Acwa Power taps artificial intelligence

14 October 2024

Riyadh-headquartered utility and green hydrogen developer and investor Acwa Power has topped MEED’s annual power and water developer ranking over the past few years.

The company’s portfolio, which it values at approximately $94bn, includes 49 thermal and renewable energy power plants and about a dozen water desalination plants.

These assets can generate 65GW of power and 8 million cubic metres a day of desalinated water.

Acwa Power continues to bid and win new contracts at home and abroad under Marco Arcelli, who was appointed as the firm’s chief executive shortly after Paddy Padmanathan, the firm’s CEO for 18 years, stepped down in March last year.

The company has tapped artificial intelligence (AI) and the stacks of technologies behind it to enable its future strategy, notes Thomas Altmann, the company’s executive vice-president for innovation and new technology.

“At Acwa Power, we are not talking about AI, we are doing it,” says Altmann, who cites that the company has developed an in-house algorithm to enable an augmented AI or human-in-the-loop (HITL) AI application.

Through this application, a plant operator may receive data or advice from an AI-enabled module that can trigger a response after the data is validated through the operator’s experience.

“We are focusing on human-in-the-loop, under the umbrella of collective intelligence … this in-house artificial neural network (ANN) algorithm has so far contributed to about 12% cost reduction of chemical dosing in one of our water desalination plants, which encourages us to industrialise this technology and implement it in selected plants,” explains Altmann.

“I think generally that AI is not stoppable; we’re not using it as a buzzword; we are focusing very much on use cases that make sense and create bottom-line impact.”

Analytics and machine learning

Acwa Power has been at the forefront of innovations not just in operating its plants but in winning tenders by proposing the use of new technologies.

“Over the past decade, we managed to reduce power consumption in our desalination plants by over 80%,” notes Altmann.

“I recall in 2005 when Acwa Power submitted the first bid, most of the desalination plants that were built during that period were based on thermal water desalination technologies such as MSF.”

However, things changed when Saudi Arabia tendered the Shuqaiq 2 independent water and power project (IWPP), which, for the first time, did not prescribe a specific technology for the project’s desalination unit. 

There are a lot of things that typically are not discussed, like having to write new procedures to distinguish tasks that can be done by robots, algorithms and humans

“This allowed Acwa Power to innovate and deploy for the first time a membrane-based desalination technology at scale in Saudi Arabia. We were the only consortium that offered to build a 100% reverse osmosis plant in combination with a power plant (IWPP). Our bid was successful by offering 17% to 19% lower tariff due to significantly lower energy consumption compared to an MSF plant,” Altmann said.

Several years later, with the Rabigh 3 independent water project, the offtaker specified a drastically reduced energy consumption. Altmann said they “had to press the reset button, turn every stone and create a paradigm shift in RO design to meet these requirements”.

At this point, Acwa Power has used the so-called Typical Meteorological Year (TMY) methodology for renewable energy to predict future power generation in solar plants.

Altmann subsequently introduced a similar Typical Seawater Year (TSY) methodology, which used the previous five years’ worth of seawater data, used big data analytics to understand seawater resources, and designed their plant according to this result.

“This contributed significantly to our successful bid because we used real data rather than assumed data based on the request for proposals and implemented several design improvements, which resulted in the lowest ever specific energy consumption for RO in the region,” the executive noted.

Altmann says Acwa Power also introduced the so-called pressure centre in an RO plant in Saudi Arabia, where a high-pressure pump in a desalination plant is not necessarily linked to one reverse osmosis (RO) train. Instead, a pipe connects the pump and the racks, and each pipe can fit any rack. This allows fewer and larger pumps to be used and improves efficiency.

“Rabigh 3 was a breakthrough, and we continued to further optimise the process, and the results were applied, for example, in Taweelah in Abu Dhabi and Jubail 3A in Saudi Arabia. 

“We added a solar component to the Taweelah IWP as an innovation and we continued to fine-tune and optimise as we move forward.”

Altmann also says they were the first to introduce machine learning to reduce chemical costs and predict the optimal time for membrane cleaning in RO desalination plants in the region.

The goal is to continue innovating into the future, says Altmann, citing their research and development (R&D) centres in leading universities across the GCC, in particular at the King Abdullah University of Science and Technology in Saudi Arabia, where they operate centres of excellence focusing on water, solar, hydrogen and AI.

