Saudi Arabia Signs USD 1.16 Billion Deals for 2 GW Battery Storage

Agreements worth more than USD 1.16 billion have been signed for four battery energy storage projects across Saudi Arabia, with a combined power capacity of 2,000 megawatts and four-hour storage duration.

The Saudi Power Procurement Company signed the storage service agreements for the first batch of battery energy storage system projects to be developed under a build-own-operate model. Together, the four facilities will provide 8,000 megawatt-hours of storage capacity.

Three of the projects are located in the Makkah and Hail regions. The 500 MW Al-Muwyah and Haden projects in Makkah, alongside the 500 MW Al-Kahafa project in Hail, were awarded to a consortium comprising Saudi Energy Co., ACWA and Al Sharif Contracting and Commercial Development Co.

The fourth project, the 500 MW Al-Khushaybi facility in Qassim, was awarded to a consortium including France’s Engie and Haji Abdullah Alireza and Company.

The projects are intended to improve the reliability and flexibility of the electricity grid, particularly as more renewable energy capacity is added. Battery storage can absorb electricity when generation is high and release it later when demand increases or renewable output falls.

The Saudi Power Procurement Company is responsible for conducting preliminary studies, tendering power generation and storage projects, and signing agreements with selected developer consortia.