The Red Sea Development Company (TRSDC) has granted its most valuable contract to date to a consortium led by ACWA Power for the complete provision of renewable energy to the Saudi Arabian luxury tourism project known as the Red Sea Project. The project's utilities infrastructure will be designed, constructed, operated, and transferred by the consortium.
The Red Sea Project, which consists of more than 90 islands, will 100% rely on solar panels and wind turbines to generate clean energy, initially meeting a demand of 210 MW. The energy supply will be completely off-grid, thanks to a public-private partnership (PPP) agreement that also includes the development of a 1 GWh battery storage capacity.
As part of Phase I of the project, the Red Sea Project will establish an international airport and four hotels out of the total 50 hotels planned by the end of 2022. The remaining 12 hotels are scheduled for completion in Phase I and will open in 2023. The entire project, spanning 22 islands and six inland sites, with up to 8,000 hotel rooms and 1,300 residential properties, is slated for completion by 2030.
Under the PPP agreement with the ACWA Power-led consortium, the design, construction, and operation of various systems will be covered, including potable water, district cooling, wastewater treatment, solid waste management, and renewable energy. Additionally, the Red Sea Project will house the world's largest battery storage facility, with a capacity of 1 GWh, ensuring uninterrupted renewable energy supply day and night. This achievement sets a remarkable precedent for a project of this magnitude.
According to TRSDC CEO John Pagano, "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. This approach necessitates the establishment of entirely new utilities infrastructure, making the PPP contract a sensible choice as it ensures the provision of high-quality, affordable utilities for us and a favorable return on investment for our backers."
The Red Sea Project, a visionary endeavor spearheaded by Crown Prince Mohammed bin Salman, will become a luxury tourism destination entirely powered by 100% renewable energy. Through the utilization of solar panels, wind turbines, and a cutting-edge battery storage facility, the project aims to set new standards in sustainable development and environmentally friendly practices.
