ACWA Power, the lead shareholder and developer of the ACWA Power Project DAO, a 150 MW dispatchable renewable hybrid plant, has signed the project’s Power Purchase Agreement with the ministry of Mineral Resources and Energy, and Eskom. Project DAO was declared as one of the preferred bidders in South Africa’s Risk Mitigation IPP Procurement Programme in 2021.
Located in the Northern Cape Province, the plant will be equipped with the largest solar PV installation in the country at 442 MW, and approximately 1200 MWh of battery storage, making it one of the largest in the world. Commencement of operations is scheduled for Q2 2026, adding significant dispatchable capacity onto the grid. Project DAO also includes scope for significant transmission integration, which includes 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.
The project, at a total cost of USD 800 m, 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, and Aventro Investments Pty, all of which have been involved in significant renewable energy projects.
The project is intended to deliver efficient clean energy to the national grid and will reinforce the socio-economic framework in South Africa by offering job opportunities and utilising local supply chains. It will reach around 50% local content in procurement during the construction period, and create more than 1000 construction jobs at peak – with about 25% from the local community.
Marco Arcelli, CEO, ACWA Power, commented: “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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