Saudi Arabia Awards Contracts for Battery Energy Storage Systems

The Saudi Arabia Power Procurement Company (SPPC) has signed agreements for the first group of battery energy storage system (BESS) projects in the country. These projects represent a total investment exceeding $1.16 billion and have a combined capacity of 2,000 MW/8,000 MWh, with a four-hour storage duration. The projects will involve development, financing, construction, ownership, operation, and maintenance under the build-own-operate model.

The awarded projects include the Al Muwyah, Haden, and Al Kahafa BESS, each with a capacity of 500 MW/2,000 MWh. These projects have been awarded to a consortium comprising Saudi Energy, ACWA Power, and Al Sharif. Additionally, the Al Khushaybi BESS, also with a capacity of 500 MW/2,000 MWh, has been awarded to a consortium of ENGIE and Haji Abdullah Alireza.

In July 2026, SPPC announced qualified applicants for its second group of BESS projects, which have a combined capacity of 3,000 MW/12,000 MWh. These projects will be spread across Saudi Arabia and include facilities such as Samha, Al-Leeth, Al-Henakiyah, Khulis, Sadawi, and Ashyrah BESS. Successful bidders will establish special purpose vehicles and sign long-term storage services agreements with SPPC.

For a developer: The awarding of these contracts marks a significant step in Saudi Arabia's commitment to expanding its renewable energy infrastructure. The projects not only highlight the country's focus on sustainable energy solutions but also present substantial opportunities for developers and investors in the renewable energy sector.

Key figures: Total investment exceeds $1.16 billion; combined capacity of 2,000 MW/8,000 MWh.