SPPC has signed agreements for four BESS projects totaling 2 GW/8 GWh, with a combined investment of more than SAR 4.35 billion
The projects are part of the first group of standalone storage projects tendered in November 2024
The projects under 15-year storage service agreements will support Saudi Arabia’s renewable energy goals
Saudi Arabia’s Principal Buyer has signed four agreements for battery energy storage system (BESS) projects totaling 8 GWh, with a combined power capacity of 2,000 MW and a four-hour storage duration.
The Saudi Power Procurement Company (SPPC) says the four storage service agreements represent a total investment of over SAR 4.35 billion. These are among the first group of independent standalone storage projects supervised by the country’s Ministry of Energy under the build-own-operate (BOO) model.
Among the projects selected are the Al Muwayah BESS and Haden BESS ISP in Makkah, and the Al Kahafa BESS ISP in the Hail region, each with 500 MW capacity for 4 hours. These three facilities will be built by a consortium of Saudi Energy, ACWA, and Al Sharif Contracting and Commercial Development Company.
Another 500 MW project with a 4-hour storage component, the Al Khushaybi BESS ISP, will be developed by a consortium of ENGIE and Haji Abdullah Alireza & Co. Ltd. This will be located in the Qassim region.
All of these projects are part of the first group of standalone energy storage projects tendered by SPPC in November 2024 with a combined 2 GW/8 GWh capacity under 15-year storage service agreements.
The second group comprises six independent storage facilities, each with 500 MW/2,000 MWh and a 4-hour storage duration. In July 2026, SPPC pre-qualified 27 applicants for this round, representing a combined 12 GWh storage capacity (see Saudi Arabia Qualifies 27 Bidders For 12 GWh BESS Tender).
According to SPPC, the awarded facilities will ensure operational flexibility and energy security for Saudi Arabia.
These will also support renewable energy and energy storage integration into the country’s national electricity mix and contribute to the goal of achieving close to 50% renewable energy share by 2030. Saudi Arabia aims to increase its energy storage capacity to 48 GWh by the end of this decade.