AI and the future of utility jobs

While a fully autonomous water desalination plant may still be a few years away depending on how fast AI technologies develop, Altmann acknowledges that future plants will have fewer people on the floor.

This does not necessarily mean large-scale staff displacement since “we keep winning new plants, and we can reassign and retrain or reskill our staff.”

“As some jobs disappear, new jobs will be created,” adds Altmann. “There are many opportunities to utilise experienced people.”

The executive, however, cautions that AI deployment in a company is not just a matter of installing software codes.

It requires a change in culture and processes, particularly in HR, where one has to move away from thinking of employees’ positions or jobs but rather their tasks.

“One needs to distinguish which tasks require a lot of data, and involve routines, and which can be done by an algorithm, versus tasks involving creativity, human interaction or validation against ethical standards or privacy compliance and so on.”

“There are a lot of things that typically are not discussed, like having to write new procedures to distinguish tasks that robots, algorithms and humans can do,” he continues.

The executive also cites the paramount importance of the quality of data and the AI readiness of the Internet of Things (IoT) system to enable AI applications.

“The most important thing, besides ethics and privacy, from a technical perspective, is data. If you want a high-quality prediction or an advisory module, you need to put most of your effort into the data first.

“Utilising an algorithm … that’s the easy part, the difficult one is to get clean data, eliminate bias, noise and spurious correlations and consider differential shifts in the training of data since AI works differently to a human brain. AI doesn’t have an intuition or awareness to sense biases and is susceptible to providing wrong predictions,” explains Altmann.

Renewable-powered desalination plants

Altmann argues that if green hydrogen can be produced using 100% renewable energy, the same can be applied to water production.

Acwa Power built a 20MW solar PV to complement the grid-sourced electricity supply for the Taweelah IWP in Abu Dhabi because, according to Altmann, the RFP did not disallow it.

They are looking at doing more of these projects where it makes sense from a sustainability and efficiency point of view.

“The (Taweelah) RFP did not disallow the installation of a solar PV, and there was an available space, so we went ahead to build an on-site solar PV farm, which allowed us to reduce more expensive energy import from the grid.”

Altmann asserts that desalinated water can have a zero-carbon footprint by building captive water desalination plants or sourcing clean energy from the grid.

However, moving to a 100% renewable source will increase the complexity of building desalination plants.

“There’s a difference from a technical perspective if you take power from the grid, which has certain stability and inertia and is often linked to power plants.

“You will need to redesign the desalination plants differently, with a different operation strategy and different motors, and to deploy long-duration energy storage due to intermittency of renewable energy,” he concludes.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12681934/main.gif
Jennifer Aguinaldo
Related Articles
  • Iraq gas field project disrupted by regional conflict

    26 March 2026

     

    Register for MEED’s 14-day trial access 

    Progress on Iraq’s project to develop the strategically important Akkas gas field has been disrupted by security issues related to the US and Israel’s ongoing war with Iran, according to industry sources.

    Work activity at the project site has been significantly reduced due to security concerns, and the project is now expected to take longer to complete.

    Iraq held a ceremony in January this year to mark the restart of drilling operations at the site as part of the field development project.

    In July last year, Iraq’s Oil Ministry announced signing a contract with the US-based oil field services provider SLB to develop production at Iraq’s Akkas gas field.

    Under the terms of the deal, SLB will drill wells at the Akkas field, aiming to initially raise production to 100 million cubic feet a day (cf/d).

    Many of SLB’s non-Iraqi employees have now been evacuated from the country.

    Over the long term, Iraq is targeting gas production of 400 million cf/d from the field.

    The contract with SLB replaces a previous deal with Ukraine-based Ukrzemresurs, which has been terminated.

    It also covers the construction of surface infrastructure and pipelines to connect Akkas to central processing units.

    The gas produced at Akkas will be used to fuel the Anbar combined-cycle power plant, which is under construction by the Electricity Ministry.

    Akkas gas field development

    The Akkas gas field, located in Anbar province in western Iraq, has 5.6 trillion cubic feet of proven reserves. The field was discovered in 1992 and began production in 1993.

    Since then, Iraq’s plans to develop the Akkas gas field to its full potential have experienced several setbacks.

