Saudi-listed ACWA Power has inked a Power Purchase Agreement (PPA) for a 442MW solar farm with approximately 1200MWh of battery storage in South Africa's Northern Cape Province. The Project DAO plant, touted to be one of the world's largest, was declared a preferred bidder in the Risk Mitigation IPP Procurement Program in 2021, securing the lowest tariff.
Scheduled to commence operations by the second quarter of 2026, Project DAO encompasses a substantial transmission integration scope, including upgrades to transmission substation capacity and the establishment of a new distribution station. This infrastructure will enable grid access for other renewable projects in the region, helping alleviate congestion in the Northern Cape grid.
ACWA Power's CEO, Marco Arcelli, expressed the company's commitment to leading the energy transition in high-growth markets and contributing to South Africa's socio-economic development. Project DAO follows the success of ACWA Power's Bokpoort and Redstone CSP projects in delivering clean energy and socio-economic benefits to local communities.
With a total cost of $800 million, Project DAO is positioned as one of the largest hybrid investments in South Africa's renewable energy sector. The project, currently under construction, is backed by an investor consortium featuring ACWA Power as the lead developer, along with Thebe Investment Corporation Pty and Aventro Investments Pty, all with significant involvement in renewable energy initiatives.
See also: ACWA Power secures $123m financing for Egypt solar project
The project aims to achieve approximately 50% local content in procurement during the construction phase and anticipates creating over 1000 construction jobs at peak capacity, with about 25% sourced from the local community. The PPA marks a significant milestone in ACWA Power's commitment to delivering reliable, affordable, and responsibly sourced power, desalinated water, and green hydrogen in alignment with the global energy transition.
