South Africa awards none of 2,000 MW gas-to-power tender
By the AFREEQUE newsroom, based on Windhoek Observer
South Africa has awarded none of the 2,000 megawatts planned in its first tender to generate electricity from gas. The four bidders, offering a combined 2,830 megawatts, failed to show that they had sufficient gas supply, according to the Department of Electricity and Energy.
South Africa has awarded none of the 2,000 megawatts planned in the first phase of its tender for gas-fired electricity generation. All four bidders failed to meet the mandatory criteria, in particular because they lacked sufficient assurances of gas supply, according to the Department of Electricity and Energy, cited by the Windhoek Observer.
The bids submitted on 29 May 2026 totalled 2,830 MW. Minister Kgosientsho Ramokgopa said the outcome did not change the government’s commitment to including gas in South Africa’s electricity mix. He described the process as an opportunity to learn lessons about the infrastructure and commercial conditions needed to deliver the projects.
South Africa is heavily dependent on imported gas, particularly from Mozambique, and has no liquefied natural gas receiving terminal. The department plans to consult bidders, gas suppliers, lenders and terminal developers to guide the next steps in the programme.
The outcome follows the failure of the 2,000 MW gas tender, reported on 28 October. The process is part of South Africa’s gas-to-power procurement programme, launched in line with the national energy resource plans of 2019 and 2025.
