Saudi Arabia builds its first 100% renewable energy project

     Recently, the Saudi Red Sea Development Corporation (TRSDC) signed a 25-year public utility construction contract with China Gezhouba Group Corporation and Saudi International Power and Water Corporation. Tourism area photovoltaic project powered by renewable energy.

     The Red Sea project includes more than 50 hotels on the west coast of Saudi Arabia. The Red Sea Development Company (TRSDC) behind the project promises that the project will be powered by wind and solar power. The master plan of the project was approved by King Salman of Saudi Arabia at the end of 2018. The resort plans to open in phases. The first phase includes the airport and four hotels, which will open at the end of 2022.

     This month, TRSDC signed a contract with a consortium led by ACWA Power to provide public infrastructure for the resort. ACWA Power is an investor and developer of Saudi energy projects, owning some of the largest solar power projects in the region and the lowest cost in the world. The initial demand for this contract is expected to be 210MW, and the contract period is 25 years.

     The consortium led by ACWA Power is a public-private partnership that includes financing from Saudi and international banks, including British Standard Chartered Bank (Standard Chartered Bank) and China's Silk Road Fund (Silk Road Fund). Earlier this year, Silk Road acquired a minority stake in the renewable energy division of ACWA Power. The partnership will ensure the design, construction and operation of public utility systems and related infrastructure, including water treatment and desalination.

     The Red Sea project will use battery energy storage systems to provide power around the clock. The battery will support the energy resilience of the entire 28,000 square kilometer area, including powering facilities at night and ensuring power supply in the event of a network outage or other problems. TRSDC stated that the combination of wind power and solar power will ensure a reliable energy supply. The supporting battery capacity of 1000MWh will be one of the largest battery energy storage projects planned and constructed in the world.

     The CEO of TRSDC stated that the size and scale of the project’s battery energy storage places this iconic renewable tourism destination at the forefront of the global transition to carbon neutrality. The installed capacity of wind power and solar power will surpass that of coal and natural gas in less than five years, and TRSDC is eager to promote the pace of this change.