Background

The EU signed an Association Agreement (AA) with Georgia in June 2014 to deepen political and economic relations and to gradually integrate Georgia into the EU’s internal market. This agreement entails the creation of a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Georgia. Under Article 333 of the Association Agreement (Cooperation between the Parties in the field of Agriculture and Rural Development), there is provision for ‘facilitating the mutual understanding of agricultural and rural development policies. To support Georgia improving rural development, the European Union (EU) launched its European Neighborhood Programme for Agriculture and Rural Development (ENPARD) in Georgia.

Within the framework of the third phase of ENPARD (ENPARD III), UNDP Georgia is implementing the project “Improving Rural Development in Georgia” (IRDG). The project contributes to improved governance in rural development (Output 1 and 4.1), rural economic diversification (Output 2 and 4.2) and sustainable environmental management (Output 3 and 4.3). The project’s activities will be carried out at national level and focus at local level on 8 target municipalities. It will continue until December 2022.

The project aims at introducing energy efficiency (EE) and renewable energy (RE) solutions at larger scale in rural areas, predominantly benefitting its 8 target municipalities but also including Georgian rural areas in general. In so doing, IRDG focuses on thermal solutions – thermal energy efficiency improvements and the generation of heat/cool. To achieve this, IRDG stimulates Georgian companies to discover and develop the rural market for thermal insulation and renewable energy.

Households in rural Georgia cover over 84% of their heating needs with wood and other conventional sources (GeoStat. 2017. Energy Consumption in Households. Table 3.5).  As a consequence, the extensive use of fuelwood and other inefficient biomass for cooking, heating and warm water in rural Georgia has direct negative consequences on the environment and the climate, as chopping down trees for fuelwood is causing forest and land degradation and generates sizeable carbon emissions. It also represents a high burden for rural households in terms of health due to indoor air pollution (Georgia has the world’s highest mortality rate due to outdoor and indoor air pollution) (World Bank Group. (2018). Georgia – From Reformer to Performer. p51) and generates negative social and economic impacts due to illegal logging and trading of timber. Additionally, rural households suffer from widespread energy poverty, spending in average, depending upon the source used, between GEL 850 and GEL 1,900 annually for energy needs.

Introducing energy efficiency solutions, such as wall insulation, roof insulation and double-glazed windows, and thermal renewable energies, such as solar water heaters, solar air heaters and heat pumps into rural areas at larger scale therefore provides ample space for cost reduction and improved living conditions.

The IRDG project’s 8 target municipalities are Lagodekhi, Dedoplistskaro, Tetritskaro, Borjomi, Akhalkalaki, Kazbegi, Keda and Khulo. A large survey conducted by the project revealed that for 68% of the population it is important or very important to care for the environment and 71% believe environmental protection is more important than economic growth, hence providing a sound base for energy efficiency investments based on environmental considerations. More importantly, 41.6% believe that better insulation and 19.5% that more efficient heating systems will improve their living standards or reduce cost.

The long-term potential market size is enormous: Within the 8 IRDG target municipalities, about 6% have a monthly household income of GEL 1,500 to GEL 3,000, and 5% of more than GEL 5,000 (vs. an average overall rural income of GEL 1,014.3) (https://www.geostat.ge/en/modules/categories/50/households-income). Together, these 8 municipalities comprise about 65,000 households. If only these top 11% income earners are considered as market it yields a potential market size of 7,150 households. In whole of rural Georgia, this increases to over 50,000 households.

IRDG aims at promoting EE and RE beyond the eight target municipalities to other rural areas. To achieve this, it plans to develop an online-tool/website for easy measurement of requirements and potential returns on investment. This tool shall be used by field experts, businesses and households alike.

Duties and Responsibilities

For a given list of EE/RE technologies, elaborate all data requirements and formula necessary so that the user can obtain correct and useful information on best suited materials/technologies to achieve a desired impact, and on expected cost savings.

