PRETORIA, Wednesday 28 October 2026 — Electricity and Energy Minister Kgosientsho Ramokgopa has confirmed that no preferred bidders were selected in South Africa’s first gas-to-power procurement round after all four applicants failed to meet mandatory gas-supply assurance requirements.
The outcome leaves the initial 2,000-megawatt procurement window without any awarded generation capacity and raises questions about the infrastructure and commercial arrangements needed to support government’s planned expansion of gas-fired electricity generation.
Four bids fail mandatory requirements
The Department of Electricity and Energy received four bids offering a combined 2,830 MW of generation capacity when submissions closed on 29 May 2026.
The first bidding window of the Gas Independent Power Producer Procurement Programme was intended to procure up to 2,000 MW of electricity generation capacity.
However, the department confirmed on Wednesday that none of the bidders provided gas-supply assurances meeting the requirements set out in the request for proposals.
As a result, none satisfied the mandatory functional criteria and no preferred bidders were appointed.
The outcome means no generation capacity was awarded under the first bidding window.
Gas availability remains a key obstacle
The department issued a revised request for proposals on 20 October 2025 following consultations with prospective bidders.
The procurement process required developers to demonstrate that their proposed power stations would have access to sufficiently reliable gas supplies.
Gas-fired electricity projects depend on fuel procurement arrangements, infrastructure such as ports and pipelines, and commercially viable supply contracts.
The failure of all four bids highlights the difficulty of coordinating electricity generation projects with the development of gas infrastructure and long-term fuel supply.
Government says gas-to-power plans will continue
Ramokgopa said the government remained committed to gas-fired generation despite the unsuccessful procurement round.
The minister indicated that further engagement with market participants would be undertaken to assess the programme’s future direction.
Any subsequent procurement process will require the necessary statutory, governance and procurement approvals.
The department said it would communicate further information before the end of 2026.
Outcome follows new 5,000 MW gas allocation
Earlier in October, Ramokgopa announced a separate ministerial determination prioritising 5,000 MW of gas-to-power capacity alongside 4,600 MW of battery energy storage.
The combined 9,600 MW allocation forms part of the government’s wider electricity planning framework.
The latest announcement does not cancel that broader allocation, but it demonstrates the challenges government faces in converting proposed gas generation capacity into projects that can be financed and delivered.
The first procurement round had been closely watched by developers and infrastructure investors seeking greater certainty about future demand for natural gas.
The department will now have to determine whether changes to procurement requirements, gas infrastructure arrangements or the commercial framework are necessary before another bidding process can proceed.
