A major hydroelectric power project in the kingdom’s futuristic Neom megacity was quietly canceled by Saudi Arabia and France’s EDF. Not much time has passed since EDF was awarded the contract in January 2024 to carry out feasibility studies for a hydroelectric power plant that would be constructed in the desert city.
The Saudi government notified EDF in March 2024 that the hydroelectric plant was no longer needed. The city’s energy needs would instead be met by renewable energy sources like photovoltaic panels, wind power, and batteries, according to officials in charge of the Neom project, which is a component of Crown Prince Mohammed bin Salman’s Vision 2030 initiative. This change is a component of larger cost-cutting and scaling-back initiatives because the ambitious project, which was initially projected to cost $500 billion, has now grown to an estimated $8.8 trillion.
Launched in 2017, Neom is a sprawling development that will include a luxury island resort, a linear city called The Line, and even a ski resort for the Asian Winter Games in 2029. However, the project’s scope has been significantly reduced as a result of several difficulties. According to Bloomberg, the city that was originally planned to be 170 kilometers has now been reduced to just 2.4 kilometers.
Employees at EDF’s La Motte-Servolex hydraulic engineering center had conflicting opinions. Some staff members expressed relief because they believed the project did not align with EDF’s sustainability pledges, while others bemoaned the loss of a technical challenge. EDF engineers had spent years researching the viability of a hydroelectric plant, which included pipeline transportation of desalinated seawater to the desert.
Serious logistical issues have also plagued the Neom project, including crowded labor camps, poor infrastructure, and numerous safety incidents. Five fatal accidents were reported in November 2024. Because of this, Aiman al-Mudaifer, Neom’s acting CEO, has started a thorough review of the project to reevaluate its scope in light of the company’s limited resources and declining oil prices.
As part of its efforts to diversify its economy away from oil, Saudi Arabia is still dedicated to Neom, even in a scaled-down form, despite setbacks.
