The Department of Electricity and Energy has amended the request for proposal (RFP) documentation for the inaugural procurement of 2 000 MW of gas-to-power and has also announced an extension to the bid submission date to May 29 next year.
The first bid window for the Gas Independent Power Producer Procurement Programme (GASIPPPP) was launched on December 14, 2023, with an initial deadline of August 30, 2024, which was subsequently extended to October 31, 2025.
However, following various clarification questions raised by prospective bidders, the department has now amended the RFP and extended the bid submission date.
It was confirmed that among the matters raised and considered before the RFP was amended included the load factor range, and the introduction of a “Revised Minimum Load Commitment option as contemplated in the Power Purchase Agreement”.
No specifics were provided, but the amendment follows the approval of the 2025 edition of the Integrated Resource Plan by Cabinet, and confirmation by Electricity and Energy Minister Dr Kgosientsho Ramokgopa that the plan caters for a minimum load factor of 50% for the initial gas plants introduced in South Africa.
The IRP 2025 envisages introduction of 6 000 MW of gas-to-power in the period to 2030 and that there will be 16 000 MW integrated into the system by 2039.
Another issue considered when amending the RFP was the project-on-project risk arising for bidders submitting responses for facilities located within the borders of the City of uMhlathuze, in KwaZulu-Natal, where there is a RFP requirement for them to secure their fuel through the natural gas storage and regasification terminal procured by Transnet National Ports Authority at the Port of Richards Bay.
“A potential bidder is required to satisfy itself as to the credibility of the Port Authority timelines and will be required to satisfy all the requirements and criteria prescribed in this RFP in respect of fuel,” the department said.
Also taken into account were the legal functionality criteria in relation to the requirement for environmental authorisations; the performance requirement for the frequency of the ramp ups and downs; and the gas pricing mechanism.
No details were provided regarding the specific changes made to the RFP, however.
The department also announced that it would host a virtual information sharing engagement to provide key updates on the RFP for the GASIPPPP Bid Window 1, but no date was immediately provided for the meeting.
“The GASIPPPP BW1 RFP is still available for access by all prospective bidders who wish to participate and register projects in compliance with the rules and requirements of the RFP, the department said.
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