ACWA Power signs PPA for largest hybrid renewable project in South Africa

ACWA Power, a Saudi-listed private water desalination company, is now the lead shareholder and developer in the ACWA Power Project DAO, a 150MW dispatchable renewable hybrid power plant.

Located in the Northern Cape Province of South Africa, the plant will be equipped with the largest solar PV installation in the country of 442MW, with about 1,200MWh of battery storage, which will be one of the largest in the world.

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 Northern Cape grid congestion.

Commenting on the project announcement in a release was Marco Arcelli, chief executive officer of ACWA Power:

“ACWA Power is firmly committed to leading the energy transition in high-growth markets, and we are proud to meaningfully contribute to the socio-economic development of South Africa through our mission to deliver power, desalinated water, and green hydrogen reliably and responsibly at an affordable cost.

“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.”

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Project DAO, with a total cost of $800 million, 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 Pty Ltd., and Aventro Investments Pty Ltd., all of whom have been involved in significant renewable energy projects.

The project will also reinforce the socio-economic framework in South Africa by offering job opportunities and utilising local supply chains. The project will reach around 50% local content in procurement during the construction period and create more than 1,000 construction jobs at peak - with about 25% from the local community.

Project DAO was declared one of the preferred bidders in the Risk Mitigation IPP Procurement Program in 2021 with the lowest tariff. Commencement of operations is scheduled by Q2 2026, adding significant dispatchable capacity to the country’s power grid.