Anchor
World's largest solar-storage microgrid reaches full commercial operation in Saudi Arabia
Built WorldSaudi Arabia's Red Sea destination now runs on 358 megawatts of solar and 1.2 gigawatt-hours of battery storage, independent of the national grid
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Overview
Updated 55 minutes agoAn entire tourism destination on Saudi Arabia's Red Sea coast now runs on its own solar-and-battery microgrid, with no connection to the national power grid. The project reached full commercial operation this week, pairing 358 megawatts of solar with 1,225 megawatt-hours of battery storage.
The microgrid powers resorts, an airport, desalination plants, and district cooling. Its batteries create the grid's voltage and frequency, a job normally done by spinning generators. That's what lets an isolated network run on solar and batteries, with 112.5 MW of fossil-fuel backup generation.
This is the largest off-grid solar-storage system ever built. It's also a working template for islands and remote sites where extending transmission lines is too expensive. The first year of operation will show whether grid-forming storage can deliver reliable 24/7 power, water, and cooling at this scale.
Why it matters
This microgrid shows solar-plus-storage can power an entire isolated utility around the clock — a template for islands and remote sites to cut diesel.
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Key Indicators
358 MWac
Installed solar capacity
The solar array is the microgrid's primary power source.
1,225.4 MWh
Battery storage capacity
Grid-forming batteries set the microgrid's voltage and frequency and cover nighttime demand.
112.5 MW
Backup internal-combustion generation
Fossil backup sits behind the renewable system for resilience.
$3.08B
Total project cost
The multi-utility project covers power, water, cooling, and waste services.
25 years
Utility concession term
Red Sea Global buys power, water, and cooling from the ACWA Power consortium under a build-own-operate-transfer deal.
Related Media
Saudi Arabia is building world's largest solar-storage microgrid | Renewable Energy News | Renewables Now
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People Involved
Organizations Involved
ACWA Power
Saudi utility developer
Owner and operator of the Red Sea utility under a 25-year concession
Saudi developer that builds and operates power and desalination plants across the Middle East, Africa, and Asia.
SEPCOIII
Engineering, procurement, and construction contractor
Built the Red Sea utility complex under a construction contract
Chinese construction and engineering firm, a subsidiary of PowerChina, that built the Red Sea utility complex.
Red Sea Global
Destination developer
Developer of the Red Sea destination and buyer of the utility's services
Saudi developer building a luxury tourism destination on the Red Sea coast, planned to include 50 hotels.
Public Investment Fund (PIF)
Saudi sovereign wealth fund
Owns Red Sea Global and backs the project's long-term offtake agreement
Saudi Arabia's sovereign wealth fund, which owns Red Sea Global and supports the project's offtake agreement.
Timeline
February 2021 September 2026
7 events
Latest: 2 days ago
Tap a bar to jump to that date
-
World's largest solar-storage microgrid fully online
Latest MilestoneThe Red Sea project reaches full commercial operation, powering the destination off-grid.
-
Full commercial operation announced
MilestoneSEPCOIII announces the full utility complex has reached commercial operation.
-
Guinness World Record certified
RecognitionGuinness certifies 1,125.18 megawatt-hours of the installation as the world's highest-capacity off-grid battery storage.
-
Battery storage starts operating
MilestoneThe 1.2 gigawatt-hour storage unit begins operation, with solar and storage progressively commissioned from 2023.
-
Financial close reached
FinancingThe project reaches financial close in early 2022, backed by international and local lenders.
-
Construction begins on solar and storage
ConstructionWork starts on the battery storage facility and solar plant on Saudi Arabia's western coast.
-
Contract signed for Red Sea utility project
ContractSEPCOIII signs the engineering, procurement, and construction contract with ACWA Power.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
June 2014
El Hierro wind-hydro project (2014)
The Canary Island of El Hierro commissioned an 11.5 MW wind farm paired with a pumped-hydro storage plant, aiming to run its isolated grid entirely on renewables. Technical problems with the hydro system kept renewable share far below the 100% target in the project's early years.
Then
The island kept relying on its diesel plant more than planned, and renewable penetration stayed well below the target for years.
Now
El Hierro became a cautionary example of how hard it is to decarbonize an isolated grid without reliable, fast-responding storage.
Why this matters now
The Red Sea project takes a different technical path, using grid-forming batteries instead of pumped hydro to create a stable isolated grid.
November 2016
Ta'u Island microgrid (2016)
Tesla and SolarCity completed a 1.4 MW solar array with 6 MWh of battery storage on Ta'u, a small island in American Samoa. The system replaced diesel generators that were refueled by barge, cutting the island's fuel use by roughly 100,000 gallons a year.
Then
The island's roughly 600 residents got near-continuous renewable power, with diesel kept only as backup.
Now
It became the most-cited proof that solar-plus-storage could replace diesel on isolated islands, but at village scale.
Why this matters now
The Red Sea project is about 250 times larger in solar capacity and 200 times larger in storage, showing how far off-grid renewable systems have scaled in a decade.
December 2017
Hornsdale Power Reserve (2017)
Tesla built a 100 MW, 129 MWh battery next to the Hornsdale wind farm in South Australia after a state-wide blackout in 2016. The battery responded to grid frequency disturbances in milliseconds, faster than any conventional generator.
Then
The battery stabilized South Australia's grid and earned significant grid-services revenue in its first year.
Now
It triggered a global wave of grid-scale battery deployments and proved batteries could provide services once reserved for spinning generators.
Why this matters now
Hornsdale proved batteries could support an existing grid. The Red Sea project goes further: its batteries create the grid itself, with no larger system to lean on.