Gas
South Africa reaffirms gas goals after maiden round fails
South Africa's initial gas-to-power procurement round concluded without awarding capacity, but energy authorities remain committed to future development.
Key points
- The first bid window of the Gas Independent Power Producer Procurement Programme ended with no preferred bidders.
- Four bids totalling 2,830MW failed to meet mandatory criteria, specifically regarding secure gas supply assurances.
- Electricity and Energy Minister Kgosientsho Ramokgopa stated the country is not abandoning its gas-to-power objectives.
What happened
South Africa has concluded the first procurement round of its gas-to-power programme without appointing a preferred bidder or awarding any generation capacity. According to Energy News Network, the Department of Electricity and Energy confirmed that none of the four submitted bids met the mandatory functional criteria outlined in the request for proposals.
The procurement round, which sought 2,000MW of generation capacity, closed on 29 May after the issuance of a revised request for proposals in October 2025. The four proposals offered a combined 2,830MW. However, the department reported that none of the bidders could provide the required level of fuel supply assurance.
South Africa imports the majority of its gas from Mozambique and currently lacks a domestic liquefied natural gas receiving terminal. These infrastructural and commercial limitations directly impacted the viability of the bids.
What comes next
Despite the setback, Electricity and Energy Minister Kgosientsho Ramokgopa stated that the government remains committed to its gas-to-power strategy. According to Energy News Network, Ramokgopa emphasised that authorities are focused on addressing the underlying infrastructure, commercial, and institutional conditions necessary to support future projects.
The department intends to utilise lessons learned from this initial process to shape a subsequent procurement phase, referred to as Bid Window 1.5. Further details and timelines are expected to be announced before the end of the year, subject to the necessary regulatory approvals.
Gas-to-power remains an integral component of South Africa's broader capacity planning. Ramokgopa previously determined 9,600MW of new capacity under the 2025 plan, which allocates 5,000MW specifically to gas generation alongside 4,600MW for battery storage.
Why it matters
This outcome highlights the complex realities facing African emerging markets as they attempt to integrate gas-to-power into their energy mixes without fully developed domestic supply chains or import infrastructure. For investors and policymakers across the continent, the South African experience underscores that regulatory frameworks alone are insufficient without concurrent investments in fuel supply logistics and terminal facilities.
With South Africa recording an electricity use per person of 3,308.2 kWh in 2024 according to World Bank figures, expanding reliable generation capacity remains a critical priority for industrial and domestic stability. The upcoming refinements to the procurement process will serve as an important test for how regional infrastructure deficits can be bridged to unlock private capital in African gas markets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
0.0% of electricity in South Africa came from gas in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
