On December 14 2023, the then department of mineral resources & energy — now the department of electricity & energy — issued the Request for Proposal (RFP) to procure 2,000MW of new, gas-fired generation capacity under the Gas Independent Power Producer Procurement Programme (GIPPPP) Bid Window 1 (BW 1).
The RFP includes a clarification process, allowing registered bidders to raise questions after its release to the market. The department will consider such questions and provide responses to registered and prospective bidders and where appropriate issue Briefing Note(s).
Prospective bidders raised matters which required due consideration by the department. The department has considered those matters and issued Briefing Note 14 amending the RFP and extending the bid submission date from October 31 2025 to May 29 2026.
The matters that have been considered in amending the RFP include but are not limited to:
1. The project-on-project risk that arises as a consequence of results from the requirement for any bidders wishing to submit bid responses for facilities located within the borders of the City of uMhlathuze, for participation in this GIPPPP, wherein the RFP requires them to secure their fuel through the natural gas storage and regasification terminal procured by Transnet National Ports Authority natural gas terminal.
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;
2. Legal functionality criteria insofar as it pertains to the requirement for Environmental Authorisations (EA);
3. The load factor range, under the GIPPPP, insofar as it relates to the Minimum Load Commitment and Maximum Load Commitment as contemplated in the Power Purchase Agreement;
4. The introduction of a Revised Minimum Load Commitment option as contemplated in the Power Purchase Agreement;
5. The performance requirement for the frequency of the ramp ups and downs; and
6. The gas pricing mechanism.
The amended GIPPPP BW 1 RFP is available for download on the programme’s official website, for all those who have registered.
The GIPPPP BW 1 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. Additional information on the requirements for registration is available on the programme’s official website. Queries can also be addressed to query@ipp-gas.co.za.
Stakeholders and prospective bidders are encouraged to take note of the revised critical dates on the RFP that refer to the bid submission date of May 29 2026:
- The last date for bidders to submit written questions is on March 30 2026, which is 40 business days before the bid submission date; and
- The last date for compulsory bid registration, including payment of the bid submission registration fee, is April 15 2026, which is 30 business days before the bid submission date.
In addition, the department will host a non-compulsory information sharing engagement with the public to provide key updates on the RFP for GIPPPP BW 1. This engagement will be conducted virtually, with the date and further details to be announced on the programme’s official website.
This article was sponsored by the department of electricity & energy.
