ACWA Power signs PPA 150MW dispatchable renewable hybrid plant in South Africa

  • ACWA Power has signed a PPA for the DAO 150MW dispatchable renewable hybrid plant in South Africa.
  • Project DAO was declared as one of the preferred bidders in the Risk Mitigation IPP Procurement Program in 2021 with the lowest tariff.

Located in the Northern Cape Province of South Africa, the plant will be equipped with the largest solar PV installation in the country of 442 MW, with about 1,200 MWh of battery storage which will be one of the largest in the world. Commencement of operations is scheduled by Q2 2026, adding significant dispatchable capacity onto the grid.

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 the Northern Cape grid congestion.

With a total cost of c. USD 800 M the projetc 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 not only deliver efficient clean energy to the national grid but will also reinforce the socio-economic framework in South Africa by offering job opportunities and utilizing 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.

Author: Bryan Groenendaal

 

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