For the following technologies, assessments shall be possible:

• Window caulking*
• Window films*
• Windows/door insulation with silicon sealant and similar materials*
• Front door insulation*
• Sealing of cracks and openings in walls*
• Wall, roof, top ceiling insulation with straw, reed/cane, mineral wool, Stone wool, styrofoam
• Floor insulation (floating floor)
• Replacement of windows (single-, double-glazed, different frames)
• 2 different simple solar air heating systems
• 2 different simple solar water heating systems
• Air-to-air, air-to-water, water-to-water, ground-to-water heat pumps
• 2 different professional solar water heaters

As baseline, users shall be able to use easily measurable and definable inputs, such as

• Location, altitude of dwelling
• Size of the dwelling (if required)
• Number of floors
• Type/inclination of roof
• Materials and thicknesses of walls and roofs
• Types, quantity and sizes of doors and windows (if required)
• Current heating system and consumption
• Interest rate
• Own capital
• If required, for simple solar water and solar air heaters also more specific information such as
  • Angle at which solar heaters are positioned
  • Diameters and materials of used tubes
  • Sqm of surface

By providing in a simple manner the baseline data the user shall be able to do the following assessments:

• Expected change in indoor temperature by using each one or combination of the above technologies
• Expected savings and return of investment period by using each one or combination of the above technologies
• Reverse calculation: identification of technologies that yield a given period of return of investment or indoor temperature.

The output of the consulting will only be

• the formula required to achieve all the before-mentioned assessments ready to be used by programmers of the desired on-line tool, including
• typical standard characteristics of the technologies as available in Georgia, and including
• a range of potential outcomes with an envisaged likelihood of +/- 20%, wherein those technologies marked with an “ * ”may have ranges of up to +/- 30%,
• a brief description how the user may identify materials and safely measure thicknesses, angles etc. and
• an assessment of the CO2 savings achieved.

Additionally, the consultant shall provide the calculation base for a real-time, online calculation of the CO2 savings achieved due to the installation of existing EE/RE technologies in 3 demo-sites. Meters installed in each of the participating households in those site will provide real-time data on use and temperature differences – these need to be converted into CO2 savings.

For relevant climate and topographic data, the consultant may refer the user to publicly available and easily understandable data, which the consultant must however pre-identify.

Deliverables and payment modality:

The contractor will report to IRDG’s Environmental Co-ordinator under the direct supervision of the Project Manager and the Project Technical Leader of the “Improving Rural Development in Georgia” project and in consultation with the UNDP Economic Development Team Leader.

Report comprising - due by 20 April 2021:  

• all required input data
• all formula
• all necessary links
• sample calculations for each formula and expected assessment and explanations              

The timely and high quality submission of the deliverable is a pre-condition of the payment. The payment will be processed in one installment. The official language of communication and reporting for the present contract is English.  

Competencies

• Demonstrates integrity by modeling the UN's values and ethical standards;
• Promotes the vision, mission, and strategic goals of UNDP
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
• Treats all people fairly without favoritism.

Required Skills and Experience

Education:

• Bachelor’s degree in engineering, physics, architecture, economics or other related discipline (minimum requirement: 10 points).

Experience:

• 5 years of professional experience in dealing with renewable energy, energy efficiency or any thermal analysis (minimum requirement: 18 points)
• Experience related to rural housing (from architectural, energy or economic side) an advantage (6 points).
• Experience in programming or website-design an advantage (6 points).

Language Requirements:

• Georgian and English.

Evaluation

Individual consultants will be evaluated based on the Cumulative analysis: Individual consultants will be evaluated against combination of technical and financial criteria. Technical evaluation stage encompasses desk review and interview of applications. Experts not meeting any of minimum technical qualification requirements will be automatically excluded from the list of candidates for further technical evaluation. Maximum obtainable score is 100, out of which the total score for technical criteria equals to 70 points (70%) and for financial criteria 30 (30%). Technical criteria composed of desk review (40 points) and interview (30 points). Offerors who pass 70% of maximum obtainable scores of the desk review (i.e. 40 x 70% = 28 points) will be invited for the interview. Those offerors who pass 70% of maximum obtainable scores for interviews of (i.e. 30x 70% = 21 points) will be considered as short-listed offerors and requested to provide financail proposals.

Financial Proposal:

The financial proposal shall specify a total lump sum supported by the respective breakdown of the total fee. Payments are based upon delivery of the services specified in the TOR.