ARTIFEX NEWS

Acwa Power and SPPC Sign 6,000MWh BESS Projects Deal in Saudi Arabia

· Infrastructure
StatusConfirmed by Acwa Power.

Acwa Power has signed agreements with the Saudi Power Procurement Company (SPPC) for a combined 6,000MWh of Battery Energy Storage System (BESS) projects at three sites in Saudi Arabia. The facilities will be built at Haden, Muwayh, and AlKahfah, representing one of the largest BESS procurements globally. Each plant is rated at 500MW/2,000MWh and will supply power under a 15-year agreement. Haden and Muwayh are located in the western region of the kingdom, while AlKahfah is in the north. At full output, each facility will provide four hours of battery storage. The tender for the systems was conducted by the SPPC, which is overseen by the Saudi energy ministry as the principal buyer of electricity in the kingdom. Omar Al Hassan, Acwa’s Saudi Arabia CEO, emphasized the importance of energy storage systems in the kingdom's power system development. Saudi Arabia has seen increasing commercial interest in energy storage projects, with companies like ZOE Energy Storage and BYD involved in significant BESS developments.

Why this mattersThis agreement signifies a major advancement in energy storage infrastructure in Saudi Arabia, which could influence future energy projects in Madinah. The development of BESS facilities may lead to increased opportunities for local contractors and consultants specializing in energy systems. Additionally, this could set a benchmark for energy storage projects, impacting cost structures and feasibility studies in the region.
Key figures6,000MWh · 500MW/2,000MWh per plant · 15-year agreement
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