ACWA Power has signed three Storage Services Agreements with the Saudi Power Procurement Company (SPPC) to develop battery energy storage plants with a combined capacity of 6,000 MWh in Saudi Arabia. The agreements were signed on August 20, 2026, during a ceremony at the Ministry of Energy in Riyadh, attended by HRH Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy.
The agreements cover battery energy storage systems at Haden, Muwayh and AlKahfah. Each project will have a power capacity of 500 MW and storage capacity of 2,000 MWh. The three facilities will operate under 15-year agreements and will be capable of delivering electricity for up to four hours at full output.
Haden and Muwayh are located in the western region of Saudi Arabia, while AlKahfah is located in the northern part of the Kingdom. Together, the projects represent one of the largest battery energy storage procurements globally and strengthen ACWA Power’s position in the rapidly expanding energy storage sector.
The projects are expected to play an important role in supporting Saudi Arabia’s power system by storing electricity generated during periods of lower demand and releasing it when electricity consumption reaches peak levels. The deployment of large-scale batteries will also support the integration of renewable energy sources such as solar and wind into the national grid.
Omar Al Hassan, CEO – Saudi Arabia at ACWA Power, said energy storage has become an essential part of the Kingdom’s power system development. He noted that the new facilities would store energy produced during the day and supply it during periods of peak demand.
The tender was conducted by SPPC, which operates under the supervision of the Ministry of Energy and serves as Saudi Arabia’s principal electricity buyer. Treating storage as a standalone service could provide a model for future energy storage procurements as the Kingdom works toward its Vision 2030 objectives.
ACWA Power has already developed significant experience in large-scale energy storage. Its Tashkent Riverside project in Uzbekistan combines 770 MWh of battery storage with 200 MW of solar capacity. In Saudi Arabia, the Red Sea Project uses 1,227 MWh of battery storage to supply electricity without relying on the national grid.
ACWA currently holds 41 assets across Saudi Arabia covering solar, wind, gas, desalination and green hydrogen. The company has also been mandated by the Public Investment Fund to develop around 70% of the Kingdom’s renewable energy pipeline.
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