Purpose

To provide support to the Development Agency of Serbia (DAS) and the Foreign Direct Investments (FDI) Unit in formulating policies and incentives for energy-efficient investments.

Objective

To support the DAS and FDI Unit in facilitation and diversification of investment projects in Serbia.

Background

Improving investment climate plays a central role in growth and poverty reduction. To improve the institutional infrastructure for supporting the development of business environment in Serbia, the Development Agency of Serbia (DAS) was established in 2015. In the previous period through “Improving the Investment Climate in Serbia” project, DAS was capacitated in terms of some structures, capacity building and procedures to effectively attract new investments and manage the existing projects. The structures developed through previous project was well placed and had good coordination role, helping both the DAS and investors to make promising progress in attracting more direct investments. However, there is a need for further strengthening the DAS capacities and coordination role of the FDI Unit.

The Development Services Agreement between Government of Serbia and UNDP is envisaged to provide a framework for services requested by the Government, for ongoing initiatives of the Government, for which it bears full accountability. Most development services envisaged under the Agreement relate to support to policy making through research, advocacy or policy alternatives, aimed at fulfilling priorities as articulated in the Government plans, presented before Parliament, and in line with progress in achieving the Sustainable Development Goals.

The overall objective of the continuation of FDI Unit is to support effective coordination of all institutions in the Republic of Serbia, relevant for improvement of the investment climate, which in turn directly affects the country’s sustainable growth and development. This particularly will be needed in the next post-pandemic period and as an answer to economic impact of Covid-19. In that sense, UNDP will engage assistance for supporting policy work enabling investment projects, facilitating and attracting individual FDIs and for continuation of the capacity building of the Development Agency of Serbia.

Scope of work

Power purchase agreements (PPAs) have been gaining significant attention in the European Union (EU) renewable energy market. The current trend in the EU indicates an increasing reliance on PPAs as a means of supporting renewable energy projects and attracting investments. The EU's commitment to achieving its renewable energy targets and decarbonization goals has spurred the adoption of PPAs as a key instrument for facilitating renewable energy development.

The increasing use of PPAs in the EU is leading to the development of standardized contract structures and terms. FDI promotion for the Net Zero Industry investment projects is gaining traction and access to renewable energy and its pricing is one of the key pillars for the attraction the FDI’s to establish their presence in Serbia. For the Net Zero Industries the electricity pricing for renewables and their availability is weighed heavily in investment decision process and business plan development. Also, investors in Serbia can benefit from this trend as it provides greater clarity, transparency, and predictability in negotiating and executing PPAs, reducing the perceived risks associated with such agreements and trade restrictions. In addition, Serbia can benefit from the experiences and best practices derived from the EU's PPA market.

UNDP Serbia and DAS are seeking an expert to provide an overview of Power Purchase Agreements (PPAs) in the EU and recommendations for facilitating FDI promotion for Net Zero Industries and investors who wish to have better access to renewable energy in Serbia. The expert will assess the current state of PPAs in the EU, analyse their potential impact on the Serbian investment landscape, propose measures to utilize the full potential of PPAs in Serbian energy-sector and provide consultancy support for creating conditions for facilitating FDI promotion for Net Zero Industries.

The consultant shall be responsible for the following:

1. Review of EU practices: Explore the power purchase agreement practices in the European Union (EU) with a specific focus on countries with a similar energy landscape and investment climate to Serbia. Identify and analyze the types of contracts, contractual structures, key provisions, pricing mechanisms, and risk allocation models employed in those countries.
2. Overview of contract types: Provide an overview of the various types of power purchase agreements commonly used in the EU, including but not limited to feed-in tariffs, power purchase agreements with a sliding premium, auctions, and corporate PPAs. Explain the characteristics, advantages, and challenges associated with each contract type.
3. Assess the legal and regulatory framework: Analyze the existing legal and regulatory framework governing PPAs in Serbia, including any recent updates or proposed changes. Identify strengths, weaknesses, and potential barriers that may affect investors' decisions and participation. The consultant shall also provide analysis of the process for negotiating, signing, and executing PPAs in the Serbian context.
4. Evaluate financial and risk considerations: Examine the financial aspects of PPAs, including pricing mechanisms, payment terms, and risk allocation between investors and off-takers. Assess the impact of these factors on investor decision-making process and the attractiveness of the renewable energy sector in Serbia.
5. Based on the analysis of EU practices and the assessment of the Serbian regulatory framework, provide recommendations for policymakers and relevant stakeholders in Serbia on potential improvements or modifications to enhance the effectiveness and attractiveness of PPAs for investors in the renewable energy sector.
6. Provides an overview of the connection between the Certificate of Origin (CoO) and Power Purchase Agreements (PPAs) in the renewable energy sector.

The consultant shall cooperate closely with FDI unit and Development Agency of Serbia.

