Public procurement notice: Contract Award Notice
Published: 2024-10-30
Region: DEA22
Contract type: Services
Procedure: Negotiated with prior call for competition
CPV classification: 65300000: Electricity distribution and related services
Estimated value: 488372.29 EUR
Award criteria: price, quality

Technical requirements: According to Article 160, Section 3 of the German Act Against Restraint of Competition (GWB), application for review is not permissible insofar as
1. the applicant has identified the claimed infringement of the procurement rules before submitting the application for review and has not submitted a complaint to the contracting authority within a period of 10 calendar days; the expiry of the period pursuant to Article 134, Section 2 remains unaffected,
2. complaints of infringements of procurement rules that are evident in the tender notice are not submitted to the contracting authority at the latest by the expiry of the deadline for the application or by the deadline for the submission of bids, specified in the tender notice.
3. complaints of infringements of procurement rules that first become evident in the tender documents are not submitted to the contracting authority at the latest by the expiry of the deadline for application or by the deadline for the submission of bids,
4. more than 15 calendar days have expired since receipt of notification from the contracting authority that it is unwilling to redress the complaint.
Sentence 1 does not apply in the case of an application to determine the invalidity of the contract in accordance with Article 135, Section 1 (2). Article 134, Section 1, Sentence 2 remains unaffected.
The project "Sector Coupling and Green Economy in Brazil" is comprised of a total of 3 Outputs. In specific, the contractor is expected to contribute to the achievement of the goals described in Output 2; to contribute to the goals in Output 3, to achieve the objectives under output indicator 2.1 and to contribute to the goals of output indicator 3.2., further described below.
Output 2: In selected companies, the economic advantages of electrifying industrial processes with electricity from renewable sources have been demonstrated.
- 2.1 Output Indicator: 3 potential studies have shown the economic benefits of electrification, including the use of digital tools for demand-side load control in selected sectors.
o Base Value: 0 (There are no potential studies on the electrification of industrial processes.)
o Target Value: 3 Potential Studies (2023)
- 2.2 Output indicator: The economic feasibility of converting industrial processes from the use of fossil fuels to electricity from renewable sources was demonstrated in six companies.
o Base Value: 0 Companies (Electrification with RE is being discussed in the Brazilian industry, but has not yet been implemented)
o Target Value: 6 Companies (2025)
Output 3: Needs-driven electrification concepts with electricity from renewable sources are included in the future development of national decarbonisation strategies.
- 3.2 Output indicator: Brazilian business associations have included two electrification concepts based on the needs of their member companies, developed by international research groups, in their recommendations for decarbonization.
o Base Value: 0 Concepts for Direct Electrification
o Target Value: 2 need-based concepts (2024)
In this context, the objective of this assignment is to develop a study aimed at assessing the technical and economic potential, and the environmental impact associated with the electrification of three selected subsectors within the Food and Beverage industries in Brazil. The Food and Beverage industry was selected because it represents the largest energy consumer among Brazilian industries. According to EPE, in 2022, the industry sector represented 86.949 103 tep in terms of energy consumption in Brazil, from which 8,3% was consumed by the Food and Beverage industry.
The contractor should cover two well-known readily available electrification technologies (heat pumps and e-boilers) as well as other potentially feasible electricity-based decarbonisation technologies emphasizing their implementation for the supply of thermal energy (heat, cold, pressure, steam) within the low and medium temperature ranges (up to 200°C) in industrial processes of three Food & Beverage subsectors. In this context, the specific objectives of this assignment are outlined as the following: 
1. Provide a detailed description of the sequential stages of the production processes in the selected industry subsectors, focusing from raw product to final product, indicating the stages that require thermal energy and the energy sources currently used. 
2. Assess the potential for the best suited electrification technologies to decarbonise the three selected subsectors. In this context, the study showcases exemplary global practices of the decarbonisation of the respective subsectors, with a focus on, but not limited to, the utilisation of heat pumps and electric boilers. Additionally, the study delves into the technical specifications and production aspects of these technologies. 
3. Analyse the environmental impact of the implementation of direct electrification technologies in the selected industry subsectors. In this context, the study calculates potential savings in fossil fuel usage and associated CO2-eq emissions, and it estimates the increase in electricity demand and its linked CO2-eq emissions resulting from a higher electrification of the production process.
4. Address the economic landscape of energy sources currently used within the subsectors, by examining costs, potential price variations, and maintenance considerations related to heat pumps and electric boilers. 
5. Identify financing options both globally and within Brazil to foster the electrification of thermal energy demand in industrial processes. For that purpose, the study details financing options, encompassing aspects like duration, interest rates, and other pertinent financial considerations.
6. Contextualize the general scenario for electrification of industrial thermal energy demand in Brazil, by presenting both international commitments assumed by the country and national policies influencing industrial electrification. 
7. Explore the potential for flexibilization of the electricity demand in the entire value chain of the companies active in the selected subsectors, after the (hypothetical) implementation of direct electrification technologies. 
8. Develop three direct electrification guides tailored to the needs of three industry associations representing the three selected Food and Beverage industry subsectors.

