Beschreibung der Beschaffung
The ultimate goal of this assignment is a concept for an effective, comprehensive, feasible and ready to implement government financing/support instrument, to support, invigorate and scale up the market of green hydrogen and derivatives (Power-to-X/PtX) in Brazil. This concept shall include three to five instruments, packaged into ready to implement set of documents.
This suitable financial instruments can include, but not limited to: (partial) grants, fund structures, guarantees, revolving concessional loans, compensation and insurance schemes, risk mitigation instruments, structured debt/equity, subsidies, insurance, tax incentives, contracts for differences or auction mechanisms that help de-risk or lower capital costs, specifically investment cost (CAPEX)- and operating cost (OPEX), such as the German funding concept H2Global. The concept shall have the H2 market view and to be geared to the various involved target groups along the H2 value chain.
The concept shall be developed and coordinated with relevant national and international stakeholders. In particular, it must be adapted to the Brazilian institutional, economic, financial system, as well as to the policy and regulatory framework. Close assessment of and cooperation with the key public players in the financial sector, including development banks such as the largest state development bank BNDES, is an essential prerequisite for the development of a successful concept. The project team can facilitate the contact with relevant national (and international) partners, where appropriate.
The work package comprises the concept development for target focused financing mechanisms for market ramp-up of green H2/ PtX products for Brazil, and in specific, the following tasks:
1 Stock-taking of available green hydrogen financing mechanisms in the domestic and international market through an economic market environment study, comprising in-depth analysis of the H2 value chain and H2 environment, i.e. regulators, producers, electrolyzer construction companies/investors and off takers
2 Derive a matrix of suitable financing mechanisms for different cases/ scenarios along the H2 value chain
3 Development of 3 to 5 detailed financing mechanisms (final number to be decided with GIZ)
4 Proof of concept
5 Final comprehensive report on the set of financial instruments along the H2/PTX value chain and workshop presentation
Important elements of ensuring a high-quality of the concept development for a financing mechanism include, but are not limited to:
- Assessing/identifying key needs and barriers and developing/identifying appropriate strategies, solutions and activities to overcome the barriers (barriers may include for example good governance and/or regulatory barriers, technology risk and general market development uncertainty, RE generation capacity, high up-front costs, scalability barriers including market size and growth potential barriers, access to finance and capacity constraints of private/public institutions and organizations, financial sustainability, institutional capacities and others).
- Justification of use of public funds: Ensure that the use of public funds is well justified, following the principles of subsidiarity and additionality.
- In support of the GIZ team, providing verbal and written inputs for designing a convincing climate change driven theory of change. The theory of change shall form the basis and provide the framework to the project development steps and outputs.
- Conducting a quality control of all documents to be submitted to GIZ alongside the financing mechanism (including e.g. a baseline analysis and feasibility assessment of technologies)
The consultant, together with relevant GIZ units, will be responsible for planning and supporting the required assessments and dialogues with potential interested market players from the public and private sector for completing the final result of the study in form of a comprehensive report.