Duties, responsibilities and key milestones

The consultant is responsible for the following deliverables:

* The timelines may be slightly adjusted once the contract is signed with the consultant in order to align with actual project implementation.

All deliverables shall be written in Serbian language, quality reviewed and accepted by the UNDP Portfolio Manager in consultations with Technical Advisor for the Investment Climate.

• Ability to summarize and systematize complex information and present findings clearly;
• Consistently ensures timeliness and quality of project work;
• Demonstrates strong oral and written communication skills;
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
• Demonstrates integrity by modelling ethical standards;
• Full computer literacy in the use of MS Office package, especially Word;
• Excellent written communication skills, with analytic capacity and ability to synthesize relevant collected data and findings for the preparation of quality analysis.

Education:

• BA in Law, Business Administration, Economics or other related field.

Experience:

• At least 10 years of professional experience in proving legal counseling and legal analysis
• Experience in analyzing investment climates and providing recommendations for attracting investments.
• Familiarity with Serbia's renewable energy sector and relevant regulatory frameworks.

Languages:

• Fluency in Serbian and English.

Application Procedure:

Qualified and interested candidates are asked to submit their applications via UNDP Web site: UNDP in Serbia under section “Jobs” no later than 15 June 2023.

 Application should include: 

• CV in English language containing date of birth, contact information (home address, phone number, e-mail) and timeline of work experience (including description of duties).  
• Offeror’s Letter (only PDF format will be accepted) confirming Interest and availability for the Individual Contractor (IC) Assignment. Can be downloaded from the following link: https://www.undp.org/sites/g/files/zskgke326/files/2022-07/confirmation.docx. The Offeror’s Letter shall include financial proposal specifying a total lump sum amount for the tasks specified in this announcement with a breakdown of costs (Offeror’s Letter, including Annex 2, Table A: Breakdown of costs & Table B) Breakdown of costs by deliverables).

In order to apply please merge above listed documents into a single PDF file. The system does not allow for more than one attachment to be uploaded.

The shortlisted candidates may be asked to provide copies of diplomas and any other certificates providing evidence of their education and experience in relevant fields.

Any request for clarification must be sent by standard electronic communication to the e-mail vacancy.rs@undp.org. The procuring UNDP entity will respond by standard electronic mail and will send response, including an explanation of the query without identifying the source of inquiry, to all consultants.

Financial Proposal

Travel 

This is home-based engagement therefore no travel envisaged under this Terms of Reference.

Evaluation

Additional Information:

• Individual Contract (IC) will be applicable for individual consultants applying in their own capacity.  If the applicant is employed by any legal entity, IC would be issued upon submission of Consent letter from the employer acknowledging the engagement with UNDP. Template of General Conditions on IC could be found on: Template of General Conditions on IC could be found on: https://www.undp.org/sites/g/files/zskgke326/files/2022-07/General_Conditions_for_Individual_Contracts.pdf 
• Reimbursable Loan Agreement (RLA) will be applicable for applicants employed by any legal entity. Template of RLA with General Terms and Conditions could be found on: https://www.undp.org/sites/g/files/zskgke326/files/2022-07/PSU_Individual%20Contract_Model%20Reimbursable%20Loan%20Agreement.docx

In the case of engagement of Civil servants under IC contract modality a no-objection letter should be provided by the Government entity. The ‘no-objection’ letter must also state that the employer formally certifies that their employees are allowed to receive short-term consultancy assignment from another entity without being on “leave-without-pay” status (if applicable), and include any conditions and restrictions on granting such permission, if any. If the previous is not applicable ‘leave-without-pay’ confirmation should be submitted.

Engagement of Government Officials and Employees

• Government Officials or Employees are civil servants of UN Member States.  As such, if they will be engaged by UNDP under an IC which they will be signing in their individual capacity (i.e., engagement is not done through RLA signed by their government employer), the following conditions must be met prior to the award of contract:

          (i)       A “No-objection” letter in respect of the individual is received from the Government employing him/her, and;

          (ii)     The individual must provide an official documentation from his/her employer formally certifying his or her status as being on “official   leave without pay” for the duration of the IC.

• The above requirements are also applicable to Government-owned and controlled enterprises and well as other semi/partially or fully owned Government entities, whether or not the Government ownership is of majority or minority status.   
• UNDP recognizes the possibility that there are situations when the Government entity employing the individual that UNDP wishes to engage is one that allows its employees to receive external short-term consultancy assignments (including but not limited to research institutions, state-owned colleges/universities, etc.), whereby a status of “on-leave-without-pay” is not required.  Under such circumstance, the individual entering into an IC with UNDP must still provide a “No-objection” letter from the Government employing him/her.  The “no objection” letter required under (i) above must also state that the employer formally certifies that their employees are allowed to receive short-term consultancy assignment from another entity without being on “leave-without-pay” status and include any conditions and restrictions on granting such permission, if any.  The said document may be obtained by, and put on record of, UNDP, in lieu of the document (ii) listed above.