Chinese engineering company SEPCOIII has achieved full commercial operation of the Saudi Red Sea Utility Infrastructure Project, marking a major milestone in the development of renewable-powered tourism infrastructure. The project has been delivered under an Engineering, Procurement, and Construction (EPC) contract and is designed to provide integrated energy and utility services to the Red Sea resort region.
Located on Saudi Arabia’s western coast, the development operates completely off-grid and is powered entirely by renewable energy. The project supports Saudi Arabia’s Vision 2030, which seeks to diversify the national economy, strengthen sustainable infrastructure, and reduce dependence on conventional energy sources.
SEPCOIII was responsible for developing a wide range of interconnected utility facilities. These include solar photovoltaic power plants, a large-scale battery energy storage system, regional electricity networks, seawater desalination facilities, and potable water distribution pipelines. The company also developed sewage networks, wastewater treatment facilities, solid-waste processing infrastructure, telecommunications systems, and district cooling networks.
The integrated design allows electricity generation, energy storage, water production, and waste management systems to operate together. This approach is intended to improve resource efficiency while ensuring reliable utility services for the rapidly developing tourism destination.
A key feature of the project is its battery energy storage system, which has a capacity of more than 1,300 MWh. The facility was recognized by Guinness World Records in 2025 as the world’s largest off-grid energy storage project at the time, highlighting the scale of the renewable energy infrastructure supporting the development.
The project has also received international recognition for its engineering and sustainability features. Its achievements include the 2022 MUSE Design Gold Award and awards for Renewable Energy Innovation of the Year and Sustainable Construction Project of the Year in 2026.
With commercial operations now underway, the infrastructure is supplying renewable electricity, desalinated water, and other essential services to luxury hotels and tourism facilities across the Red Sea development.
The project is also expected to deliver broader economic benefits for Saudi Arabia. It is projected to create around 70,000 jobs and contribute approximately SAR 22 billion to the country’s GDP. Its completion demonstrates how large-scale renewable energy, storage, water, and utility systems can be combined to support sustainable tourism development in remote locations.
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