South Africa - 01

South Africa: Gas-to-Power Procurement: Challenges and Lessons

On 29 March the IPSA Group, a small IPP focused on South Africa, confirmed its exit from the country, citing bureaucratic and political issues. IPSA operated the country’s first gas-fired IPP, Newcastle Cogeneration (NewCogen). The exit comes shortly before the Department of Energy’s IPP office is slate to issue an RFP for the gas-to-power program in late April or May. As a result, the news surrounding NewCogen will raise questions for investors interested in the gas-to-power IPP program.

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