The Saudi Arabia Power Procurement Company (SPPC) has signed four storage service agreements covering the first group of battery energy storage system (BESS) projects in Saudi Arabia. The total investment for the projects exceeds approximately $1.16 billion. The projects have a combined capacity of 2,000 MW/8,000 MWh, with four-hour storage duration. The projects will involve development, financing, construction, ownership, operation and maintenance of the BESS projects.
Furthermore, the projects will be developed under the build-own-operate model. The projects include the Al Muwyah, Haden and Al Kahafa BESS, each with 500 MW/2,000 MWh capacity. All the projects are awarded to a Saudi Energy, ACWA Power and Al Sharif consortium. The projects also include the Al Khushaybi BESS, also with 500 MW/2,000 MWh capacity which was awarded to an ENGIE and Haji Abdullah Alireza consortium.
In July 2026, SPPC announced qualified applicants for its second group of BESS projects. The projects have a combined capacity of 3,000 MW/12,000 MWh across Saudi Arabia. The projects include Samha, Al-Leeth, Al-Henakiyah, Khulis, Sadawi and Ashyrah BESS facilities. Successful bidders will establish special purpose vehicles and sign long-term storage services agreements with SPPC.
REGlobal’s Views: Saudi Arabia has been focused on diversifying its mainly fossil fuel dependent energy mix, and is now planning massive investments in renewable energy deployment. The ongoing middle east crisis has further strengthened the country’s strategy to slowly increase its base of non fossil fuel energy assets. Energy storage projects can be deployed quickly and help meet energy requirements to back up generation, transmission as well as distribution.