ACWA Power seals PPA for $800 M project in South Africa
ACWA Power has announced that it signed Power Purchase Agreement (PPA) for its ACWA Power Project DAO dispatchable renewable hybrid plant in South Africa.
Image for illustration purposes.
Saudi Arabia/South Africa: ACWA Power has announced that it signed Power Purchase Agreement (PPA) for its ACWA Power Project DAO dispatchable renewable hybrid plant in South Africa.
The project will be located in the Northern Cape Province. The Independent Power Producer (IPP) project, the largest of its kind in South Africa, has a contracted capacity of 150 MW, according to a press release from ACWA Power. ACWA Power is the lead shareholder and developer of Project DAO, which was declared as one of the preferred bidders in the Risk Mitigation IPP Procurement Programme in 2021.
The ACWA-Power led consortium, which included Thebe Investment Corporation and Aventro Investments, bid a tariff of 1.46 rands/kWhr (0.08 USD/kWhr), according to the official website of Independent Power Producer Procurement Programme, which is being managed by Department of Mineral Resources and Energy.
The $800 million IPP project comprises a 442 MW solar photovoltaic (PV) power plant with about 1,200 MWh of battery storage. The project scope also includes transmission substation capacity upgrades and a new distribution station. Beginning of operations is scheduled by the second quarter of 2026.
Source: Zawya
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