ACWA bags big utilities deal for renewables-powered Red Sea Project

Saudi Arabia’s ACWA Power is leading a consortium that will deliver all of the utilities for The Red Sea Project -- a regenerative tourism destination to be powered by 100% renewable energy.

The contract includes the provision of renewable electricity, potable water through reverse osmosis, wastewater treatment, solid waste management and district cooling for the project’s first phase -- 16 hotels, an international airport and infrastructure. The ACWA-led consortium will install wind and solar capacity to meet an initial demand of 210 MW, with an option to expand that in the future. The Red Sea Project will also use a giant 1,000-MWh battery storage facility to enable 24-hour renewables supply.

The Red Sea Development Company (TRSDC) announced the contract award on Monday, explaining that it will not invest own capital but rather purchase its utilities from the consortium for the next 25 years. The contract was procured as an independent public-private partnership (PPP), covering the design, construction and operation of the systems providing utilities.

Financing for the ACWA consortium will come from Saudi and international banks, including Standard Chartered and China’s Silk Road Fund.

The Red Sea Project expects to welcome its first guests by end-2022, when the international airport and the first four hotels are planned to open. The other 12 hotels under Phase One will open in 2023. The whole project is to be completed in 2030, with a total of 50 hotels.

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