Background

In 2015, adopted the 2030 Agenda for Sustainable Development, which includes a set of 17 Sustainable Development Goals (SDGs) to end poverty, fight inequality and injustice, and tackle climate change by 2030.  SDG No. 7: Ensuring Access to Affordable, Reliable, Sustainable and Modern Energy for All, is placing “sustainable energy” high on the global development agenda for the next fifteen years, and it underpins progress on a large number of the other SDGs.

Globally, 1.1 billion people still lack access to electricity and another 1.2 billion have unreliable access. By region, the deficit remains overwhelmingly concentrated in Sub-Saharan Africa and South Asia.  The majority of this underserved population either depends on kerosene for poor quality lighting or spends most of their nights in darkness. Significant development, climate, health and economics related research presents evidence that the continuation of kerosene usage extends the cycle of energy poverty, environmental degradation, chronic illness and premature deaths, and restricts economic growth in developing countries (1). Despite this continued documentation on negative impacts, the use of kerosene for basic lighting in rural areas and cooking in urban areas continues to be widespread in many developing countries, propelled by both the continuing lack of alternatives and the government support for kerosene availability, mainly for lighting and intended for poor populations. The IMF estimates suggest that the total global pre-tax subsidy on petroleum products were at US$ 267 billion in 2013 and the subsidies on kerosene account for a major share of this total subsidy.  According to the latest data available for 2012, the total annual world kerosene consumption was at 51 million tonnes.

To affect systemic change in the use of kerosene and its accordant subsidies, in 2016 UNDP is proposing to launch the global ‘Clean Light For Life’ Initiative which would initially focus on selected high impact developing countries in Sub-Saharan Africa, Asia Pacific, the Arab States and Latin America & the Caribbean.  The initiative would aim to advocate, develop and implement a global partnership platform for accelerating the transition away from the use of kerosene for lighting through the offering of affordable, reliable and sustainable off-grid lighting products and services. UNDP’s strong country presence would enable it to effectively work with partners at both the global and national levels. 

In order to support the development of a strong global advocacy platform and network, UNDP is proposing to conduct an assessment of kerosene consumption and subsidy for selected countries.  This assessment would lay the foundation to engage with partner Governments on a kerosene transitioning programme as part of the “Clean Light for Life” Initiative.  This assessment is particularly timely in the context of the ambitions of the Sustainable Development Goals to “gradually eliminate harmful subsidies, where they exist, and minimizing possible adverse impacts in a manner that protects poor and the disadvantaged communities.

Little is understood about kerosene consumption and trends, specifically, its end-uses; the extent of; subsidies and their implications; the economic, social & environmental impacts; the competitiveness of alternatives;  and the  regulatory and policy measures that enable a transition away from kerosene usage. The proposed assessment will develop an information base that will begin to bridge this knowledge gap, and guide UNDP’s engagement with its government partners and other stakeholders.  

A major objective of the work is to assess the effect of kerosene subsidies on nascent alternative lighting technology markets in the selected countries in Sub-Saharan Africa, Asia Pacific, the Arab states and Latin America & the Caribbean. It will consider whether the opportunity exists to both reduce the subsidy allocation within government budgets, while dramatically increasing energy access through alternatives.  The intent is to provide evidence to support decision-makers as they strive to protect and enhance both the environment and the lives of the energy poor.

Note:

References include: Black Carbon and Kerosene Lighting: An Opportunity for Rapid Action on Climate Change and Clean Energy for Development; Brookings Institute, April 2013; Black Carbon Emissions from Kerosene Lamps-Potential for a new Climate and Clean Air Coalition Initiative, Ecologic Institute, November 2013; Lighting Africa Market Trends, IFC, June 2013.

Duties and Responsibilities

UNDP is looking for the services of a consultant to undertake a Kerosene Consumption and Subsidy Assessment to support the above work over the period of 30 November 2015 – 25 January 2016. The Consultant will be responsible for producing the following deliverables/outputs:

  • A detailed report on the assessment of the economic, social and environmental impacts of kerosene consumption and subsidies as well as estimates on kerosene consumption trends (past and future) and patterns – for a minimum of 18 countries as listed in Annex A;
  • An executive summary of the report for wider dissemination;
  • Detailed presentation slides for dissemination.

