ACWA Power inks deal for largest hybrid renewable energy project in South Africa

Saudi Arabia's ACWA Power has inked a deal for the largest hybrid dispatchable renewable energy project in South Africa.

The company has already signed a power purchase agreement for the project which is expected to boost its green energy portfolio. The project is located in Northern Cape province, while operation is likely to commence by the second quarter of 2026.

Issuing a statement, the company shared that the project DAO is currently under construction. The project with a total cost of nearly $800 million has Acwa Power as the lead developer and Thebe Investment Corporation and Aventro Investments.

“It will be one of the largest hybrid investments in the South African renewable energy sector. The plant will be equipped with the “largest solar photovoltaic installation in the country of 442 megawatts”, the statement said.

This plant is expected to generate 1,200 megawatt hours of battery storage, which is possibly one of the largest in the world.

Marco Arcelli, chief executive of Acwa Power, was quoted in a statement, “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.”

Acwa Power informed that the company has operations in 12 countries across the Middle East, Africa, Central Asia and South-East Asia. So far, the company has a portfolio of projects with the capacity to generate 53.69 gigawatts of power.