Saudi’s ACWA Power in PPA with South Africa for Dispatchable RE Project of 150 MW

Saudi's ACWA Power in PPA with South Africa for Dispatchable RE Project of 150 MW

Saudi-based clean energy firm ACWA Power, has entered into a Power Purchase Agreement (PPA) for a project known as, ‘ACWA Power Project DAO’ to be established in South Africa. The initiative is for a dispatchable renewable hybrid plant of 150 MW capacity.

The signatories of the agreements included Gwede Mantashe, Minister of Mineral Resources and Energy and Segomoco Scheppers from Eskom.

The project will come up in Northern Cape Province in South Africa. It will be the largest solar PV installation with 442 MW capacity, supplemented by battery storage of close to 1,200 MWh- among the world’s largest BESS. Currently under construction, project operations are said to commence in the second quarter of 2026.

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The project value is pegged at around USD 800 million, and is among South Africa’s most prominent hybrid investments in renewable energy.

The project will shall be linked to the national grid will play an important role in giving a push to South Africa’s domestic sector and contribute majorly to its socio-economic development. The project looks to reach about 50% local content in procurement during construction, while creating more 1,000 construction jobs at its peak. The local community will be tapped for these opportunities.

South Africa has set sights on ramping up renewable energy capacities. The Department of Mineral Resources and Energy (DMRE) of South Africa recently released a tender under the seventh bid window (BW7) under its Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The tender seeks bids for the development of 5 GW of renewable capacity, entailing 3.2 GW of wind and 1.8 GW of solar capacity.