An Activity Planning and Methodological report is requested at the beginning of the assignment. The general outline and the milestones as well as the requirements for short-term experts, international and national, should be prepared and agreed upon with GIZ"s Commission Manager (AV). The contractor shall provide a Team Leader with international expertise who shall be responsible for the implementation of project activities and the achievement of the specific objectives as described above. The team leader supervises and steers coordination, qualities, cost, and schedule. The contractor shall provide a Senior Expert with national expertise who shall be responsible for the coordination of local activities with national partners and GIZ"s project staff. The contractor shall also provide a pool of international experts to be assigned to specific project activities.
If contract extensions are considered, then cost-neutral contract extensions.
Context
Brazil has today one of the electricity grids with the largest share of renewable energy sources in the world. In 2023, renewables accounted for 93.1% of all electricity generated in the country and the forecast is that the share of renewables in the energy mix will continue to increase, especially wind, biomass, and photovoltaic energy.
However, energy-related emissions in Brazil have increased sharply over the past 20 years, especially in sectors such as industry (+39%). In the industrial segment, renewable energy covers currently 62% of energy demand.
According to data from the Energy Research Company (EPE), industry represents today one of the largest segments of energy consumption in the Brazilian economy. The Institute of Energy and Environment (IEMA) attributes about 30% of annual greenhouse gas (GHG) emissions from fossil fuel consumption in Brazil to the industry sector (159 Mt CO2-eq). Direct electrification with renewable energy makes it possible to reduce emissions in industry.
Many industrial processes that use thermal energy, for example in the food & beverage sector, rely on fossil fuels such as LPG or fuel oil to cover their demand. In these processes there is considerable potential for direct electrification and efficiency improvements in the supply of heat, cold, pressure, and steam.
Objective
The project seeks to contribute to making industry in Brazil more climate neutral and environmentally friendly.
Methodology
In the wake of the 2015 Conference in Paris (COP 21), Brazil announced that it will reduce its greenhouse gas emissions by 43% by 2030, compared to 2005. To achieve this, in addition to the increased use of renewable energy, energy efficiency should be increased by 10%.
Therefore, the coupling of the main energy-consuming sectors, with the generation of renewable electricity offers an immense potential for decarbonization in Brazil. An effort that is in line with the goal set by the country to achieve climate neutrality by 2050 and that can contribute to transforming Brazil into one of the greenest and most competitive economies globally.
In this sense, the project Sector Coupling and Green Economy seeks to work together with federal ministries, companies, and research institutes to foster direct electrification in industry to replace fossil energy sources. The project will work together with 6 companies to conduct studies that identify, among others, the potential for direct electrification of processes and measures for process optimization through direct electrification. Based on these studies, pilot projects will be carried out for the electrification of processes through innovative technologies available in the market and testing of digital tools to enable demand-side load management. In addition, the project will seek the dissemination of the solutions it identifies.
In addition, the project will seek articulation with business associations and research institutions for the development of electrification concepts based on the needs of associated companies, as well as concepts for the dissemination of direct electrification to other regions and other Brazilian industries.
Impact
The opportunities and potential of direct electrification have not yet been systematized or disseminated. Through the Sector Coupling and Green Economy project, the expectation is an increase in the interest for fostering direct electrification and related technologies that contribute to decrease emissions in industry. In this way, industry will be able to play a more active role in the energy transition.
Regarding the direct impact, it is expected that the project will contribute to reducing annual greenhouse gas emissions by at least 5,000 tons of CO2-eq in 4 Brazilian companies.


Winner: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Award value: 348180
Number of bids: 3