ACWA Power, a Saudi listed company, signed a power purchase agreement with the developer of the 150MW dispatchable renewable energy hybrid power station "ACWA Power Project DAO".
The Implementation Agreement was signed by H.E. Gwede Mantashe, Minister of Mineral Resources and Energy, and Mr. Segomoco Scheppers of ESKOM signed the PPA with Mr. Ashley Singh, DAO signatory of the ACWA Power Project. Project DAO was announced as one of the lowest tariff priority bidders in the 2021 Risk Mitigation IPP Procurement Program.
Located in South Africa's Northern Cape province, the plant will be equipped with the country's largest solar PV unit with a capacity of 442 MW and a battery storage capacity of around 1,200 MWh, making it one of the largest battery storage units in the world. Operations are expected to begin in the second quarter of 2026, adding significant dispatchable capacity to the grid.
Project DAO also includes a significant scope for transmission integration, which includes transmission substation capacity upgrades and a new distribution station, which will work together to facilitate the integration of other renewable energy projects in the region into the grid and help alleviate grid congestion in the Northern Cape.
"Acwa Power is strongly committed to leading the energy transition in high-growth markets, and we are proud to make a meaningful contribution to South Africa's socio-economic development through our mission to reliably and responsibly deliver electricity, desalinated water, and green hydrogen at an affordable cost," said Marco Arcelelli, CEO of ACWA Power. Following the success of the Bokpoort and Redstone CSP projects, the DAO project will be another flagship project for ACWA Power in South Africa, providing clean energy to the country and significant socio-economic value to its surrounding communities.
The total cost of the Project DAO is C. The $800 million will be one of the largest blended investments in South Africa's renewable energy sector, which is currently under construction. The consortium of investors in the project includes ACWA Power, Thebe Investment Corporation Pty Ltd. as the main developerand **Entro Investments Pty Ltd, all of which are involved in important renewable energy projects.
The project will not only provide efficient and clean energy to the national grid, but will also strengthen South Africa's socio-economic framework by providing employment opportunities and leveraging local ** chains.
Procurement during the construction of the project will reach about 50% local content, and at its peak will create more than 1,000 construction jobs, of which about 25% will come from the local community.
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