Name of the Project
Gas Independent Power Producer Procurement Programme (GASIPPPP) – Bid Window 1 (BW1).

Location
The gas-to-power facilities can be located anywhere within the borders of South Africa.

Project Owner/s
Department of Mineral Resources and Energy (DMRE).

Project Description
Following the promulgation of the Integrated Resource Plan 2019 in October 2019, the Minister of Mineral Resources and Energy determined that the procurement of new-generation capacity is required to ensure energy security, and that about 3 000 MW would be generated from gas.

On December 14, 2023, the DMRE issued the request for proposal (RfP) to procure 2 000 MW under the GASIPPPP BW1, including ancillary services and energy output, which will be derived from land-based gas-fired power generation facilities.

The remaining 1 000 MW has been reserved for a separate procurement process, which will be undertaken to establish new-generation capacity by one or more facilities, to be located in the area known as Zone 13, in the Coega Special Economic Zone, near the Port of Ngqura, in the Eastern Cape.

The GASIPPPP BW1 limits bidders to the construction of greenfield facilities, ruling out the conversion of the diesel-fuelled Avon and Dedisa open-cycle gas turbines to gas.

Projects can, however, share infrastructure with existing facilities, but such infrastructure must have unconditional and irrevocable rights in the shared infrastructure.

Plants of between 300 MW and 1 000 MW will be considered and they will be expected to operate at a maximum load commitment of 65% and a minimum of 40%, with State-owned power utility Eskom to dispatch the facility, in line with an agreed monthly load commitment.

The facilities, which will sell electricity to Eskom for 20 years, will be compensated for capacity, energy and ancillary services.

Potential Job Creation
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
The DMRE issued a general notice in May 2024, communicating to prospective bidders clarification issues raised by the market and which the department is considering. These are being addressed and communicated through briefing notes. 

As part of clarification questions, registered bidders also requested that the bid submission date be postponed, allowing for more time to prepare compliant bid responses, including time to acquire required consents and authorisations. 

The department has considered the market requests for additional time and has decided to extend the bid submission date to March 25, 2025.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Independent power producer project officer, email Query@ipp-rm.co.za.