from the negotiation

meeting an account dedicated to the project team.

Page 25 of 40



Minutes of Meeting

The Contractor is responsible for the preparation and distribution of Minutes of Meetings held in

connection with the Contract. Electronic versions shall be issued and distributed to all participants,

to the Agency's Technical Officer and to the Agency’s Contracts Officer, not later than ten (10) days

after the meeting concerned.

The minutes shall clearly identify all agreements made and actions accepted at the meeting.

Action Item List

The Contractor shall maintain an Action Item List, recording all actions agreed with the agency.

Each item shall be uniquely identified with reference to the minutes of the meeting at which the

action was agreed and will record generation date, due date, originator and the person instructed to

take action. The Action Item List shall be reviewed at each review/progress meeting.

Bar-chart Schedule

The Contractor shall be responsible for maintaining the bar-chart for work carried out under the

Contract, as agreed at the kick-off meeting.

The Contractor shall present an up-to-date chart for review at all subsequent meetings, indicating

the current status of the contract activity (WP's completed, documents delivered, etc.).

Progress Reports

Within the first five working days of every month, the Contractor shall provide a Progress Report in

electronic format to the Agency's representatives (using the template at http://artes-

apps.esa.int/documents), covering the activities carried out under the Contract.

Risk Register

The Contractor shall maintain a risk register. This register shall identify potential risks, their

likelihood and severity, and propose meaningful mitigation measures.

The Contractor shall present an up-to-date risk register in the progress reports for review

at monthly progress meetings.

Problem Notification

The Contractor shall notify the Agency's representatives (Technical Officer and Contracts Officer) of

any problem likely to have a major effect on the time schedule of the work or to significantly impact

the scope of the work to be performed.

Media Relations and Events

Should the Contractor plan a Press Release, to initiate contacts with media, or to produce any

information related to the study in print or in on-line form (folders, flyers, brochures, posters, etc.),

Page 26 of 40



photographs, videos and animations, coordination with the ESA Technical Officer is required by

providing the draft content one (1) month before intended publication, so as to ensure a correct

representation of ESA and, where possible, ensure consistency with the ESA Corporate Visual

Identity. Wherever possible, liaison with the Contractor’s Services will be established to agree on

the text, Frequently Asked Questions, and material to be provided.

Should the Contractor plan to participate in trade fairs, exhibitions, or other events where the

Project is displayed, coordination with the ESA Technical Officer is required by providing the draft

content two (2) months before the event takes place, so as to ensure a correct representation of ESA

and, where possible, ensure consistency with the ESA Corporate Visual Identity.

All material prepared by the Contractor, intended for publication including the internet, shall

acknowledge that it is an ESA project carried out under the ARTES IAP programme by the

European Space Agency. The Contractor shall display in an appropriate and visible way the ESA’s

logo, downloadable at www.esa.int/esalogo.

Technical Documentation

As they become available and not later than the dates in the delivery plan, the Contractor shall

submit for the Agency's approval Technical Notes, Task/WP Reports, etc.

Technical documentation to be discussed at a meeting with the Agency shall be submitted

electronically two weeks prior to the meeting.

Technical documents from Subcontractors shall be submitted to the Agency only after review and

acceptance by the Contractor and shall be passed to the Agency via the Contractor’s formal

interface to the Agency.

4.4 Meetings

As a minimum the following meetings shall take place:

Event Date Location

Negotiation Meeting (NM) TBD ESTEC/ECSAT

Kick-off (KO) T0 Teleconference

Progress meeting (PM1) T0+3 Consortium premises

Business case Review (BCR) Conclusions of task 1 – 3. ESTEC/ECSAT

Final review (FR) To+9 ESTEC/ECSAT

Final Presentation (FP) TBD ESTEC/ECSAT

Table 3 Meeting list

Page 27 of 40



Additional meetings may be requested either by the Agency or the Contractor.

