ACWA Power and SEPCOIII sign EPC contract for Red Sea Global’s solar-plus-storage microgrid in Saudi Arabia

Type: Supply Agreement · Technology: Solar, Storage, Water Waste, Telecom · Country: Saudi Arabia · Capacity: 358 MWac · Announced: 2026-09-01

ACWA Power engaged SEPCOIII, a subsidiary of PowerChina, to serve as the engineering, procurement, and construction (EPC) contractor for the Red Sea multi-utility project in Saudi Arabia. The contract, signed in February 2021, underpinned the development of a 358 MWac solar PV system paired with 1,225.4 MWh of battery energy storage, alongside 112.5 MW of backup internal-combustion generation for an off-grid tourism destination. The project integrates seawater desalination (32,500 cubic meters per day), wastewater treatment (16,000 cubic meters per day), district cooling (32,500 refrigeration tons), solid-waste management, and communications infrastructure including 5G. SEPCOIII executed construction starting in October 2021, with the storage unit commissioned in September 2023 and full commercial operation achieved on August 21, 2026. The microgrid operates independently of Saudi Arabia’s national transmission network, relying on grid-forming battery storage to maintain voltage and frequency while balancing variable solar output with demand.

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