ACWA Power Consortium Begins Operations at Red Sea Utilities Project
Saudi-listed ACWA Power, in partnership with SPIC Huanghe Hydropower and Saudi Tabreed, has announced the commencement of operations for the integrated utilities system at The Red Sea destination. This marks a major milestone for Saudi Arabia’s flagship regenerative tourism development. The commercial operation certificate was signed by Marafiq Red Sea for Energy Company, the project company formed by the consortium, and The Red Sea Utilities Company, a subsidiary of Red Sea Global.
The project, with a total investment of approximately US$1.84 billion, is one of the world’s largest integrated off-grid utilities systems powered entirely by renewable energy. It operates independently from the national electricity grid and includes renewable power generation, battery storage, desalination, wastewater treatment, district cooling, and waste management within a single platform.
Under a 25-year concession, the consortium is responsible for developing, operating, and maintaining the utilities infrastructure. A key component is a 340MWac solar photovoltaic plant integrated with a 1,227MWh battery energy storage system, designed to provide renewable electricity around the clock. The system can produce up to 760,000MWh of clean electricity annually, avoiding an estimated 600,000 tonnes of carbon dioxide emissions each year.
The project scope includes three seawater reverse osmosis desalination plants, a sewage treatment plant, and a waste management centre. The wastewater treatment system can handle approximately 16,000 cubic metres of wastewater per day, supporting irrigation and creating new wetland habitats. Additionally, the project includes 32,500 refrigeration tons of district cooling capacity for hotels and the airport.
The utilities system was engineered and constructed by SEPCO III, with ACWA Operations responsible for operation and maintenance under the long-term agreement. Financial close was achieved in February 2022, with US$1.33 billion in senior debt facilities arranged through Saudi and international banks. The project aligns with Saudi Vision 2030, aiming to accelerate renewable energy deployment and develop sustainable tourism and infrastructure.