It is worth noting that Saudi-listed ACWA Power has gone on to sign a Purchase Power Agreement- PPA for a 442 MW solar farm in the Northern Cape Province, South Africa.
ACWA added that the Project DAO plant, which has around 1200 MWh of battery storage, is going to be one of the largest in the world.
It is well to be noted that Project DAO was considered one of the preferred bidders when it came to the risk mitigation IPP procurement program in 2021, having the lowest tariff.
In all likelihood, the commencement of operations is going to take place by the second quarter of 2026.
Apparently, Project DAO also has in it a significant transmission integration scope that includes both transmission substation capacity upgrades as well as a new distribution station, which will go on to facilitate access to the grid for other renewable projects across the area and will thereby help cut the congestion at the Northern Cape.
The chief executive officer of ACWA Power, Marco Arcelli, added that ACWA Power is committed firmly to leading the energy shift in high-growth markets, and they are indeed proud to contribute meaningfully to the socio-economic development of South Africa by way of the mission to deliver power, desalinated water, and green hydrogen reliably, along with ownership at an affordable cost.
Project DAO is most likely going to be yet another ACWA Power flagship project in South Africa, following the success of the Redstone CSP and Bokpoort projects, when it comes to offering clean energy to the country along with prominent socio-economic value to its neighboring communities.”
The fact is that Project DAO, with a total cost of US$800 million, will be one of the largest hybrid investments made in the South African renewable energy sector, which is at present under construction, the ACWA said.
Significantly, the project’s investor consortium has in it ACWA Power as the lead developer, Thebe Investment Corporation Pty, as well as Aventro Investments Pty, all of which happen to have been involved in major renewable energy projects.
The project looks to reach almost 50% local content when it comes to procurement throughout the construction period and also create over 1000 construction jobs at peak, with around 25% from the local community.