Iceland - Industry specific software package - Direct Award

Landsnet, the Icelandic transmission system operator, conducted a preliminary market consultation to identify available solutions for replacing its existing balancing software. The consultation was intended to provide Landsnet with a clear understanding of the technical capabilities, maturity, implementation requirements, and indicative pricing of solutions currently available on the market. The need to replace the existing software has become increasingly urgent. Support for the current solution is limited and has continued to decline, creating growing operational and technical risks. Consequently, time is of the essence, and Landsnet must ensure that a suitable replacement can be implemented without unnecessary delay. Companies offering relevant software were invited to submit information and present their solutions in online meetings. Landsnet subsequently met with the companies that responded and evaluated the information provided, including technical functionality, system compatibility, implementation readiness, and pricing. Particular attention was given to each solution’s ability to support the collection, calculation, activation, and reporting of balancing reserves, as well as its compatibility with Landsnet’s GE e-terraplatform EMS/SCADA system. The consultation indicated that two suppliers were able to offer solutions that were substantially ready for implementation and capable of meeting Landsnet’s requirements. However, there was a significant difference between the prices offered. One supplier presented an exceptionally favourable commercial offer that was considerably below the price level observed for comparable solutions during the consultation, while still providing a solution that was well suited to Landsnet’s operational and technical needs. Based on the information obtained, Landsnet concluded that conducting a full competitive tender would be unlikely to produce a commercially better outcome and would require a disproportionate investment of time and resources from both Landsnet and the participating suppliers. This would also risk delaying the replacement of the existing software at a time when its limited and declining support makes timely implementation particularly important. The market consultation had already provided a sufficient basis for comparing the relevant solutions, their capabilities, implementation readiness, and pricing. Landsnet therefore decided to proceed with the solution offering the best overall combination of suitability, implementation readiness, technical compatibility, and cost, subject to the applicable procurement requirements and the successful completion of contractual negotiations. Balancing Software manages balancing reserves by collecting, tabulating, activating and provides feedback on reserve capacity. The software has to be compatible with Landsnet GE EMS/SCADA system, e-terraplatform.