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TERMS OF REFERENCE
ALBANIA  Renewable Energy Programme: Power Sector Law

1. Background

The European Bank for Reconstruction and Development (“EBRD” or the “Bank”) and the Albanian
Ministry of Infrastructure and Energy (“MIE”) have been cooperating since 2017 to develop the legal and
regulatory framework for the electricity sector in the country (where generation is dominated by renewable
resources) and to design and implement competitive tender processes for solar and wind resources, through
EBRD’s Renewable Energy Programme (“RE Programme”).
In the 4th Energy Package of the European Commission ("Clean Energy Package"), the EU adopted a
number of new laws to make the EU electricity market fit for the challenges of the clean energy transition.
This includes the revised electricity market regulation (“Electricity Regulation 2019/943”), the revised
electricity market directive (“Electricity Directive 2019/944”), a risk preparedness regulation (“RPR
Regulation 2019/941”) and an enhanced role for the EU Agency for the Cooperation of Energy Regulators
(“ACER”) through the “ACER Regulation 2019/942”. The aim is to contribute to the implementation of
the Energy Union, combat climate change and create a framework that leads to concrete benefits for
citizens, job creation, growth and investments in clean energy.
As part of its commitments under the Energy Community Treaty, Albania now needs to transpose the EU
Electricity Directive 2019/944, Electricity Regulation 2019/943, ACER Regulation 2019/942, RPR
Regulation 2019/941 by the end of 2023.
Following the successful cooperation to date, where for the past 5 years the Bank has worked on a number
of improvements to the legal and regulatory framework of the country, including amendments to the newly
amended Renewable Energy Law, and developed competitive tender processes (two government-selected
site solar PV auctions, one onshore bidder-selected auction and is developing a bidder-selected solar
auction), MIE now wishes to expand the scope of the ongoing RE Programme to include the revision of the
Power Sector Law (No. 43/2015), with a view to identifying the amendments needed to transpose the
above-mentioned directives and regulations.
Therefore, the Bank wishes to engage a Consultant to provide comprehensive support to authorities on the
revisions to the Power Sector Law.

2. Objectives

The main objective of the Project is to revise and propose concrete amendments to the Power Sector Law
(No. 43/2015) that are consistent with the Clean Energy Package and transposes the relevant regulations
into Albanian law. This includes, among others, the transposition of the Electricity Directive 2019/944,
RPR Regulation 2019/942 and Electricity Regulation 2019/943. In addition, the Assignment will take into
account the national context to ensure consistency with existing energy legislation and/or propose
subsequent amendments to secondary pieces of legislation that require revisions following the amendments
to the Power Sector Law.

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The objectives of this Assignment are to:

 Part 1: Review the Power Sector Law (43/2015) and relevant primary and secondary legislation.
 Part 2: Prepare a gap analysis of the Power Sector Law in relation to the Clean Energy Package.
 Part 3: Provide concrete recommendations on the amendments to the Power Sector Law required
for the transposition of the Clean Energy Package, considering the Albanian national context.
 Part 4: Assist MIE in incorporating such amendments and in relevant discussions with stakeholders
as well as incorporate feedback received as part of the public consultation process.

3. Scope of Work
To achieve the above objectives, the Consultant shall perform the following activities:
Part 1: Review the Power Sector Law (43/2015) and relevant primary and secondary legislation
Task 1: Review the Power Sector Law (43/2015), relevant of primary and secondary electricity legislation

The Consultant will review and revise existing legislation and materials related to ongoing reforms,
including:

(a) The Power Sector Law (43/2015)

(b) Relevant Decisions of the Council of Ministers and other relevant bylaws
(c) Review secondary legislation relevant to the electricity sector (including the Renewable Energy Law).
(d) Review the plans for electricity market reforms (including those related to Albania’s obligations under
the Energy Community Treaty)
(e) Review outputs from previous and ongoing assistance to the Albanian authorities under the EBRD RE
Programme or made available by MIE.
The output of this Part 1 should be a summary and inventory of the legislative texts, materials and previous
and/or ongoing technical assistance relevant to the power sector.

Part 2: Prepare a gap analysis of the Power Sector Law in relation to the Clean Energy Package
Task 1: Review the Clean Energy Package
The Consultant should review relevant Directives and Regulations that needs to be transposed as part of
Albania’s commitments under the Energy Community Treaty. This includes, but is not limited to:
 Electricity Directive 2019/944;
 Electricity Regulation 2019/943;
 ACER Regulation 2019/942;
 RPR Regulation 2019/941;
 Any other relevant documents.

As part of this Task 1, the Consultant should also (i) identify the actions that are needed, by the relevant
Albanian stakeholders (Ministries, Regulatory Authority, Transmission System Operator, etc.); (ii) assess
the legal, regulatory, economic, social and technical impact of the transposition of the provisions of the
Directive and Regulations, to the extent these apply to Albania, taking into account the various impacts,
such as but not limited to, cross-border trading.

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Task 2: Gap analysis of the necessary amendments to the Power Sector Law
Considering Part 1 of this Assignment and the outcome of Task 1 of this Part 2, the Consultant should
prepare a detailed gap analysis of the Power Sector Law, clearly identifying what parts require
amendments or modifications and how these interplay with the remaining legal and regulatory framework
of the electricity sector in Albania.

Part 3: Provide concrete recommendations on the amendments to the Power Sector Law required
for the transposition of the Clean Energy Package, considering the Albanian national context

Considering the outcome of Part 2 – gap analysis, the Consultant should propose concrete
recommendations, identifying specific provisions that would need to be updated / modified / removed to
ensure compliance with the Clean Energy Package. The Consultant should consider what is the scale of
amendments required and whether this would merit the draft of a new law.
The recommendations should be tailored to the Albanian context and must identify, if applicable, what
other pieces of national legislation require changing (if any) for full transposition of the Clean Energy
Package.
The outcome of this task should be a report with the detailed recommendations and amendments required,
providing the specific wording to be modified or new wording to be introduced.