    In April last year, the Iraqi Oil Ministry signed an agreement with Ukrzemresurs to develop the field.

    At the time, the Oil Ministry said that the partners were aiming to produce 100 million cf/d in the first two years, as per the agreement, with output targeted to increase to 400 million cf/d within four years.

    Prior to Ukrzemresurs, South Korean company Kogas was responsible for developing the field.

    Rights to the field were originally awarded to a consortium of Kogas and Kazakhstan’s state-owned oil company KazMunaiGas (KMG) in the third licensing round, which was launched in October 2011.

    KMG pulled out, leaving Kogas as the sole investor and operator on new contract terms.

    When the deal with Ukrzemresurs was originally announced last year, it was negatively received by some Iraqi politicians, with the Oil and Gas Committee in Iraq’s parliament rejecting the contract signing.

    At the time, Ali Al-Mashkour, a member of the Oil and Gas Committee, told Iraq’s Shafaq News Agency: “This contract involves a great waste of Iraq’s wealth, and there will be a waste of Iraq’s oil, and this confirms that Iraq is once again failing to choose reputable companies to work with in the most important economic field in the country.”

    He added: “We will work to uncover and expose the suspicions in this contract during the next stage, especially since this contract was made by some representatives for specific interests, which we will reveal soon with evidence.”

    Plans to sign the contract to develop the Akkas gas field with a Ukrainian company were first announced by the Oil Ministry in September 2023, but Ukrzemresurs was not named at the time.

    Iraq’s government is trying to transform the country into a gas-exporting nation. Currently, Iraq is reliant on Iran for gas imports.

    Both Saudi Arabia and the US, which are looking to contain Iranian influence in the region, have been supporting Iraq in developing its non-associated gas fields as this will reduce Iraq’s economic reliance on Iran.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16138892/main.png
    Wil Crisp
  • Dubai seeks contractors for Nadd Hessa stormwater project

    26 March 2026

    Dubai Municipality has invited contractors to prequalify for a contract to build a sewerage and stormwater system in the Nadd Hessa area.

    The project is being procured through the Sewerage and Recycled Water Projects Department.

    The submission deadline is 2 April.

    Nadd Hessa is an emerging development area, located between Dubai Silicon Oasis and Academic City along the E311 corridor.

    It has been earmarked for future residential expansion, with enabling infrastructure now being tendered to support planned housing and community developments in the area.

    The scheme, known as DS 328/1–C1, covers the construction of sewerage and stormwater infrastructure, including approximately 12.4 kilometres of sewerage lines with diameters of up to 400 millimetres.

    The scope also includes about 14km of stormwater lines with diameters of up to 1,000 millimetres.

    In addition, the project involves around 500 metres of microtunnelling works for both sewerage and stormwater networks.

    The municipality is currently prequalifying contractors for several upcoming water projects, including the expansion of the Jebel Ali sewage treatment plant (STP) phases one and two.

    The upgraded facility will be capable of treating an additional sewage flow of 100,000 cubic metres a day (cm/d).

    Bid submissions for this project are also due by 2 April.

    In addition, the authority is planning a broader review of Dubai’s water and wastewater infrastructure to support future population growth, including identifying locations for future infrastructure. 

    Two separate consultancy tenders were issued in March.

    One involves a study to develop a sustainable urban drainage systems strategy across the emirate. The other covers a review of the emirate’s sewage treatment and recycled water distribution strategy. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16138660/main.jpg
    Mark Dowdall
  • WEBINAR: Saudi Gigaprojects 2026 & Beyond

    25 March 2026

    Webinar: MEED in association with HKA Webinar on Saudi Gigaprojects 2026 & Beyond
    Tuesday 31 March | 1:00 GST  |  Register now


    Agenda:

    As Saudi Arabia’s gigaprojects move from vision to delivery, the kingdom’s projects market continues to evolve at an unprecedented pace. Billions of dollars’ worth of contracts are being awarded across infrastructure, real estate, tourism and critical industries, creating huge opportunities — but also new layers of complexity.

    This MEED Live broadcast, in association with HKA, brings together market intelligence and practical expertise to help project stakeholders understand and navigate the risks in this dynamic landscape.

