A consortium of developers led by ACWA Power has secured financing for the massive Red Sea tourism project, on the west coast of Saudi Arabia, which is set to feature a 320 MW solar array and a 1.3 GWh off-grid battery. The project has reached financial close securing a $1.3 billion debt facility. The $1.302 billion senior debt facilities have been secured by ACWA Power, SPIC Huanghe Hydropower Development Company, and Saudi Tabreed Cooling Company.
The Red Sea Development Company (TRSDC), the project’s developer, has selected ACWA Power to design, build, operate, and transfer the Red Sea Project’s utilities infrastructure. Huawei will reportedly provide the BESS. Furthermore, its capacity ranges between 1,200 and 1,300 MWh, making it the world’s largest off-grid BESS reportedly. Reports indicated that for power generation, water production, wastewater treatment, and district cooling, the Red Sea resort will rely totally on renewable energy. A solar photovoltaic plant with a capacity of 340 MW will be included. The project’s first phase will open in late 2022.
In January 2022, a consortium led by ACWA Power inaugurated the 500 MW Ibri 2 solar independent power project in Oman in partnership with the Oman Power and Water Procurement Company (OPWP). Ibri 2 is located in Ad-Dhahirah Governorate and was built with a $417 million investment on a build-own-operate basis. ACWA Power is the project’s principal investor, with a 50 per cent share. Gulf Investment Corporation owns 40 per cent of the project, with Alternative Energy Projects owning the remaining 10 per cent.
REGlobal’s Views: ACWA Power is one of the leading energy companies in the middle east region and the completion of this massive and unique facility will expand ACWA Power’s portfolio and reach in the region.
