The Saudi Power Procurement Company (SPPC), under the supervision of the Ministry of Energy, has initiated the qualification process for the first group of Battery Energy Storage System (BESS) projects. These projects will contribute to a total capacity of 8,000 MWh (2,000 MW / 4 hours) and are part of Saudi Arabia’s efforts to enhance its renewable energy sector. The group consists of four projects, each with a 500 MW/4-hour capacity, located across different provinces in Saudi Arabia: Al-Muwyah and Haden in Makkah, Al-Khushaybi in Qassim, and Al-Kahafa in Hail.
Each project will be developed under a Build-Own-Operate (BOO) model, with the successful bidder holding full ownership of the special purpose vehicle (SPV) for each project. The projects will be managed through a 15-year Storage Services Agreement with SPPC. The goal is to increase the share of renewable energy in Saudi Arabia’s energy mix to 50% by 2030 and improve the resilience and reliability of the electric power system.
This marks a significant step in the region’s energy storage sector, establishing Saudi Arabia as a leader in energy storage in the MENA region. Recently, HiTHIUM Energy Storage announced plans to build a battery manufacturing facility in Saudi Arabia, and Sungrow Power Supply Co., Ltd. also secured agreements for projects that will add further storage capacity to the country. These initiatives highlight Saudi Arabia’s growing commitment to sustainable energy development.
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