The Saudi Power Procurement Company (SPPC), the Principal Buyer, has signed four storage service agreements (SSAs) covering the first group of Battery Energy Storage System (BESS) projects in Saudi Arabia. The agreements represent combined investments worth over SAR4.35 billion ($1.16 billion), marking a major step in the development of large-scale energy storage facilities in the Kingdom.

Collectively, the USD 1.16B Saudi BESS projects will provide 2,000MW of storage capacity for four hours, representing 8,000 MWh of energy storage capacity. The facilities will be developed under the build-own-operate (BOO) model.

BESS Facilities Awarded to Global Consortiums

SPPC said a consortium comprising Saudi Energy, Acwa Power and Al Sharif Contracting and Commercial Development Company has secured the contract for three 500 MW/4-hour BESS facilities.

The projects include Al Muwyah BESS ISP in Makkah Region, which will provide 500 MW for four hours, Haden BESS ISP in Makkah Region, also with a capacity of 500 MW for four hours, and Al Kahafa BESS ISP in Hail Region, which will deliver 500 MW for four hours.

Separately, the Al Khushaybi BESS ISP project in Qassim Region has been awarded to a consortium comprising French utility major Engie and Haji Abdullah Alireza & Company. The project will also have a capacity of 500 MW for four hours.

The scope of the USD 1.16B Saudi BESS projects includes the development, financing, construction, ownership, operation and maintenance of large-scale battery energy storage facilities.

Storage Facilities to Support Grid Operations

Under the agreements, the USD 1.16B Saudi BESS projects will be capable of storing electricity for up to four hours before dispatching power when required. Their operation is intended to support grid stability, provide greater operational flexibility and strengthen the security and reliability of electricity supply across Saudi Arabia.

The agreements were signed in the presence of Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, who also serves as Minister of Industry and Mineral Resources and Chairman of the Board of Managers of SPPC. Supervised by the Ministry of Energy, the projects are part of Saudi Arabia’s wider programme to expand energy storage infrastructure and enable the large-scale integration of renewable energy into the national electricity system.

The USD 1.16B Saudi BESS projects are also expected to support the Kingdom’s target of achieving an optimal electricity generation mix comprising approximately 50% renewable energy by 2030, while addressing growing electricity demand and reducing reliance on conventional generation during periods of peak demand.