Saudi Energy and Engie Consortia Secure $1.16bn BESS Projects

The Saudi Power Procurement Company (SPPC) has signed four storage service agreements for the first group of Battery Energy Storage System (BESS) projects in Saudi Arabia. These agreements involve a combined investment of over SAR4.35 billion ($1.16 billion) and will deliver a total storage capacity of 2,000MW for four hours, equating to 8,000 MWh of energy storage capacity. The projects will be developed under the build-own-operate (BOO) model. A consortium comprising Saudi Energy, Acwa Power, and Al Sharif Contracting and Commercial Development Company has been awarded the contract to develop three 500 MW/4-hour BESS facilities, including the Al Muwyah BESS ISP in the Makkah Region. Additionally, the Al Khushaybi BESS ISP project in the Qassim Region, with a capacity of 500 MW for four hours, has been awarded to a consortium including French utility major Engie and Haji Abdullah Alireza & Company. The scope of these projects includes the development, financing, construction, ownership, operation, and maintenance of large-scale battery energy storage facilities. These facilities will store electricity for up to four hours and dispatch power as needed, supporting grid stability and improving operational flexibility. The agreements were signed in the presence of Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy. Supervised by the Ministry of Energy, these projects are part of Saudi Arabia’s broader program to expand energy storage infrastructure and integrate renewable energy into the national electricity system. The BESS facilities are expected to play a crucial role in achieving the Kingdom’s target of a 50% renewable energy mix by 2030, while meeting growing electricity demand and reducing reliance on conventional generation during peak demand periods.