Saudi-listed ACWA Power has signed a PPA for a 442MW solar farm in the Northern Cape Province of South Africa.
The Project DAO plant, which also has about 1200MWh of battery storage, which will be one of the largest in the world, ACWA said.
Project DAO was declared as one of the preferred bidders in the Risk Mitigation IPP Procurement Program in 2021 with the lowest tariff, it added.
Commencement of operations is scheduled by Q2 2026.
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.
Marco Arcelli, chief executive officer of ACWA Power, said: “ACWA Power is firmly committed to leading the energy transition in high-growth markets, and we are proud to meaningfully contribute to the socio-economic development of South Africa through our mission to deliver power, desalinated water, and green hydrogen reliably and responsibly at an affordable cost.
“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.”
Project DAO, with a total cost of US$800m, will be one of the largest hybrid investments in the South African renewable energy sector, currently in construction, ACWA said.
The project’s investor consortium includes ACWA Power as the lead developer, Thebe Investment Corporation Pty, and Aventro Investments Pty, all of whom have been involved in significant renewable energy projects.
The project aims to 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.