SA's first gas power tender ended with zero winners. What happens now

South Africa's first tender for privately built gas power stations has ended without a single winner. Electricity and Energy Minister Kgosientsho Ramokgopa said on 28 October that none of the four bidders could prove they would have enough gas to run their plants, so no preferred bidders were named and no capacity was awarded (SA Government).

The government wanted 2 000 MW of new gas-fired generation from this round. It got four bids worth 2 830 MW on 29 May 2026, but all four failed the tender's mandatory criteria (SA Government).

Who bid, and where would the plants have been?

Source: Engineering News

Why did every bid fail?

The tender required each bidder to show where its gas would come from. The department said South Africa imports most of its gas from Mozambique and has no terminal to receive liquefied natural gas (LNG) shipped in by sea. The bidders could not give gas supply assurances at the level the tender demanded, which the department called one of the main reasons none qualified (SA Government).

That Mozambican supply is also running down. Production from the Pande and Temane gas fields is expected to decline, which FlexED, the company behind the Khanyazwe bid, called a coming supply cliff (Engineering News). Industrial users already worry that supplies could dry up within a few years (Business Day).

Why does gas power matter for your electricity?

Gas plants can be switched on quickly when demand peaks or when solar and wind output drops. The government calls gas-to-power "critical" for keeping the grid adequate and flexible, and this 2 000 MW was part of the country's official electricity plan, the Integrated Resource Plan (SA Government).

The failed round does not mean any change to your supply today. It does mean that this new back-up capacity, meant to help the grid as old coal stations close, is now delayed with no new date.

What happens next?

• Ramokgopa said South Africa is "not retreating" from gas-to-power (SA Government).
• The department plans talks with gas suppliers, lenders, terminal developers and other industry players before deciding the programme's direction (SA Government).
• It mentioned a follow-up round, called Bid Window 1.5, but gave no launch date. Engineering News understands the four failed bidders will be allowed to bid again (Engineering News).
• The department said it will share more information before the end of 2026 (SA Government).

How has the industry reacted?

The Industrial Gas Users Association of Southern Africa called the outcome a "disaster" (Business Day). FlexED warned that South Africa "cannot afford a prolonged pause" on energy security and future gas supply (Engineering News).

Energy analyst Chris Yelland of EE Business Intelligence said it was another setback in government gas power plans dating back to 2015, including the shelved powership deal, and argued for a completely new approach. He also said gas should be weighed against options like battery storage and pumped storage (Engineering News).