    The session will open with Ed James, MEED’s head of content and research, who will deliver a comprehensive 30-minute outlook on Saudi Arabia’s gigaprojects and beyond. Drawing on MEED’s proprietary data and insights, Ed will highlight the scale of opportunity, sectoral trends and the finance shifts shaping the region’s project pipeline.

    Following the outlook, Ed will host an in-depth fireside chat with Haroon Niazi, partner at HKA, focusing on the critical theme of contractual risk management. In a market defined by rapid delivery schedules, shifting finance conditions and complex stakeholder ecosystems, Haroon will share strategies for mitigating disputes, safeguarding margins, and building resilient contracts that can withstand uncertainty.

    The broadcast will conclude with a live Q&A session, giving the audience the opportunity to engage directly with Ed and Haroon, and to take away actionable insights that will support their involvement in Saudi Arabia’s gigaprojects.

    Click here to register

    Hosted by: Edward James, head of content and analysis at MEED

    A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. 

    Haroon Niazi, partner, construction claims and expert services lead, International·HKA

    Haroon is a dual-qualified Chartered Quantity Surveyor (FRICS) and barrister with over 18 years of experience in the construction industry. He leads HKA’s Construction Claims and Expert Services Line across Europe, the Middle East, and Africa, overseeing a team of more than 200 consultants with responsibility for strategy and delivering the growth plan. His practice focuses on the resolution of complex and high-value construction disputes.   He has been appointed as a quantum expert and has delivered expert testimony in international arbitration and litigation, including in the Kingdom of Saudi Arabia. Haroon is known for his ability to analyse, quantify, and communicate the financial aspects of construction claims with clarity and independence.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16116602/main.gif
    MEED Editorial
  • Diriyah tenders media district north offices

    25 March 2026

     

    Saudi gigaproject developer Diriyah Company has tendered a contract inviting firms to bid for the construction of offices in the media district in the second phase of the Diriyah Gate development (DG2).

    The tender was released in March, with a bid submission deadline of 27 April.

    The scope covers the construction of five office plots comprising nine buildings, spanning over 50,000 square metres (sq m).

    The tender follows the Diriyah Company’s award of an estimated SR2.5bn ($666m) contract to build the Pendry superblock package in the DG2 area.

    The Pendry superblock encompasses the construction of a hotel, known as the Pendry Hotel, along with residential and commercial assets.

    The project will cover an area of 75,365 sq m and is located in the northwestern district of the DG2 area.

    In February, Diriyah Company awarded a SR717m ($192m) contract for the construction of the One Hotel, located in the Diriyah Two area of the masterplan.

    The project has a gross floor area of over 31,000 sq m.

    The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16114767/main.png
    Yasir Iqbal
  • Trojena terminates Ski Village steel structure contract

    25 March 2026

    Neom has terminated its contract with Malaysian contractor Eversendai Corporation for the steel structural works on the Ski Village project in Trojena, Saudi Arabia.

    In a statement published on its website, Eversendai said it had received an official notice that the termination will take effect from 26 March.

    Eversendai is jointly executing the construction works on the project with Riyadh-based contractor Albawani. The contract was formally awarded in March 2024.

    In July 2024, UAE-based steel producer Emirates Steel announced that it had signed a steel supply agreement for the Trojena Ski Village project.

    In January this year, Saudi Arabia confirmed the postponement of the 2029 Asian Winter Games, which were scheduled to be held at Trojena.

    Trojena had been chosen to host the event in October 2022.

    This latest public announcement comes shortly after Neom cancelled contracts for the construction of the tunnel sections of The Line in northwest Saudi Arabia.

    In a stock exchange announcement filed on 13 March, South Korean contractor Hyundai E&C said that Neom cancelled its contract on 29 December last year.

    Hyundai E&C was executing the drill-and-blast section of The Line’s tunnels in a joint venture with Greece’s Archirodon and South Korean counterpart Samsung C&T.

    These developments follow a wider strategic review of Neom last year, as Saudi Arabia reassesses priorities under its Vision 2030 programme. With tighter liquidity at the sovereign wealth fund level, resources are being redirected towards projects linked to the Fifa World Cup 2034, Expo 2030, and essential housing, healthcare and education initiatives.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16114360/main.jpg
    Yasir Iqbal