For all meetings with the Agency, the Contractor shall ensure that proper notice is given at least two

(2) weeks in advance. For all other meetings, the Contractor shall inform the Agency, which

reserves the right to participate. The Contractor is responsible for ensuring the participation of his

personnel and those of the Subcontractor(s), as needed.

The Contractor shall give to the Agency prior notice of any meetings with Third Parties to be held in

connection with the Contract. The Agency reserves the right of participation in such meetings.

With due notice to the Contractor, the Agency reserves the right to invite Third Parties to meetings

to facilitate information exchange.

For each meeting the Contractor shall propose an agenda in electronic form and shall compile and

distribute hand-outs of any presentation given at the meeting.

4.5 Deliverable Items

In addition to the documents to be delivered according to section 4.3 here above, the following

documentation shall also be deliverable.

All documentation deliverables mentioned hereunder (including all their constituent parts) shall

also be delivered in electronic form in a format agreed by the Agency (PDF format, the native

format and in other exchange formats where relevant).

All the documentation shall be delivered on computer readable media (e.g. CD-ROM, DVD-ROM)

as agreed.

The draft version of the documentation shall be sent to the Agency’s Technical Officer in electronic

format not later than two weeks before the documentation is to be presented.

The final version shall be provided in a number of copies specified hereunder.

Page 28 of 40



Documentation

Doc ID Title Initial submission Revision/updating Final submission

D1 Indian microgrids use case analysis, business opportunities beyond the Indian use case

PM1 BCR FR

D2 Technical feasibility assessment PM1 BCR FR

D3 Services mock-up PM1 BCR FR

D4 Business plan PM1 BCR FR

D5 Roadmap and Recommendations FR FR

D6 Outline Proposal for IAP Demonstration Project (if applicable)

or

Lesson Learnt report

FR FR

TDP Technical Data Package (TDP) FR FR

PWP Project Web Page PM1 BCR FR

FP Final presentation FP FR

FR Final Report , including Executive Contract Closure 2

2 3 CDs to be delivered to the ESA Technical Officer,

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Summary(**)

CCS Contract Closure Summary (**) Contract Closure Signed electronic copy to be delivered to the ESA Technical Officer with copy to the ESA Contracts Officer

1 electronic copy to be delivered to the ESA Contracts Officer. In addition to the above, 1 paper copy and 1 copy on CD-ROM shall be sent to the ESA Information and Documentation Centre – ESTEC Library, Postbus 299, 2200 AG Noordwijk, The Netherlands

Page 30 of 40



(**) Definitions of Deliverable Documents

Final Report (FR) The Final Report shall concisely summarise the findings of the Contract. It shall be suitable for non-experts in the field and should also be appropriate for publication. For this reason, it shall not exceed twenty-five (25) pages. The Final Report shall include a two (2) page Executive Summary. This Executive Summary shall be in a glossy format for marketing and general distribution purposes. The Final Report shall not contain any proprietary information or confidentiality/copyright statement The front cover of the Final Report shall carry the following text within a delineated box of at least 10 cm x 4 cm, preferably located in the top or bottom left-hand corner of the cover:

“EUROPEAN SPACE AGENCY CONTRACT REPORT

The work described in this report was done under ESA contract. Responsibility for the contents resides in the

author or organisation that prepared it.”

Technical Data Package (TDP) The contract shall be completed with a Final Data Package. The Final Data Package consists of the final versions of all approved technical documents. The Contractor shall deliver to the ESA Technical Officer 3 copies of the Final Data Package (FDP), consisting of a CD or DVD containing the most recent version of all main deliverables (Final Report, PWP, deliverables D1 – D6). The CDs shall be labelled with the title “Technical Data Package”, the project name, the company name, the contract number, and the completion date. They shall include Acrobat Reader and the documents in PDF format as well as an index document with links to the different document files.

Final Presentation (FP) The final presentation shall be used to summarise the main achievements of the activity vs. the objectives. A view shall be given of the potential follow on activities from this Contract. This presentation shall be given at the time and venue defined by the Agency.

