ENQEIR928 Low Carbon Inertia Services (LCIS)

AI-generated analysis of the documents. Check the official notice and any amendments for current submission details.

1. At a glance

2. Scope of Work

The Low Carbon Inertia Services (LCIS) contract aims to procure synchronous inertia, reactive power support, and short-circuit contribution from low-carbon technologies. This initiative is part of EirGrid's strategy to maintain system stability as Ireland transitions to a low-carbon electricity system. The scale of the procurement targets a total inertia volume of 10,000 MVA.s, with a maximum of 12,000 MVA.s, split between EirGrid and SONI.

Key activities include:

• Provision of Synchronous Inertia: Each Providing Unit must deliver inertia capability between 900 MVA.s and 4,000 MVA.s.
• Reactive Power Support: Services must be provided without exporting active power to the transmission system when synchronised.
• Short-Circuit Contribution: This is essential for maintaining system stability during high levels of non-synchronous renewable generation.
• Performance Monitoring: Applicants must comply with performance metrics set out in the LCIS Contract and protocol, which will be detailed at the Tender Stage.

The contract will be awarded under a Qualification System, allowing for flexibility in addressing future uncertainties and evolving system needs. The anticipated number of contracts to be awarded ranges from 3 to 11, depending on the bids received.

3. Background & buyer context

The procurement of LCIS is driven by the need to support the integration of renewable energy and reduce reliance on carbon-intensive generation in Ireland. This initiative follows the SEM Committee's decision to develop a procurement process for Low Carbon Inertia Services, with Phase 1 having successfully secured 10,000 MVA.s of services. The current tender is part of Phase 2, which aims to further enhance system stability as renewable generation increases. EirGrid has a history of engaging with stakeholders to refine the requirements and contractual framework for these services.

4. Eligibility & selection criteria

Bidders must meet the following eligibility and selection criteria:

• Turnover requirement: Minimum average annual turnover of €8,630,000 in relevant services over the past three financial years.
• Insurance:
• Employers Liability: €13,000,000 any one occurrence
• Public Liability: €6,500,000 any one occurrence
• Professional Indemnity: €5,000,000 in the annual aggregate
• Certifications: Applicants must hold ISO 9001:2015 or equivalent certification.
• Past experience: Minimum of 3 comparable projects completed within the last 5 years.
• Personnel: Key personnel must have a minimum of 5 years' experience in relevant fields.
• Geographic constraints: Not specified for this tender.

5. Award criteria & scoring

Bids will be evaluated based on the following criteria:

The evaluation will follow the Most Economically Advantageous Tender (MEAT) principle, focusing on the best balance between price and quality.

6. Submission requirements

Bidders must submit the following documents:

• Method statement / response document: Use the provided template, adhering to specified page limits.
• CVs: For key personnel, limited to 2 pages each.
• Pricing schedule: Must follow the designated format and template.
• Case studies: Minimum of 2, with values ranging from €1 million to €5 million.
• Declarations: Including ESPD, Bona Fides, Tax clearance, and Conflict of Interest.
• Mandatory site visit: Not specified.
• Submission portal: Responses must be submitted via eTenders, following specific format rules.

7. Key dates & process

8. Contract terms that matter

Key terms include:

• Contract duration: Not specified, but the Qualification System is expected to be maintained for 5 years.
• Payment terms: Not detailed in the documents.
• Performance monitoring: Continuous evaluation of service providers based on KPIs.
• Liquidated damages: Potential penalties for poor performance may include reduced payments or contract termination.
• Sub-contracting rules: Not specified.
• IP ownership: Not detailed.

9. Risks, red flags & unusuals

Potential risks include:

• High turnover threshold: The required turnover of €8,630,000 is close to the expected contract value, which may favour larger incumbents.
• Geographic constraints: Not specified, but may limit competition if certain areas are excluded.
• Regulatory approval: Future call-offs are subject to regulatory approval, which may introduce uncertainty.

10. SME fit assessment

Small to medium-sized enterprises (SMEs) that can credibly bid must have:

• Relevant experience in providing inertia services or similar.
• The capacity to meet the insurance and turnover requirements.
• Potential for consortium or subcontracting arrangements, although specifics are not detailed.
• Indicative bid preparation effort is estimated at 10-15 days.
• The incumbent's strength may signal a competitive disadvantage for new entrants.

11. Where to dig deeper

• Source RFT filename: ENQEIR928_LCIS Phase 2_Qualification Document (QSQ).docx
• eTenders CFT ID: not specified
• Contact email: [email protected]
• Important attachments:
• Qualification System Questionnaire
• LCIS Phase 2 Presentation
• TSO Consultation Paper (July 2025)