ACWA power signs PPA for South African dispatchable renewable energy project
Published by Theodore Reed-Martin,
Editorial Assistant
Energy Global,
Saudi-listed ACWA Power, lead shareholder and developer in the ‘ACWA Power Project DAO’, a 150 MW dispatchable renewable hybrid plant, signed the project Power Purchase Agreement. The Minister of Mineral Resources and Energy, Gwede Mantashe, signed the Implementation Agreement and Segomoco Scheppers from Eskom signed the Power Purchase Agreement 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.
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 1200 MWh of battery storage which will be one of the largest in the world. Commencement of operations is scheduled by 2Q26, adding significant dispatchable capacity onto 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.
“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,” said Marco Arcelli, CEO of ACWA Power.
Project DAO, with a total cost of c. USD 800 M, 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.
The project will not only deliver efficient clean energy to the national grid but will also reinforce the socio-economic framework in South Africa by offering job opportunities and utilising local supply chains. The project will 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.
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Read the article online at: https://www.energyglobal.com/other-renewables/19122023/acwa-power-signs-ppa-for-south-african-dispatchable-renewable-energy-project/?yptr=yahoo
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