SEPCO Secures 500 MW Battery Storage Project in Saudi Arabia

Shandong Electric Power Construction Corporation (SEPCO) has secured the Saudi Arabia Group 1-KSB Independent Battery Energy Storage System (BESS) project. This project is part of the Kingdom’s first wave of large-scale battery energy storage initiatives. Known as the Al Khushaybi Battery Energy Storage System, it has a planned capacity of 500 MW/2,000 MWh. The Saudi Power Procurement Company (SPPC) will be the offtaker for this project, which aims to enhance grid flexibility and support the integration of renewable energy into Saudi Arabia’s power system. The project developer consortium includes ENGIE and Haji Abdullah Alireza & Co., who previously signed an agreement for the Al Khushaybi BESS project. Upon completion, the facility will balance electricity supply and demand by storing energy during periods of lower demand and discharging it when demand increases. It is expected to improve grid stability, enhance the resilience of electricity supply, and support the integration of solar and wind power into the national grid. This project aligns with Saudi Arabia’s energy transition goals under Saudi Vision 2030, particularly in developing energy storage infrastructure to complement the Kingdom’s expanding renewable energy capacity.