Part 4: Assist MIE in incorporating such amendments and in relevant discussions with stakeholders
as well incorporate feedback received as part of the public consultation process

Task 1 Provide a draft of the Power Sector Law incorporating the amendments and recommendations from
Part 3
Considering the outcome of Part 3 and following discussions with relevant stakeholders, prepare a revised
draft Power Sector Law. The draft Power Sector Law should be translated into Albanian language for the
necessary consultations.

Task 2 Assist MIE in incorporating feedback from consultations (including public consultations)
Once MIE has conducted the relevant rounds of consultations (including public consultations), the
Consultant will assist MIE in assessing the feedback received and provide a draft final version of the
Power Sector Law. Note that the Consultant is not expected to conduct public consultations, but rather
have a final review of the feedback collected by MIE with a view of producing the draft final version of the
Power Sector Law to be submitted to Parliament for approval. The draft final version should be translated
to Albanian language, once agreed by all parties in English language.

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4. Deliverables
At the start of the Assignment, the Consultant will prepare a work plan for implementing the tasks of this
Assignment and relevant timeline. The work plan and timeline will be then presented to the EBRD, the
MIE, and relevant national authorities and agreed as part of the kick-off meeting.
The Consultant shall submit the following written deliverables:
Part 1: Summary report and inventory of the legislative texts, materials and previous and ongoing technical
assistance relevant to the power sector
Part 2: Detailed gap analysis of the necessary amendments to the Power Sector Law
Part 3: Report with the detailed recommendations and amendments required, providing the specific
wording to be modified or new wording to be introduced
Part 4:
4.1 Draft Power Sector Law (in English and Albanian language)
4.2 Draft Final Power Sector Law (in English and Albanian language)
The timeline to launch and deliver this Assignment is very tight and the Consultant is expected to deliver
the final draft of the power sector law by December 2023, or as agreed with the Bank and the MIE.
The timeline for the key deliverables of this Assignment will be agreed during the inception phase between
all parties in the kick-off meeting.
The kick-off meeting will take place within 2 weeks from contract signing and will involve the Consultant,
the Bank and the MIE.
The deliverables should be concise and succinct, Wherever possible in the reports delivered, the Consultant
shall supplement text with well-designed visual representations (for example, graphs, diagrams or tables)
to improve clarity and engagement and to make it easy to follow and digest, rather than a long text-oriented
document. Assumptions should be specified and all sources of information noted. Annexes should be used
to provide detailed reviews, extended analysis, and data gathered (including in table format). Each
deliverable should be reviewed, edited and presented with high professional standard and quality. All
reports shall be submitted and presented in an electronic format using Microsoft Word and PowerPoint for
Windows. All spreadsheets should be in Microsoft Excel for Windows. All deliverables shall bear the
logos of all relevant project stakeholders. The Consultant is expected to check with EBRD Operation
Leader to make sure visibility requirements are satisfied.

5. Implementation Arrangements

The Assignment will be carried out by the Consultant selected by the Bank, in accordance with the Bank's
Corporate Procurement Policy. The Consultant will have an initial meeting with MIE at the start of the
Assignment to clarify the precise scope of each task. The Consultant may also have several meetings with
relevant stakeholders, depending on the needs of the Assignment, during the course of the Assignment both
to provide envisaged assistance as well as to receive feedback. Due to the nature of the Assignment, the
Consultant is expected to be able to provide on-going support to MIE locally throughout the Assignment,
sometimes at short notice.

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The Assignment will be managed and overseen by the Bank’s staff headed by the Bank’s Operation
Leader, whereas MIE will appoint a team member who will be the counterparty of the Bank’s Operation
Leader. The team member appointed by MIE will serve as the contact person and interface for the
Consultant’s and the Bank’s communications with MIE.

The Consultant will provide its reports to both the Bank and the Authorities. Note that the Consultant will
be responsible for providing suitably qualified interpreters/translators to work with their staff as well as
arranging for any required interpreting or translations of documentation if needed and as agreed at the kick-
off meeting with MIE. It is anticipated that the draft Power Sector Law and the draft final Power Sector
Law will require translation into Albanian language

The Consultant will be expected to travel to Albania, provided that travelling is safe and possible. The
Consultant will be responsible for all costs related to the assignment, such as communication, travel to
Albania, accommodation, interpretation and translation and other relevant expenses. In case travel is not
possible, all meetings and site visits will be managed via teleconference.
6. Consultant’s Profile
The Consultant’s team of experts should cover all required expertise and include the following key experts
(the “Key Experts”):
a. Key Expert 1 – Team Leader: senior expert, with preferably a minimum of 10 years of experience
in advising on power and electricity market policy and regulation, implementing energy market
principles, and a good degree of legal expertise in primary and secondary law drafting, as well as
previous experience in similar assignments. Experience in project management preferable.

b. Key Expert(s) 2: International Legal Experts(s) with preferably a minimum of 5 years of

experience in the EU electricity policy, law and regulations, including regulatory drafting
experience related to the 4th Energy Package.

c. Key Expert(s) 3: Local Legal Expert(s) with preferably a minimum of 5 years of experience in the
Albanian power and electricity policy, law and regulations, with good drafting skills and
availability to work closely with the Ministry’s experts.

d. Non-Key Expert(s) 1: International Electricity Expert(s) with preferably a minimum of 10 years

of experience in EU power and electricity policy, with good understanding of the Energy
Community Countries (preferable Albania). This expert’s background can be in either engineering,
economics or related discipline.

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