The Um Rumah Island is one among over 90 islands as part of the Red Sea Project that will be powered by 100% renewable energy as the TRSDC has promised to deliver, contracting an ACWA Power led consortium to deliver the utilities infrastructure. (Photo Credit: The Red Sea Development Company)
- TRSDC has awarded its highest value contract to an ACWA Power led consortium for the Red Sea Project to be completely powered by 100% renewable energy
- Solar panels and wind turbines will supply clean energy for the luxury tourism destination meeting an initial demand of 210 MW
- The project will be completely off-grid since the PPP agreement signed will also ensure development of 1 GWh battery storage capacity
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The Saudi Arabian luxury tourism development plan called Red Sea Project will be 100% renewable energy powered after the Red Sea Development Company (TRSDC) awarded its highest-value contract to date to a consortium led by ACWA Power to design, build, operate and transfer the project’s utilities infrastructure.
Comprising an archipelago of over 90 islands, the Red Sea Project will source its electricity through solar panels and wind turbines to meet an initial demand of 210 MW with plans to expand the same in line with development of the project. TRSDC said the project is not investing any capital of its own and will purchase its utilities from the consortium for the next 25 years.
This 210 MW renewable energy capacity will be supplied to the destination and other utility systems. “All of the utilities will be delivered under a single agreement, unique for a contract of this kind, which includes the provision of renewable power, potable water, wastewater treatment, solid waste management and district cooling for the 16 hotels, international airport and infrastructure that make up phase one of The Red Sea Project,” stated TRSDC.
Under phase I of the project, it will start international airport and 4 hotels out of 50 hotels planned by the end of 2022. Remaining 12 hotels scheduled for completion in phase I will open in 2023. Entire project is scheduled for completion in 2030 with up to 8,000 hotel rooms and 1,300 residential properties across 22 islands and 6 inland sites.
The independent public private partnership (PPP) agreement with ACWA Power led consortium will cover the design, construction and operation of the systems including potable water, district cooling, wastewater treatment and solid waste management apart from renewable energy.
The 28,000 km² Red Sea Project, a pet project of Crown Prince Mohammed bin Salman, will also house what the hosts term as the world’s ‘largest’ battery storage facility with 1 GWh capacity to ensure the project is completely off-grid and powered by renewables day and night.
“With the largest battery storage facility in the world in place, we can guarantee that the development is 100 percent powered by renewable energy 24 hours a day, 365 days a year, an accomplishment which has never been achieved on a project of this scale before,” said TRSDC CEO John Pagano. “This approach requires entirely new utilities infrastructure, and so a PPP contract makes sense as it ensures high quality, affordable utilities for us and a sound return on the investment for our backers.”