Saudi-listed Acwa has reached the Project Commercial Operation Date (PCOD) for the utility systems serving The Red Sea destination, marking the first time a giga-project in Saudi Arabia has brought its entire utility infrastructure into commercial operation using only renewable energy and without support from the national grid.

The certificate was signed by Marafiq Red Sea for Energy Company, formed by Acwa, SPIC Huanghe Hydropower and Saudi Tabreed, and The Red Sea Utilities Company, a subsidiary of Red Sea Global.

The consortium provides renewable power, potable water, wastewater treatment, district cooling and waste management under a 25-year concession.

The project received financial close in February 2022, with approximately $1.33 billion in senior debt facilities and total investment of around $1.84 billion.

Power is generated by a 340 MWac solar photovoltaic plant paired with a 1,227 MWh battery energy storage system, described as the world’s largest off-grid battery installation.

The system can supply the destination overnight and generate up to 760,000 MWh of clean electricity annually, avoiding about 600,000 tonnes of carbon dioxide emissions each year.

The project also includes three seawater reverse osmosis plants, a waste management centre and a sewage treatment plant capable of treating 16,000 cubic metres of wastewater per day.

District cooling capacity of 32,500 refrigeration tons serves hotels and the airport.

Environmental protection was a key requirement throughout development, with utility services undergoing Environmental and Social Impact Assessments and receiving permits from Saudi Arabia’s National Center for Environmental Compliance.

Continuous environmental monitoring will continue during operations.

The construction phase achieved 30 million safe working hours without a lost-time injury, highlighting the safety performance of the large-scale project in a remote coastal environment.

Local content has also been integrated into construction and operations, with Saudi suppliers providing equipment, materials and services where specifications allowed. Saudi engineers and technicians have worked across the solar, storage, desalination and cooling facilities, while the long-term operation and maintenance workforce will continue to be developed within the Kingdom.

Mohammad Abunayyan, Founder and Chairman of Acwa, said: “The Red Sea project embodies the ambition of Saudi Vision 2030 and the vision of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, to deliver pioneering projects that redefine modern infrastructure and reinforce the Kingdom’s position as a global leader. As the world’s largest integrated off-grid utilities system, and the first of its kind at this scale, the project sets a new global benchmark for sustainable development.

He added: “By bringing renewable energy, water, and environmental services together within one integrated platform, the project demonstrates that infrastructure at this scale can enable economic growth while protecting natural resources and the environment for future generations. It also provides a world-leading model for delivering utilities as one cohesive system, enhancing efficiency, resilience, and long-term reliability.”

Abunayyan concluded: “This achievement demonstrates the power of public-private partnership to translate the Kingdom’s ambitions into reality by combining clear vision with private-sector expertise, innovation and execution capabilities. Our 25-year concession reflects the long-term nature of this partnership, with Acwa and its partners developing, operating and maintaining the utilities that will serve the destination for the life of the concession. At Acwa, we are proud to have contributed capabilities developed in Saudi Arabia to a project that demonstrates what the Kingdom can achieve and provides a model with relevance for future developments at home and around the world.”

John Pagano, Group CEO at Red Sea Global, said: “This milestone brings our vision for a new model of regenerative tourism to life at full scale. By operating without a connection to the national grid and powering the destination entirely through renewable energy, we are demonstrating how sustainable infrastructure can support tourism that gives back to the natural environment and communities on which it depends.”

The project supports Saudi Vision 2030 by combining private-sector investment, renewable energy and sustainable infrastructure.

Its integrated design brings power, water, cooling, waste management and environmental protection under a single concession, supporting the long-term development of The Red Sea destination while maintaining its environmental objectives. -OGN/TradeArabia News Service