A consortium led by ACWA Power has achieved the Project Commercial Operation Date (PCOD) for the integrated utility system supporting The Red Sea destination in Saudi Arabia. The milestone was marked by the signing of a certificate between Marafiq Red Sea for Energy Company and The Red Sea Utilities Company, a subsidiary of Red Sea Global.
The project company, Marafiq Red Sea for Energy Company, was established by ACWA Power in partnership with SPIC Huanghe Hydropower and Saudi Tabreed. With the achievement of PCOD, the project has entered a 25-year concession period during which the consortium will develop, operate, and maintain the integrated utility infrastructure.
The project is notable as the first Saudi giga-project to operate a complete multi-utility system entirely on renewable energy without being connected to the national electricity grid. The system is designed to support sustainable tourism by providing clean electricity, potable water, wastewater treatment, district cooling, and waste management.
The energy infrastructure includes a 340 MWac solar photovoltaic plant combined with a 1,227 MWh battery energy storage system. The battery facility is recognized as the world’s largest off-grid battery energy storage system. It enables continuous power supply throughout the day and night and currently supports hotels, Red Sea International Airport, logistics facilities, electric vehicle fleets, and community infrastructure.
When fully operational, the renewable energy system is expected to produce up to 760,000 MWh of clean electricity annually. This could help avoid around 600,000 tonnes of carbon dioxide emissions every year.
The wider utility system also includes three seawater reverse osmosis desalination plants and a sewage treatment facility capable of processing 16,000 cubic metres of wastewater per day. Treated wastewater is reused for irrigation and supports the development of wetland habitats. A resource recovery-focused waste management facility and a district cooling network with a total capacity of 32,500 refrigeration tons are also part of the infrastructure.
The project represents an investment of approximately $1.84 billion, supported by around $1.33 billion in senior debt facilities. Its financing and development support Saudi Arabia’s Vision 2030 objectives for sustainable infrastructure and tourism.
Construction was carried out by EPC contractor SEPCO III, with more than 30 million safe working hours completed without a lost-time injury. Environmental monitoring measures have also been implemented to protect marine and terrestrial ecosystems.
During the 25-year concession, the project is expected to support local Saudi suppliers, engineering capabilities, workforce development, and employment while providing reliable renewable-powered utilities for The Red Sea destination.
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