Acwa Power, the world’s largest private water desalination company and a leader in energy transition and first mover into green hydrogen, has signed a power purchase agreement for a 150MW dispatchable renewable hybrid plant, in South Africa.

 

Acwa Power is a lead shareholder and developer in the Project DAO being set up at a total cost of $800 million. The project’s investor consortium includes Thebe Investment Corporation and Aventro Investments, all of whom have been involved in significant renewable energy projects.

 

The agreement was signed by Minister of Mineral Resources and Energy Gwede Mantashe and Segomoco Scheppers from Eskom along with Acwa Power Project DAO signatory Ashley Singh. 

 

Project DAO was declared as one of the preferred bidders in the Risk Mitigation IPP Procurement Program in 2021 with the lowest tariff.

 

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 plant operations are likely to begin in Q2 2026, adding significant dispatchable capacity onto the grid. 

 

On the new project, Acwa Power CEO Marco Arcelli 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," he added.-TradeArabia News Service