RFP No : SON/GS/2025-01

Established in 2008, SwitchON Foundation is a prominent non-profit organisation dedicated to Environmental Sustainability and Equal Opportunities. With a footprint across 10 Indian states, the Foundation drives impactful initiatives in Clean Energy Access, Sustainable Agriculture, Skilling, Clean Air, and Sustainable Cities. Its core competencies lie in innovative project execution, capacity building, on-ground implementation, community awareness, and evidence-based advocacy. With a vision to transform 10 million lives, SwitchON champions sustainability and innovation to foster better livelihoods, enhanced well-being, and a healthier planet for all.

Skills and Just Transition is a flagship programme of SwitchON Foundation aimed at equipping youth with green skills to enable employment and entrepreneurship. Leveraging digital platforms and smart skill centres, the programme contributes to the development of a sustainable economy. It works in alignment with government schemes and global innovations to promote a fair and inclusive transition.

Under this programme, the Low Carbon Steel initiative—formally titled “Decarbonising the Steel Sector and Promoting Green Steel in Eastern India”—focuses on catalysing the transition to low-carbon steel production, particularly within the MSME steel sector in West Bengal, Jharkhand, and Odisha. The initiative is driven by robust research comprising both secondary sources (such as academic and industry publications) and primary inputs (including Key Informant Interviews and stakeholder engagements).

A key insight emerging from this research highlights the critical need for energy audits in MSME steel units. Presently, there is a pronounced lack of transparency regarding energy consumption patterns in these facilities, often resulting in inefficiencies and overuse. Energy audits present a targeted solution to these issues by generating actionable intelligence on operational inefficiencies. These insights can inform MSMEs on how to optimise energy use, lower operational costs, and lay the groundwork for their decarbonisation journey.

The objective of this Request for Proposal (RfP) is to identify and onboard a technically competent and experienced agency to undertake investment-grade energy audits for MSME steel units. The selected agency will be responsible for recommending practical interventions and supporting the development of a strategic roadmap for energy efficiency and low-carbon transition.

1. Industry Profile for Energy Audit

Energy audits are being commissioned for four MSME-scale steel manufacturing units located in Jharkhand and West Bengal. Techno-commercial Proposals are being invited from qualified agencies for undertaking comprehensive electrical and thermal energy audits across these units.

The selected facilities represent a range of MSME steel operations, where manufacturing processes such as sponge iron production, billet casting, TMT bar rolling, wire rod and binding wire manufacturing, and refractory material processing are being carried out. The primary materials produced include sponge iron, billets, TMT bars, HB wire, binding wire, and refractory bricks.

Key equipment in use includes blast furnace (BF), induction furnace (IF),  electric arc furnaces (EAFs), crushers, grinders, mixers, electric/hydraulic screw presses, rolling mills, and high-temperature tunnel kilns. Significant electrical loads are observed across units, often with issues related to power factor, harmonics, and voltage imbalance. On the thermal side, substantial heat loss is reported due to interrupted processes, frequent sampling, and inefficient firing systems, particularly in kilns and furnaces.

2. Scope of Work

The objective is to conduct in-depth energy audits across selected MSME steel mills and develop mill-specific decarbonisation roadmaps. The scope includes:

Energy Audits (Electrical & Thermal):

• Electrical: Assess power factor, harmonics, voltage imbalance,  use of energy-saving devices (VFDs, high-efficiency motors, capacitor banks), etc. Map load profiles across processes to identify inefficiencies.
• Thermal: Analyse heat loss in furnaces due to poor insulation, flue gas, idle times, interruptions (e.g., sample withdrawal), etc. Use appropriate technologies like IR thermography, direct measurements for diagnosis, as applicable.

Benchmarking:

• Establish baseline energy intensity (e.g., kWh/ton, GJ/ton).
• Compare performance across peer MSME units and sector best practices.

Inefficiency Identification & Interventions:

• Recommend corrective actions: power factor correction, harmonic filters, Waste Heat Recovery System (WHRS), insulation upgrades, process optimisation, etc.
• Classify interventions by cost and ease of implementation.

Savings Estimation:

• Quantify electrical and thermal savings (kWh, GJ, ₹), GHG reduction (tCO₂e), and Return on Investment (ROI)/payback periods.
• Provide a cost-benefit matrix to guide investments.

Decarbonisation Roadmap:

• Deliver tailored action plans outlining short, medium, and long-term steps, including financial needs, policy linkages, and carbon market opportunities.

3. Deliverables

4.Eligibility Criteria

Minimum Experience: 5+ years conducting rigorous energy audits in steel industries, preferably including both government and private sectors.

Legal Compliance:

• Registered entity authorised to operate in India.
• Valid professional and general liability insurance.

Financial Standing:

• Stable financial performance with positive cash flow for at least 2 years.
• Submission of audited financials for the last 5 years.

5. Proposal Submission Guidelines

• Submit Technical and Financial proposals (financial proposal should be all inclusive (fee and Overall Production Effectiveness (OPEs) in separate files.
• Language: English
• Format: Times New Roman, font size 12
• Length: 5–6 pages, excluding annexures
• Submit to: Mainak Das (mainak@switchon.org.in), Aditi Roy Chowdhury (aditir@switchon.org.in) 

6. Application Timeline

7. Evaluation Criteria

Proposals will be evaluated based on:

Shortlisted agencies may be invited for a brief virtual discussion.

8. Payment Terms

• This is a deliverables-based contract.
• Payment should match the deliverable milestones. Payment will be made in tranches:
  • 30% upon successful completion of on-site audits
  • 40% upon submission of draft reports
  • 30% upon approval of final reports and presentation

• All payments are subject to Tax Deducted at Source (TDS) and applicable tax deductions.

9. Terms and Conditions

• SwitchON reserves the right to reject any or all proposals without assigning any reason.
• All data and reports generated will be the intellectual property of SwitchON Foundation.
• The agency shall ensure strict confidentiality of all field data and findings.
• Steel mills to be audited are already finalised.
• The selected agency is expected to ensure field readiness and deployment within 48 hours of contract signing.
• The financial proposal should be all-inclusive (fees and Overall Production Effectiveness (OPE)

Attachment: RFP Document PDF