Lack of gas-supply assurances sees no gas-to-power bidders selected in SA’s first bid window
Electricity and Energy Minister Dr Kgosientsho Ramokgopa has confirmed that none of the four bidders that made submissions under South Africa’s inaugural gas-to-power bidding round has been appointed as a preferred bidder. This, after none of the bidders were able to provide the gas-supply assurances required by the tender.
Through the first bid window of the Gas Independent Power Producer Procurement Programme, or GASIPPPP, government was aiming to procure 2 000 MW of generation capacity in line with the country’s Integrated Resource Plan for electricity.
The Department of Electricity and Energy issued a revised request for proposals (RFP) on October 20, 2025, following consultations with potential bidders, and received four bids offering a total of 2 830 MW on May 29 this year.
However, the department reported on October 28 that the bidders were unable to provide gas-supply assurances to the level required in the RFP, which meant that none of the bidders satisfied the mandatory functional criteria.
“Consequently, no preferred Bidders were appointed and no generation capacity was awarded for the GASIPPPP BW1,” the Minister said in a statement.
He added that South Africa would not retreat from it gas-to-power objectives, but that it was necessary to address the infrastructure, commercial and institutional conditions required to translate market interest into viable and deliverable projects.
Continued structured engagement involving relevant market participants would now be prioritised "to inform consideration of the programme's future direction".
"Any subsequent procurement process, including its requirements and timelines, will be subject to the necessary statutory, governance and procurement approvals.
"The Department will communicate further information through the appropriate official channels before the end of the calendar year," the statement reads.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
North Ridge Pumps is an independent manufacturer of pumps. We have a proven track record for product support and customer service throughout the...
VISIT SHOWROOM
ALBIS FLANGES — founded in 1965 — is a petro-chemical approved manufacturer of flanges and fittings in most grades of steel, listed with Sasol,...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
