Abstract
Saudi Arabia’s is reshaping the power sector by targeting an electricity mix of roughly 50% renewables and 50% gas, while phasing down liquid fuels used for generation. In parallel, giga-projects such as NEOM and the Red Sea Project are expected to operate at or near 100% renewable energy, which makes smart microgrids with distributed solar, wind, and large-scale storage a practical pathway. This paper examines how hybrid solar–wind–battery microgrids can support remote, coastal, and high-value developments in the Kingdom, with emphasis on NEOM and Red Sea use cases. It first summarizes the national policy direction and renewable rollout, then consolidates international findings on microgrid architectures, energy management, and techno-economic outcomes for remote electrification. Saudi examples are discussed, including the Red Sea off-grid solar-plus-storage system and NEOM’s plans for an integrated renewable grid linked to a green-hydrogen ecosystem. A design framework is proposed covering resource assessment, system sizing, storage selection, and layered control. The techno-economic evaluation approach uses net present cost (NPC), levelized cost of electricity (LCOE), renewable fraction, loss of load probability (LOLP), and CO₂ abatement. Evidence from recent regional modeling and Saudi-relevant studies indicates that well-sized hybrid systems can cut diesel use by 70–100%, reduce lifecycle emissions by over 60%, and deliver reliability suited to tourism, industry, and critical infrastructure. Key barriers and research needs include islanded grid-code alignment, bankable revenue models, cyber-physical security, extreme-climate operation, and AI-enabled energy management.