Project Web Page (PWP) The Contractor shall produce, as input to User Requirements Review (URRR), a Project Web Page according to the template accessible under: https://business.esa.int/documents. A final version of the Project Web Page shall be provided together with the Final Report. This final version shall include a paragraph summarising the most significant achievements of the study. All study information to be published including the "project web page" will duly respect any relevant confidentiality agreement established among the partners.

CONTRACT CLOSURE SUMMARY (CCS) The Contract Closure Summary is a mandatory deliverable, due at the end of the contract. For the avoidance of doubt, “end of the contract” shall mean the finalisation of a series of tasks as defined in a self-contained Statement of Work. The contents of the Contract Closure Summary shall conform to the layout provided in Annex B hereto.

https://business.esa.int/documents

Page 31 of 40



5 SCHEDULE AND MILESTONES

5.1 Duration

The duration of the project shall not exceed 9 months from Kick-Off (KO) to the end of the activity (delivery of the draft Final Report).

5.2 Milestones

The following milestones shall apply:

Milestone Ref Event

MS1 MS2 MS3

PM1 BCR FR

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ANNEX A. GUIDELINES FOR THE PREPARATION OF A FOLLOW-UP DEMONSTRATION PROJECT

As mentioned in the SOW, the Contractor shall propose a roadmap for the follow-up of the study. Contractors which intend to continue after the completion of the feasibility study with a demonstration project have to prepare an outline proposal for such a demonstration project as part of Task 4. Accordingly, the individual tasks of the feasibility study are expected to result in outputs which allow the generation of an outline proposal for such a demonstration project. The interactive training tool to facilitate the creation of such an outline proposal can be found on the ESA website under: https://artes.esa.int/outline-proposal-toolkit (registration required) and contains 11 modules. In the following table the relation between feasibility study tasks and demo project outline proposal modules is presented.

Feasibility Study Task Demo Project Outline Proposal

Module Task 1: Stakeholder Analysis and Preliminary Sustainability Assessment

Module 2: Major Project Stakeholders Module 7: User Requirements

Task 2: Technical Feasibility Assessment

Module 8.1: System/Service Architecture

Task 3: Business Model Development, Business Plan Creation, Viability Analysis

Module 2: Major Project Stakeholders Module 3: Service Value Chain Module 5: Market Analysis Module 4: Competitive Positioning Module 1: System/Service Opportunity Module 6: Financial Indicators

Task 4: Roadmap for future implementation Module 8.2 and 8.3: System/Service Architecture Module 9: Implementation Approach Module 10: Pilot Service Module 11: Finance, Management & Administrative (FMA)

Page 33 of 40



ANNEX B. LAYOUT FOR CONTRACT CLOSURE DOCUMENTATION

CONTRACT CLOSURE DOCUMENTATION

for

ESA/ESTEC Contract No. ...... [INSERT NUMBER]

“[INSERT ACTIVITY TITLE]”,

hereinafter referred as the “Contract”

Section 1 – Parties, Contract Duration and Financial Information

Contractor [CONTRACTOR NAME]

Sub-Contractor(s) (state if not applicable)

[NAME AND COUNTRY]

Contract Duration

From: To:

Phase 1 from: to:

Phase n from: to:

Total Contract Price (including all CCNs, Work Orders, Call of Orders) and Total Contract Value (in case of co-funding; state if not applicable)

EUR EUR

Broken down as follows:

Original Contract Price and original Contract Value (in case of co-funding; state if not applicable)

XXX EUR (XXX EUR) EUR

CCN x to n Work Order x to n

EUR in total EUR in total

Page 34 of 40



Call-Off Order x to n

EUR in total

Section 2 – Recapitulation of Deliverable Items

2.1 Items deliverable under the Contract

If any of the columns do not apply to the item in questions, please indicate “n/a”.

Table 2.1.1 – Items deliverable according to the Statement of Work

Type Ref.

No.

Name /

Title

Description Replaceme

nt Value

(EUR)/

Other

Locati

on3)

Property of Rights

granted /

Specific

IPR

Condition

s4)

Docume

ntation

Hardwar

e

Software

(Delivery in

Object code /

Source code?)

