ACWA-led consortium reaches commercial operation on world’s largest off-grid renewable utility system in Saudi Arabia
ACWA Power and partners reached commercial operation on a 340 MWac solar and 1,227 MWh battery system powering Red Sea Global off-grid.
Photo by Deane Bayas on Pexels
An ACWA Power-led consortium reached commercial operation on what it describes as the world’s largest off-grid renewable utility system, at the Red Sea Global destination on Saudi Arabia’s west coast, the companies announced September 6, 2026. The system pairs 340 MWac of solar photovoltaic capacity with a 1,227 MWh battery storage facility, which the developers say is the largest off-grid battery installation built anywhere.
The Project Commercial Operation Date certificate was signed by Marafiq Red Sea for Energy Company (“Marafiq”), the project company formed by ACWA Power with SPIC Huanghe Hydropower and Saudi Tabreed, and by The Red Sea Utilities Company, a subsidiary of Red Sea Global. The signing starts a 25-year concession covering power, water, wastewater, district cooling and waste management for the destination, with no connection to Saudi Arabia’s national electricity grid.
The system currently supplies all of Red Sea Global’s operational hotels, Red Sea International Airport, a logistics hub, an electric vehicle fleet, a staff village and other community facilities. It can generate up to 760,000 MWh of clean electricity a year, which the developers say avoids approximately 600,000 tonnes of carbon dioxide annually when running at full capacity.
Total investment in the project is approximately US$1.84 billion, according to ACWA Power. AGBI reported the figure as “the $1.8 billion Acwa initiative,” a rounded figure consistent with ACWA Power’s stated total. Financial close was reached in February 2022, with approximately $1.33 billion in senior debt facilities funded by Saudi and international banks.
Mohammad Abunayyan, Founder and Chairman of ACWA, said the project “sets a new global benchmark for sustainable development.” He added that the 25-year concession “reflects the long-term nature of this partnership, with Acwa and its partners developing, operating and maintaining the utilities that will serve the destination for the life of the concession.”
John Pagano, Group CEO at Red Sea Global, said: “By operating without a connection to the national grid and powering the destination entirely through renewable energy, we are demonstrating how sustainable infrastructure can support tourism that gives back to the natural environment and communities on which it depends.”
Omar Al Hassan, CEO of ACWA Saudi Arabia, told AGBI the milestone “demonstrates that large-scale developments can be powered entirely by renewable energy.”
Project scope
The utility system was engineered and constructed by SEPCO III, part of the Shandong Tiejun consortium, as EPC contractor, and is operated and maintained by ACWA Operations for the full concession period. Beyond power generation, the project includes three seawater reverse osmosis desalination plants, a waste management center, and a sewage treatment plant with capacity to treat 16,000 cubic meters of wastewater per day. Treated water is used to create new wetland habitats and to irrigate Red Sea Global’s landscape nursery and the Shura Links golf course. A district cooling system totaling 32,500 refrigeration tons serves the hotels and the airport.
The consortium reported the construction phase was completed with no lost-time injuries across 30 million safe working hours.
Key figures
| Metric | Figure |
|---|---|
| Solar PV capacity | 340 MWac |
| Battery storage capacity | 1,227 MWh (largest off-grid battery system built) |
| Annual clean generation | Up to 760,000 MWh |
| CO2 avoided per year | Approximately 600,000 tonnes |
| Total project investment | Approximately US$1.84 billion |
| Senior debt facilities | Approximately US$1.33 billion (financial close, February 2022) |
| Concession length | 25 years |
| Sewage treatment capacity | 16,000 m3/day |
| District cooling capacity | 32,500 refrigeration tons |
For scale, Winssolutions previously reported that US grid-scale battery storage additions reached a record 20.2 GWh in a single quarter nationwide, while global battery storage additions hit a record 108 GW in 2025, according to the IEA. The Red Sea project’s 1,227 MWh battery facility is a single off-grid installation serving one destination, illustrating how large-scale storage is being deployed both at grid level and in standalone systems.
Background: ACWA Power and the Red Sea project
ACWA Power, a Saudi-listed company, describes itself as the world’s largest private water desalination company and a first mover into green hydrogen at scale. The Red Sea utilities contract was awarded to the ACWA-led consortium in November 2020, aimed at providing the destination with 100 percent renewable power. Financial close followed in February 2022, when the project secured approximately $1.33 billion in senior debt facilities from Saudi and international banks, a milestone the company described as a landmark in bankability for first-of-a-kind off-grid infrastructure. The utility system’s structure allows additional capacity to be added as future development phases of the Red Sea destination come online. With the September 6, 2026 commercial operation date, ACWA Power and its partners begin a 25-year concession to operate and maintain the entire off-grid utilities platform serving the destination.
Sources: ACWA Power; Arab News; AGBI; Winssolutions; Winssolutions
Featured image: photo by Deane Bayas on Pexels (free Pexels license).
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I specialize in sustainability education, curriculum co-creation, and early-stage project strategy. At WINSS, I craft articles on sustainability, transformative AI, and related topics. When I’m not writing, you’ll find me chasing the perfect sushi roll, exploring cities around the globe, or unwinding with my dog Puffy — the world’s most loyal sidekick.
