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2026-09-112026 年 9 月 6 日, the Saudi Red Sea integrated utility system has officially entered commercial operation and commenced its 25 年-year concession. The project is jointly developed and operated by a consortium of Saudi Acwa, China's SPIC Huanghe Hydropower, and Saudi Tabreed, integrating 340 MWac PV + 1 227 MWh energy storage, 3 seawater reverse osmosis desalination plants, and 1 1.6 万 m³/d wastewater treatment plants. It is a landmark project marking the first time a Chinese central state-owned enterprise has entered the commercial operation of Saudi Arabia's "solar + storage + water + cooling + waste" five-in-one integrated utility as a consortium member.
I. Project Milestone: 9 月 6 日 Commercial Operation, 25 年 Concession Commencement
According to EL7.AI 9 月 6 日 report, Marafiq Red Sea for Energy and Red Sea Utilities Company, a subsidiary of Red Sea Global, signed the commercial operation certificate in Riyadh, the capital of Saudi Arabia, confirming that the Red Sea integrated utility system has officially entered commercial operation and commenced its 25 年-year concession.
The consortium consists of three industry giants:
- Saudi Acwa (Acwa Power) — a leading developer in Saudi Arabia's power and seawater desalination sector, leading the consortium and serving as the EPC contractor;
- China SPIC Huanghe Hydropower — Huanghe Hydropower Development Co., Ltd. under the State Power Investment Corporation, providing PV and energy storage system integration;
- Saudi Tabreed — the leading district cooling provider in the Middle East, responsible for the district cooling business.
The signing of the commercial operation certificate means that this flagship PPP project, which reached financial close on 2022 年 2 月, has officially entered the revenue realization phase.
II. Five-in-One Integrated Utility: 3 Seawater Desalination Plants + 1.6 万 m³/d Wastewater Treatment Plant
The project's greatest highlight is its "five-in-one" business model — integrating traditionally separate power, water supply, wastewater, cooling, and waste management services into a single concession framework:
- Renewable Power — 340 MW AC-side PV installed capacity + 1 227 MWh energy storage system, with the entire system operating independently without connection to the national grid; energy storage supports nighttime power supply, ensuring 24 小时 green power supply;
- Drinking Water — 3 seawater reverse osmosis (SWRO) desalination plants, providing a stable drinking water source for the resort area and airport;
- Wastewater Treatment — 1 wastewater treatment plants with a capacity of 16 000 m³/d (approximately 1.6 万 m³/d), with treated water used for landscape irrigation and supporting a newly built wetland ecosystem;
- District Cooling — led by Tabreed, providing efficient centralized cooling covering hotels, the airport, and communities;
- Waste Management — supported by a waste management center, covering solid waste collection and resource recovery.
III. 25 年-Year Concession Structure: PIF Guarantee + Single Offtake
The project's financing structure closed on 2022 年 2 月, with funding sources including dual-currency loans in US dollars and Saudi riyals, provided by Al Rajhi Bank, Banque Saudi Fransi, Riyad Bank, Standard Chartered, and other local and international banks. The core features of the commercial structure are:
- Project Company Equity——100% is held by the consortium, and Red Sea Global (the resort developer) does not directly invest in utility assets;
- Power Purchase Agreement (PPA)——the exclusive 25 年 phase has Red Sea Utilities Company as the single buyer, centrally procuring five services;
- PIF Guarantee——the PPA is guaranteed by the Saudi Public Investment Fund (PIF), minimizing project cash flow risk to the greatest extent;
- Expansion Flexibility——the utility platform is designed with reserved expansion interfaces, allowing installed capacity and treatment capacity to increase with resort expansion and subsequent phase development.
IV. Demonstration Significance for Chinese Water Equipment Going Global and Central SOE Cooperation Models
The Red Sea integrated utility project has demonstration significance for Chinese water equipment going global at three levels:
- The central SOE overseas consortium model is replicable——Yellow River Hydropower entered the commercial operation of Saudi Arabia's "solar + storage + water + cooling + waste" five-in-one integrated utility for the first time as a consortium member, proving that the tripartite consortium model of "central SOE + local leader + international specialist" can undertake super-large integrated PPP projects;
- The five-in-one business model expands the boundaries of water services——seawater desalination, wastewater treatment, district cooling, and waste management are integrated into the same platform, giving water service providers the opportunity to upgrade from a single water engineering firm to an integrated utility partner;
- The long-cycle O&M market of 25 年 opens up——the 25 年 concession means sustained 25 年 demand for O&M services, equipment replacement, and smart upgrades, and the company's membrane modules, automation equipment, SCADA platforms, etc. can enter Saudi Arabia's high-end market as part of a long-term O&M supply chain.
V. Impact on TIANYI TECH's Middle East Business
TIANYI TECH has long followed the Middle East water market. After the launch of commercial operation of the Red Sea integrated utility, the company can enter related markets in the following three directions:
- PV-coupled water treatment equipment——demand for the combination of "green power direct supply + membrane water treatment" is growing rapidly in remote islands, mining areas, and oilfield scenarios, and the company's containerized SWRO and PV-RO integrated systems can directly connect to this;
- Wetland and ecological water replenishment equipment——the project particularly emphasizes the use of treated water for a "newly built wetland ecosystem," and the company's constructed wetland modules, ecological slope protection, and precise metering systems for ecological water replenishment have room for connection;
- Integrated utility intelligent dispatch platform——the five-in-one business model creates demand for an integrated platform for SCADA, energy management, water dispatch, and waste traceability, and the company can cooperate with domestic industrial internet vendors to deliver packaged solutions.
Source: EL7.AI "Acwa consortium: Red Sea utilities in commercial service with 25-year concession" (2026-09-06), Red Sea Global official announcement.
About TIANYI TECH Co., Ltd.
TIANYI TECH Co., Ltd. is an international water service provider focusing on the R&D, EPC, and O&M services of wastewater treatment and reclaimed water reuse equipment, with business covering the full chain of scenarios including advanced treatment and zero liquid discharge of industrial wastewater, centralized treatment of municipal and industrial park wastewater, reclaimed water utilization, seawater desalination pretreatment, and sludge resource recovery. With "TIANYI LIMITED" as its unified brand identity, the company has deeply cultivated markets along the "Belt and Road" including Southeast Asia, the Middle East, and Africa, providing customers with full-cycle solutions from feasibility study, design, equipment manufacturing, installation and commissioning, to operation trusteeship.
