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The Independent Power Producer (IPP) Office says South Africa’s first gas-to-power procurement process is progressing according to schedule, with bid evaluations at an advanced stage.The update comes as the gas industry awaits the announcement of preferred bidders, which market participants say is needed to provide demand certainty for planned liquefied natural gas (LNG) import and gas supply projects. The bidding window closed on May 29, and the IPP Office has previously indicated that preferred bidders would be announced about three months after the close of bidding.IPP Office head Precious Edward said the programme remains within the timeline communicated to the market.“We are on track with the [gas bidders] programme … we don’t foresee any date changes in this regard,” Edward said during the South Africa-China Energy Partnership Conference in Beijing this week.Four bids, representing about 2,800MW of generation capacity, were submitted, exceeding the government’s 2,000MW procurement target.Business Day previously reported that the preferred bidder announcement is expected to be a key milestone for South Africa’s gas sector, with developers and infrastructure investors awaiting greater certainty on future gas demand before advancing LNG import and gas supply projects.The Gas Independent Power Producer Procurement Programme is the country’s first competitive procurement process dedicated to gas-fired electricity generation. The projects are expected to provide flexible generation capacity to complement renewable energy and strengthen grid reliability.Beyond the gas-to-power procurement process, Edward said the IPP Office remains on course to issue the final request for proposals (RFP) for the first phase of the Independent Transmission Programme in the fourth quarter after engaging with prequalified bidders and refining the commercial framework.“We’ve been engaging with the prequalified bidders, and the commitment that is in the public space is that we committed to issue the final RFP in Q4,” she said. “We are still maintaining that position.”Business Day
