Dubai, UAE — Saudi-listed renewable energy giant ACWA Power has signed a $800 million power purchase agreement for ACWA Power Project DAO, South Africa’s largest (150MW) hybrid dispatchable renewable energy project.
South Africa’s Minister of Mineral Resources and Energy, Gwede Mantashe, signed the Implementation Agreement and Segomoco Scheppers from Eskom signed the Power Purchase Agreement with ACWA Power Project DAO signatory Ashley Singh.
Project DAO was declared as one of the preferred bidders in the Risk Mitigation IPP Procurement Program in 2021 with the lowest tariff.
The project will not only deliver efficient clean energy to the national grid but will also reinforce the socio-economic framework in South Africa by offering job opportunities and utilizing local supply chains. The project will reach around 50 percent local content in procurement during the construction and create more than 1,000 construction jobs at peak – with about 25 percent from the local community.
Located in the Northern Cape Province of South Africa, the plant will be equipped with the largest solar PV installation in the country of 442 MW, with about 1,200 MWh of battery storage which will be one of the largest in the world.
Commencement of operations is scheduled by Q2 2026, adding significant dispatchable capacity onto the grid.
Project DAO also includes a significant transmission integration scope which includes both Transmission Substation capacity upgrades and a new distribution station, which will together facilitate access to the grid for other renewable projects in the area and help alleviate the Northern Cape grid congestion.
Marco Arcelli, CEO of ACWA Power, “Project DAO is set to be yet another ACWA Power flagship project in South Africa, following the success of the Bokpoort and Redstone CSP projects, in offering clean energy to the country and significant socio-economic value to its surrounding communities.”
Project DAO will be one of the largest hybrid investments in the South African renewable energy sector, currently in construction. The project’s investor consortium includes ACWA Power as the lead developer, Thebe Investment Corporation and Aventro Investments, all of whom have been involved in significant renewable energy projects.