Other

3 In case the item is not delivered to ESA, please indicate the location of the deliverable and the reason for non-delivery

(e.g. loan agreement, waiver, future delivery, etc.) 4 e.g. IPR constraints, deliverable containing proprietary background information (see also 2.1.4 below)

Page 35 of 40



Table 2.1.2 – Other Deliverable Items: Inventory of Items produced or purchased under the Contract

(if applicable)

[OPTION 1: No Fixed Assets]

No Fixed Asset has been acquired under the Contract by the Contractor and/or its Sub-

Contractor(s).

[OPTION 2: Fixed Assets]

Any fixed assets are listed below. The Contractor certifies that all its obligations with regards to

Fixed Assets (see also Article 2.1.3 and Article 4 of the Contract) have been fulfilled.

Item Name Part/ Serial Reference

Number Location Value

Table 2.1.3 – Customer Furnished Items and Items made available by the Agency

Any Customer Furnished Items and/or Items made available by the Agency to the Contractor and/or its Sub-

Contractor(s) under the Contract, are listed in the following List of Customer Furnished Items and Items made available

by the Agency. The following tables certify which of the items have been returned to the Agency and which of the items

remain in the custody of the Contractor, and/or a Sub-Contractor(s) and/or a Third Party for further ESA work or for

other purposes.

Customer Furnished Items

ESA DECISION

Item

Name

ESA

Inventory

Number

Location Insurance

Value

Confirmation of

Receipt Deliver

Leave at (Sub-)

Contractor’s

Disposal

Items made available by the Agency

Item

Name

ESA

Inventory

Number

Location Replacement

Value Deliver

Leave at (Sub-)

Contractor’s Disposal

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Table 2.1.4 – Background Information used and delivered under the Contract

(see Clause 43 of the General Clauses and Conditions)

The following background information has been incorporated in the deliverable(s):

Proprietary

Information

(title,

description)

Owner

(Contractor, Sub-

Contractor(s),

Third Party/ies)

Affected

deliverable

(which

documents,

hardware,

software, etc.)

Description impact

on ESA’s rights to

the deliverable5

Other/comments

Section 3 – Output from / Achievements under the Contract

3.1 Service Readiness Level (SRL)

N/A

3.2 Achievements and Technology Domain

N/A

3.3 Application of the Output/ Achievements

N/A

3.4 Further Steps/Expected Duration

Please tick off as appropriate:

No further development envisaged.

Further development needed:

……………………………………………………….

Please describe further development activities needed, if any, to reach TRL 5/6 including an estimate of the expected

duration and cost.

5 if not explicitly stated otherwise, the contractual stipulations shall prevail in case of conflict with the description provided in this table

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3.5 Potential Non-Space Applications

N/A

Section 4 – Statement of Invention

[OPTION 1: NO INVENTION]

In accordance with the provisions of the above Contract, ……………[Company] hereby certifies

both on its own behalf and that of its consortium/Subcontractor(s), that no Intellectual Property

Right(s) has(ve) been registered in the course of or resulting from work undertaken for the purpose

of this Contract; and that no inventions have been made in the course of or resulting from work

undertaken for the purpose of this Contract that generated knowledge that could be registered as

Intellectual Property Rights.

[OPTION 2: INVENTION]

In accordance with the provisions of the above Contract, ……………[Company] hereby certifies

both on its own behalf and that of its consortium/Subcontractor(s) that the following Intellectual

Property Right(s) has(ve) been registered in the course of or resulting from work undertaken for the

purpose of this Contract.

…………………….

[OPTION]: In accordance with the provisions of the above Contract, ……………[Company]

hereby certifies both on its own behalf and that of its consortium/Subcontractor(s) that the following

inventions have been made in the course of or resulting from work undertaken for the purpose of

this Contract but have not been registered as Intellectual Property Rights:

…………………….

