Acwa Power backs $800m energy project in South Africa

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Acwa Power, Saudi Arabia’s operator of power generation and desalinated water production plants, has signed a purchase agreement for a 150 megawatt (MW) renewable energy project in South Africa.

The $800 million Project Dao, one of the largest hybrid investments in the South African renewable energy sector, is currently under construction, Acwa Power said in a statement.

The plant, located in the Northern Cape province of South Africa, will be equipped with the largest solar photovoltaic (PV) installation in the country, of 442 MW, with about 1,200 MWh of battery storage. 

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Operations are scheduled to start by Q2 2026. 

Project Dao will include transmission substation capacity upgrades and a new distribution station, facilitating access to the grid for other renewable projects in the area and helping alleviate the Northern Cape’s grid congestion.

The project’s investor consortium includes Acwa Power as the lead developer, along with Thebe Investment Corporation and Aventro Investments, two South African investment companies.

The project will reach around 50 percent local content in procurement during the construction period and create more than 1,000 construction jobs at its peak, with about 25 percent from the local community.