ACWA to Asharq Al-Awsat: Energy storage keeps pace with renewable energy expansion in Saudi Arabia

Aqua, the Saudi company, is developing projects in renewable energy, electricity storage, and desalination, at a time when the expansion of artificial intelligence and data centers is driving up electricity demand, thereby increasing the importance of supply reliability, operational efficiency, and cost.

Omar Al-Hassan, the Chief Executive Officer of Aqua in Saudi Arabia, told Asharq Al-Awsat that the rapid growth in artificial intelligence and data centers is changing the requirements of the energy sector. The challenge is no longer limited to providing larger quantities of electricity, but also includes ensuring the continuity, efficiency, and competitive cost of supply.

He added that the company is working on developing projects that combine renewable energy, storage, and solutions that enhance supply reliability, leveraging its experience in large-scale energy and water projects. Its total electricity generation capacity stands at 98.2 gigawatts, while its desalination portfolio capacity reaches 9.7 million cubic meters per day.

Al-Hassan noted that Aqua is also working to leverage digital technologies and artificial intelligence to improve the performance of its assets, going beyond meeting the increasing demand for electricity to developing more efficient and reliable solutions.

Omar Al-Hassan, Chief Executive Officer of Aqua in Saudi Arabia (Aqua)

Power storage supports the expansion of renewable energy

As solar and wind energy projects expand in Saudi Arabia, the importance of electricity storage is growing to utilize power generated during periods of surplus and make it available when demand rises, according to Al-Hassan. He predicted that storage will play an increasingly significant role in the energy system, alongside generation sources and transmission networks.

In this context, ACWA Power signed three agreements with the Saudi Electricity Company, acting as the primary buyer, in August 2026 to develop battery-based electricity storage projects in Hazn, Al-Muwaih, and Al-Kahfa. These projects have a total capacity of 1,500 megawatts and a storage capacity of up to 6,000 megawatt-hours, under 15-year agreements.

Al-Hassan stated that these projects reflect the opportunities available in the Saudi market and the importance of storage in supporting the expansion of renewable energy. He anticipated that storage would become a more critical component in the planning of new projects, based on grid needs, individual project requirements, and economic viability.

The Red Sea Project integrates power generation and storage

In the Red Sea project, which combines solar power with battery storage, the most significant outcome, according to Al-Hassan, is demonstrating the feasibility of operating an integrated facility system powered by renewables and storage without connection to the national grid.

The project reached commercial operation in September 2026, featuring a 340-megawatt solar power plant and a battery storage system with a capacity of 1.227 megawatt-hours.

Al-Hassan explained that the project underscores the importance of integrated planning from the outset, ensuring that generation and storage capacities are designed to meet actual demand and guarantee supply continuity. He added that the success of renewable energy projects depends not only on generation capacity but also on the integration of system components and operational efficiency, while accounting for the varying needs, costs, and operational requirements of different sites.

Red Sea Facilities Project (Aqua)

Partnerships to develop water desalination technologies

In the water sector, ACWA Power sees opportunities to advance desalination by expanding the use of renewable energy and adopting more efficient technologies, which contribute to reducing energy consumption and production costs while meeting growing demand.

According to Al-Hassan, the company’s desalination portfolio capacity stands at 9.7 million cubic meters per day. He noted that the company is focused on improving plant efficiency, developing desalination technologies, and leveraging renewable energy to reduce reliance on conventional energy sources, where technical and economic conditions permit.

In August 2026, ACWA Power signed a memorandum of understanding with Veolia to collaborate on developing desalination plant designs and equipment, as well as enhancing their operational performance. The company also signed a joint development agreement with PT Garuda in Indonesia to establish a project combining seawater desalination with industrial salt production, enabling the use of the project’s infrastructure to meet water needs and support industrial activities.

According to Al-Hassan, growth opportunities in the sector include increasing water production, improving the efficiency of existing plants, developing new technologies, and expanding partnerships that help provide water reliably and at competitive costs.