Saudi Arabia Signs Four BESS Agreements Worth SAR 4.35 Billion For 2,000 MW Storage Capacity

Saudi Arabia has signed four major Battery Energy Storage System (BESS) agreements as part of its efforts to strengthen the national electricity network and accelerate the integration of renewable energy. The agreements were signed by the Saudi Power Procurement Company (SPPC), the Kingdom’s Principal Buyer, during a ceremony attended by Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, along with senior officials from the Ministry of Industry and Mineral Resources and SPPC.

The projects represent the first group of large-scale energy storage developments aimed at supporting Saudi Arabia’s transition toward a more sustainable electricity generation mix. The initiative is aligned with the Kingdom’s target of generating around 50% of its electricity from renewable energy sources by 2030.

The four BESS projects involve a total investment of more than SAR 4.35 billion. Collectively, they will provide 2,000 MW of energy storage capacity with a four-hour duration, helping improve grid flexibility, reliability and the effective utilization of renewable power.

The projects are located across three regions. The Makkah Region will host the Al Muwyah BESS Independent System Provider (ISP) and Haden BESS ISP projects. The Al Kahafa BESS ISP project will be developed in the Hail Region, while the Al Khushaybi BESS ISP project will be located in the Qassim Region.

Several major energy and engineering companies are participating in the agreements. These include Saudi Electricity Company (SE), ACWA Power, Al Sharif Contracting (ASC), ENGIE, and Haji Abdullah Alireza & Co. Ltd., alongside SPPC.

The agreements highlight Saudi Arabia’s growing focus on large-scale energy storage as a critical component of its renewable energy strategy. By deploying BESS facilities across strategically important regions, the Kingdom aims to enhance grid stability, manage renewable generation more effectively and support the modernization of its power infrastructure.

The projects are expected to play an important role in enabling higher levels of renewable energy integration while strengthening the reliability and resilience of Saudi Arabia’s electricity system.