Saudi Arabia has taken another major step towards strengthening its clean energy infrastructure by advancing the second phase of its large-scale Battery Energy Storage System (BESS) programme. The Saudi Power Procurement Company (SPPC), acting as the principal buyer under the supervision of the Ministry of Energy, has officially prequalified 27 developers to participate in the next stage of the programme. The initiative is aimed at improving the country’s electricity grid while supporting the growing integration of renewable energy sources such as solar and wind power.
The programme includes six battery energy storage projects with a combined capacity of 3 gigawatts (GW) and 12 gigawatt-hours (GWh). Each project will have a storage capacity of 500 megawatts (MW) and 2 GWh, providing up to four hours of energy storage. These battery systems are expected to enhance grid reliability by supplying electricity during periods of high demand and helping manage fluctuations in renewable power generation.
The projects will be developed across six strategic locations in different provinces of Saudi Arabia. These include the Samha project in Qassim Province, the Al-Leeth, Khulis, and Ashyrah projects in Makkah Province, the Al-Henakiyah project in Madinah Province, and the Sadawi project in the Eastern Province. The distribution of these projects across multiple regions is intended to improve the stability of the national grid and support the increasing share of renewable energy in the country’s power mix.
The projects will be implemented under a build-own-operate (BOO) model. Under this arrangement, the selected developers will establish a consortium that will own a special purpose vehicle (SPV) responsible for developing, constructing, owning, and operating each project. These project companies will enter into long-term Storage Services Agreements with SPPC, providing a structured framework for delivering battery storage services over the life of the projects.
The list of 27 prequalified developers includes a mix of leading international utilities, renewable energy companies, technology providers, and regional investors. Among the prominent names are EDF, Korea Electric Power Corporation (KEPCO), Marubeni, Masdar, and ACWA Power. Their participation highlights strong global interest in Saudi Arabia’s rapidly expanding energy storage market.
The battery storage programme forms an important part of Saudi Arabia’s broader energy transition strategy. By investing in large-scale energy storage, the country aims to improve the flexibility and reliability of its electricity network while enabling greater deployment of renewable energy. The initiative also supports Saudi Arabia’s long-term goals of modernizing its power sector, enhancing energy security, and building a more sustainable and resilient electricity system.
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