A consortium of developers has secured $1.3 billion in debt financing for the utility infrastructure of the Red Sea project, which is under construction at a mega resort off the coast of Saudi Arabia and plans to deploy the world's largest off-grid,media reported. The battery energy storage system (BESS) has a total energy storage capacity of 1,200 to 1,300 MWh.

Saudi International Electricity and Water Company (ACWA) announced on February 24 that Saudi ACWA Power Company, China State Power Investment Corporation’s Upper Yellow River Hydropower Development Company and Saudi Taybrid Cooling Company have received $1.302 billion in senior debt financing.

ACWA Power has been authorized by the project developer Red Sea Development Corporation (TRSDC) to be responsible for the design, construction, operation and transfer of the Red Sea Project's utility infrastructure. Last month, the Red Sea Development Corporation (TRSDC) raised $3.76 billion in debt for its own projects.

According to industry media reports, Huawei will provide a battery energy storage system for the project, with an energy storage capacity of 1,200-1,300MWh, which will be the largest off-grid battery energy storage system to date.

Its senior debt is a combination of US dollar and riyal financing provided by a consortium of Saudi and international banks, including AlRajhi Bank, APICORP, Saudi France Bank, Riyadh Bank, Saudi British Bank, Saudi National Bank and Standard Chartered Bank.

ACWA said the Red Sea Resort will rely entirely on renewable energy for power generation, water production, wastewater treatment and district cooling. The company said the Red Sea project's utility infrastructure will include the deployment of a solar power project with an installed capacity of 340MW, the first phase of which will be operational by the end of 2022.

Paddy Padmanathan, CEO of ACWA Power, commented: "Saudi's Red Sea development is a remarkable project in terms of vision, ambition, scale and scope, pioneering responsible regenerative tourism, protecting the planet for future generations, while enhancing the visitor experience.”

Red Sea Development Corporation (TRSDC), the overall developer and purchaser of the project, will procure all utilities under a single off-take agreement, which includes the provision of renewable energy, potable water, wastewater treatment district cooling and solid waste treatment.

It is part of Crown Prince Mohammed bin Salman's Vision 2030 plan to modernize the country's economy and increase its renewable energy mix.

Saudi Arabia is building a brand new city on the Red Sea coast, NEOM, which will use 100% renewable energy, including large-scale green hydrogen.