The specific objectives of the assessment are:

  • To assess kerosene consumption patterns and trends across countries, sectors and end-uses (lighting, cooking, heating, etc.);
  • To perform an economic analysis of kerosene subsidies in terms of trends, magnitude and impacts;
  • To quantify the impacts of kerosene lighting on economic (including financial), social and human systems, taking into account the gender dimension;
  • To recommend policy, regulatory and advocacy measures for enabling kerosene transition to viable alternatives.

In order to achieve these objectives, the assessment should seek to address the following key questions, by performing analysis using secondary sources of information/data from literature, reports, websites, etc. 

Key Questions:

  • What are the current as well as expected future trends in kerosene consumption in the selected countries?
  • What are the best estimates of kerosene consumption for different end-uses (lighting, cooking, heating, transport, agriculture, etc.) in the selected countries?
  • What are the best estimates of kerosene subsidies in the selected countries and share of kerosene lighting in total subsidies?
  • What are the pass-through estimates of actual kerosene prices in the selected countries? These provide the measure of gap between market-based prices and subsidized prices; 
  • What is the economic cost of kerosene subsidy for lighting - by country?
  • What are the changing trends in kerosene subsidies in relation to world oil prices?
  • How do kerosene subsidies for lighting impact the markets for alternate technologies?
  • What are the measures for targeting kerosene subsidies to specific populations?
  • Are direct cash transfers proven to be effective?
  • What are the potential estimated savings by eliminating kerosene subsidies for lighting?
  • What are the trends in kerosene transition (shift-away from kerosene) in the selected countries?
  • What are the competitive strengths (price, quality, scope, etc.) of alternate technologies (grid and off-grid; solar) to enable kerosene transition?
  • What are the policy and regulatory measures for enabling kerosene transition?
  • What are the advocacy measures for kicking the kerosene habits, taking into account the gender dimensions of kerosene purchase and usage?

The analysis of kerosene end-use pattern is basically to set the context; the focus of this assessment is on lighting. While data on siphoning of subsidized kerosene into the agriculture and transport sector for adulteration of other subsidy-free fuels may not be readily available, where possible this will have to be discussed, even with anecdotal evidence, in order provide the full context of kerosene consumption.  

No original econometric projections are required; merely to discuss the possible future trends given the past.

The consultant responsibilities are the following:

Key Outputs:

  • Output 1 – A detailed report on the assessment of the economic impacts of kerosene consumption and subsidies as well as estimates on kerosene consumption trends (past and future) and patterns;
  • Task 1A:  Following a preliminary assessment of the scope of the work, the consultant will prepare an annotated outline of the final report for approval.

This task is expected to take approximately 3 working days.

Task 1B:  Following approval of the annotated outline of the Report, the consultant will conduct the detailed assessment for the 18 countries listed in Annex A and produce the Final Report, incorporating:

  • Assessment of the kerosene consumption patterns and trends across countries, sectors and end-uses (lighting, cooking, heating, pumping, transport, etc.);
  • Economic analysis of kerosene subsidies in terms of trends, magnitude and impacts;
  • Impacts of kerosene lighting on economic (including financial), social and human systems;
  • Policy, regulatory and advocacy measures recommended for enabling kerosene transition to viable/cleaner alternatives for lighting.

This task is expected to take approximately 20 working days.

Output 2 – An executive summary of the detailed Report aimed for wider dissemination.

In close consultation with the supervisor and based on the detailed Assessment Report, the consultant will be responsible for producing an executive summary for publication and wider dissemination.  
This task is expected to take approximately 4 working days.

Output 3 –Detailed presentation slides for dissemination

  • Based on the detailed Assessment Report, the consultant will be responsible for producing a detailed set of Powerpoint presentation slides for a formal presentation to the team of UNDP technical advisors/specialists and external experts.

This task is expected to take approximately 3 working days.The consultant for the Kerosene Consumption and Subsidy Assessment will be working from home for a period of approximately 30 working days over the period 30 November until 25 January 2016 and undertake a four-day mission travel to Istanbul. 

Responsibility for expenses and their reimbursement and consultancy fee:

The Consultant will be responsible for all personal administrative and travel expenses associated with undertaking this assignment including printing, stationery, telephone and electronic communications, and report copies incurred in this assignment. Any medical costs are also the responsibility of the consultant. In addition, the consultant is responsible for having his/her own travel insurance.

