Saudi Energy and Engie Consortiums Secure $1.16bn BESS Contract

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 projects represent a combined investment of over SAR4.35 billion ($1.16 billion). The four projects will collectively deliver a storage capacity of 2,000 MW for four hours, equivalent to 8,000 MWh of energy storage capacity, under the build-own-operate 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 of French utility major Engie and Haji Abdullah Alireza & Company. The projects aim to support grid stability, improve operational flexibility, and enhance the security and reliability of electricity supply across the Kingdom. These initiatives are part of Saudi Arabia's broader program to expand energy storage infrastructure and integrate renewable energy into the national electricity system, with a target of achieving approximately 50% renewable energy by 2030.