Saudi-listed ACWA Power has signed the power purchase agreement for South Africa’s largest hybrid dispatchable renewable energy project.
South Africa’s Minister of Mineral Resources and Energy, the Honourable Gwede Mantashe, signed the Implementation Agreement and Mr. Segomoco Scheppers from Eskom signed the Power Purchase Agreement with ACWA Power Project DAO signatory Mr. Ashley Singh.
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.
The commencement of operations is scheduled for the second quarter of 2026, adding significant dispatchable capacity to 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.
Project DAO, with a total cost of $800 million, 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, as per the statement.