[OPTION]: In accordance with the provisions of the above Contract, ……………[Company]

hereby certifies both on its own behalf and that of its consortium/Subcontractor(s) that the following

inventions have been made in the course of or resulting from work undertaken for the purpose of

this Contract and are foreseen for and/or in the process of registration:

The Agency’s rights on such registered and/or unregistered Intellectual Property Rights shall be in accordance with the

ESA GCC Part II provisions as amended by the above Contract.

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ANNEX C. Microgrids use case: India

Planning microgrids in rural India revolves around the needs of local habitants, who are in dire

need of energy access or reliable electricity. These habitants, and the micro enterprises run by and

for these habitants (postal services, schools, health clinics and fuel stations) can be identified as the

end consumers of the electricity generated by microgrids.

Local habitants and rural micro enterprises rely heavily on telecom infrastructure for their

communication and internet needs. Lack of telecom infrastructure can be a challenge for daily

commercial activities. Tele-medicine services and distance learning can be integrated at the

remotest villages if reliable electricity and communication services are available to them.

Figure 2: Rural Microgrid Stakeholders (Source: IESA Analysis)

The stakeholder connecting the end users to the rest of the microgrid community is the local body.

Local bodies can be government agencies like State Nodal Agencies, NGOs or utilities. These local

bodies are working with the local community on many fronts, like health care, education, energy

needs, water supply and livelihood activities. These local bodies rely on their local teams and their

interactions with the local community. Once these agencies address the local energy requirements,

they get in touch with project developers or funding agency to validate energy project possibilities.

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Project developers are core to the business of installing microgrids. They start with local leads,

carry out planning report, model microgrid plants, source funding and commission the project. In

most cases project developers are also responsible for revenue collection and for carrying out

operations & maintenance of the plant. For billing, project developers are mostly relying mostly on

manual data. Furthermore, the microgrids are manually monitored or not monitored at all. Hence,

inaccessibility of data leads to lack of analysis and microgrid knowledge generation. In many of the

cases, project owners and operators cannot be blamed because poor telecom connectivity and the

high cost of remote monitoring at remote locations has plagued data acquisition and analysis.

Funding agencies and policy makers are, through funding and imposing regulatory frameworks,

instrumental in constructing a stimulating growth environment for rural electrification through

distributed generation. However, these stakeholders are given information about microgrid sites by

project developers who are themselves unfortunately not fully aware of issues and their root causes.

The central policy makers and government funding organization decide whether a certain locality

should be grid connected or electrified by off-grid system. These decisions are taken majorly on

anticipated energy requirement, population, and distance of village from the grid and terrain.

Technology providers, especially metering and inverter companies, need to play an important role

in communicating data to enhance the transparency of the system. However, non-standard

communication ports and proprietary protocols challenge this.

Page 40 of 40



ANNEX D. MICROGRID INITIATIVE FOR CAMPUS AND RURAL OPPORTUNITIES

A platform for scaling technically and financially sustainable microgrids.

Presented by Dr. Rahul Walawalkar & Harsh ThackerExecutive Director, India Energy Storage Alliance & Program Manager, MICROPresident & MD, Sr. Consultant Customized Energy Solutions India Pvt. Ltd Customized Energy Solutions India Pvt. Ltd

www.micro.indiaesa.info

http://www.micro.indiaesa.info/

• India has ~350 GW installed generation capacity with a population of 1.2+ Billion

Energy Scenario in India

• Over 300 million people without access to electricity

• Highly populated states such as Bihar and UP will require significant increase in generation capacity (MW)

• Number of states experience regular planned power outages of 4 hrs or more

• Has over 90 GW of installed Diesel Generation used in some cases as the primary source for power for industrial and commercial customers offering a low hanging fruit for early storage adoption coupled with renewables

Source: Prayas

While significant improvements

are taking place in overall

generation availability and grid

expansion, microgrids can help

in improving the power quality

and reliability.

