Saudi’s ACWA Power has entered into a power purchase agreement to support South Africa’s largest hybrid renewable power project, enhancing its portfolio of green energy initiatives. The project, known as Project DAO, is currently under construction and has a total cost of approximately $800 million. In addition, the investor consortium for the project includes ACWA Power as the leading developer, along with Thebe Investment Corporation and Aventro Investments.
Largest solar photovoltaic installation in South Africa
Situated in the Northern Cape province, the facility will feature the largest solar photovoltaic installation in South Africa, capable of generating 442 megawatts of power, according to ACWA Power’s statement. Additionally, the plant will have a significant battery storage capacity of 1,200 megawatt hours, making it one of the largest in the world.
Operations are scheduled to commence in the second quarter of 2026. During the peak construction phase, the project is expected to create over 1,000 jobs, with 25 percent of these opportunities being allocated to the local community.
ACWA Power, backed by the Public Investment Fund (PIF), operates in 12 countries across the Middle East, Africa, Central Asia, and Southeast Asia. Moreover, the company‘s extensive portfolio comprises 77 projects in various stages of operation, advanced development, and construction, with a total investment value of $82.8 billion. Collectively, these projects have the capacity to generate 53.69 gigawatts of power and manage 7.6 million cubic meters of desalinated water per day.
Read more: ACWA Power signs $3.9 billion power purchase contracts
Notable agreements
In October, ACWA Power secured agreements valued at $746 million for the development of clean energy projects. These agreements included a $500 million initial deal with EIG, an energy-focused institutional investor, to collaborate on power generation, water desalination, and green hydrogen projects, with a specific focus on investments in Gulf countries and Uzbekistan. Additionally, ACWA Power signed funding agreements worth $246 million with the European Bank for Reconstruction and Development and the OPEC Fund for International Development for the development of a 240-megawatt wind power project in Azerbaijan.
Strong financial performance
In its most recent financial report, ACWA Power disclosed a net profit increase of over 16 percent for the third quarter, attributed to higher revenue from newly operational projects. In addition, the company’s net profit after zakat for the three-month period ending in September reached 397.94 million Saudi riyals ($106.08 million), as reported in a filing to the Tadawul stock exchange, where ACWA Power’s shares are traded. Revenue during the same period experienced a growth of over 22 percent year-on-year, reaching 1.54 billion riyals, while operating profit rose by nearly 25 percent to 814.2 million riyals.
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