For this reason, this contract will be prepared as a lump sum contract payable in two installments as follows:

  • First Payment: Payment of 60 percent of the total contract amount upon completion of all work under Output 1 (ca. 30th December 2015);
  • Second Payment: Payment of 40 percent of the total contract amount upon completion of all work under Outputs 2 and 3 (ca. 25th January 2016).

Reporting Requirements:

The consultant will report to the Global Energy Policy Advisor based in UNDP Istanbul Regional Hub.

Competencies

  • Strong interpersonal skills, communications skills, ability to work long distance, via email and skype, as part of a team;
  • Ability to plan and organize his/her work, efficient in meeting commitments, observing deadlines and achieving results;
  • Openness to change and ability to receive/integrate feedback;
  • Attention to details and ability to solve challenges independently;
  • Skills in working with information driven products;
  • Very strong skills in research, data analysis and writing;
  • Knowledge of MS Word, Excel and PowerPoint presentation software.

Required Skills and Experience

Education:

  • A minimum of a Master’s level degree in energy, economics, finance or a related field.

Experience:

  • At least 7 years of work experience in energy research and analysis;
  • Proven experience in professional writing through journal papers and publications;
  • Substantive understanding of the linkages between energy access and development;
  • Prior experience with international organizations (including UNDP) is an advantage.

Language:

  • Excellent English writing and communication skills.

Evaluation of applicants:

Individual consultants will be evaluated based on a cumulative analysis taking into consideration the combination of the applicants’ qualifications and financial proposal.

The award of the contract should be made to the individual consultant whose offer has been evaluated and determined as:

  • Responsive/compliant/acceptable; and
  • Having received the highest score out of a pre-determined set of weighted technical and     financial criteria specific to the solicitation.

Only the highest ranked candidates who would be found qualified for the job will be considered for the Financial Evaluation.
Technical Criteria - 70% of total evaluation – max. 70 points:

  • Criterion A: A write-up of the methodology, timeline of submissions within the duration and any other additional information to explain how the assessment will be conducted and why the application should be considered favourably – max points - 30;
  • Criterion B: 7 years of work experience in energy research and analysis – max points - 15;
  • Criterion C: Proven experience in professional writing through journal papers and publications  – max points - 15;
  • Criterion D: Prior experience working with international organizations (including UNDP) – max points - 10.

Financial Criterion - 30% of total evaluation – max. 30 points

Application procedure:

Qualified candidates are requested to apply online via this website.

The application should contain:

  • Cover letter explaining why you are the most suitable candidate for the advertised position, including a write-up of the methodology, timeline of submissions within the duration and any other additional information for favourable consideration – maximum 3000 words. Please paste the letter into the "Resume and Motivation" section of the electronic application;
  • Filled P11 form including past experience in similar projects and contact details of referees (blank form can be downloaded from http://europeandcis.undp.org/files/hrforms/P11_modified_for_SCs_and_ICs.doc); please upload the P11 instead of your CV;
  • Financial Proposal* - specifying a total lump sum amount in USD for the tasks specified in this announcement. The financial proposal shall include a breakdown of this lump sum amount (number of anticipated working days, travel costs and any other possible cost).

Incomplete applications will not be considered. Please make sure you have provided all requested materials. 

*Please note that the financial proposal is all-inclusive and shall take into account various expenses incurred by the consultant/contractor during the contract period (e.g. fee, health insurance, vaccination and any other relevant expenses related to the performance of services...). All envisaged costs must be included in the financial proposal.

Payments will be made only upon confirmation of UNDP on delivering on the contract obligations in a satisfactory manner. 

Individual Consultants are responsible for ensuring they have vaccinations/inoculations when travelling to certain countries, as designated by the UN Medical Director. Consultants are also required to comply with the UN security directives set forth under dss.un.org
General Terms and conditions as well as other related documents can be found under: http://on.undp.org/t7fJs.

Qualified women and members of minorities are encouraged to apply.

Due to large number of applications we receive, we are able to inform only the successful candidates about the outcome or status of the selection process.

Annex A - Countries Identified for Kerosene Consumption & Subsidy Assessment ?(https://www.wetransfer.com/downloads/a0ee57bcf2ac62d8efee82432c5c35f920151113113703/323098e269c68e8f816a94a3bde0426020151113113703/c70609).