Renewables in India: Solar and Wind

• Currently installed total wind generation

capacity is ~32 GW

• Western and southern regions of India are the

most favourable

• Target for 2022 is 60 GW which implies almost

doubling of the current installed capacity

• Currently installed total solar PV generation

capacity is ~13 GW

• Most regions of India have an abundance of

source of solar energy

• Target for 2022 is 100 GW which implies almost 8X

of the currently installed capacity

• Target includes 40 GW of rooftop solar, which

could be part of microgrids as well

Wind Generation

Capacity

Solar Generation

Capacity

4

Timeline of schemes launched by the Indian

Government for rural electrification

India has taken a lead in microgrids policy

Stand-alone grid

Minigrid

(10kW and above)

AC minigrid440V*

3Phase

Microgrid

(less than 10kW)

24V* DC upto 1kW

72V* DC above 1 to

10kW

220V* single

phase AC upto 10kW

National Policy in India classifies Microgrids and

Minigrids as per their size. The policy also recommends

voltage level for the different sized grids.

Revenue and financing

Pay as you go model – metered energy tariff

Power tariff – fixed Wattage based package

RoE capped at 16% in case of for-profit ventures

Allow grant/subsidy support for O&M but needs transparency

Performance and technical standards

Service norms – minimum 8hrs of domestic supply, atleast 30%

of load should be domestic

System component – adhering to MNRE specifications

Distribution n/w – Safety norms as per CEA regulations

Consumer connection – stipulates a min 200W per HH

Interconnection to the grid - CEA regulation 2013 with proper care

w.r.t. islanding/isolation

What happens when main grid arrives

Co-exist with grid, can draw and sell surplus to grid (PPA

arrangement)

If exits, mini/ micro grid will receive SERC regulated tariff for

generation including wheeling charges

Option to enter Franchisee Agreement with Discom, modalities to

be developed by the SNA

The Policy targets minimum 10,000 installations or 500MW of mini/micro grids in 5 years

What can be the scale of

microgrid opportunities in India?

850

million

Rural population

of India

237million

Rural population

w/o grid supply

300 million

Population with

poor grid reliability

Up to 40

million

100

million

Electrification by

Mini/micro grids

Enhanced power quality,

reliability & resiliency

through Mini/micro grids

Funding gap need to be bridged strategically

Source:

ADB

Annual Funding Requirement for energy

access and clean energy, Global, Till 2030 • India would require funding in range of over $10 billion

per year to achieve energy access for all till 2030

• Private investment required in range of billions to achieve

this feat.

• Villages with high economic growth potential have to be

identified and should make way for private equity

investments. Supply and marketing chains of FMCGs and

other entities need to be tapped.

• Funding businesses around microgrids can be the key to

find anchor consumers.

• CSR and low return investments should be strategically

targeted towards the very last mile habitation and

communities.

Microgrid Initiative for Campus &

Rural Opportunities (MICRO) – Phase 1

9

www.micro.indiaesa.info


Energy Access – Four Pillars of Strength

Enhancing Data and Knowledge for Driving Policies

Bottom of Pyramid Innovation for Achieving Right Business Models

Skill Development of People Working in Highly Un-organized Sector

Funding needs to be co-related with Economic Development of Community

Policy Makers

Funding Agency

Communication

& Automation

Technology Provider

Developers

Local body

Habitants

Data Availability a major concern

• Data on operational microgrids is not easily available.

• Inverter OEMs need to freely share communication

protocol for their equipment.

• Innovative technology and business model required for

low cost data collection and analysis at microgrids level.

• Inaccessible sites makes monitoring even more crucial

• Sites surveyed by MICRO team shows lack of optimized

sizing of grids and efficiencies on the lower side

• There is no feedback of operational data taken by

developers while designing new sites

Monitoring on MICRO

Microgrid Initiative for

Campus & Rural Opportunities (MICRO)

13www.micro.indiaesa.info


Smart Townships and Cities

• Indian Government is working on

developing 100 Smart Cities.

• 20 smart cities are already identified for

initial funding

• In addition over 300 Ultra Modern

Townships with 5 – 50 MW of peak demand

could drive need for storage in India.

14

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