SPPC awards storage agreements for four 500-MW battery projects totalling 2,000 MW

1 Sep 2026 · Infrastructure

StatusReported by Industrial Info Resources; awards described as made, with terms not published.

The Saudi Power Procurement Company (SPPC), the principal energy buyer for Saudi Arabia, has awarded storage service agreements for four battery energy storage system (BESS) projects with a combined capacity of 2,000 megawatts (MW) of storage and 8,000 megawatt-hours (MWh) of power supply. The report, written by Martin Lynch, European News Editor for IIR News Intelligence, was released Friday, August 28, 2026. The four schemes are the winners of the country's first round of BESS project awards, a process that began early the previous year.

The 500-MW Al-Khushaybi project in Al-Qassim province will be developed by a consortium of Engie and Haji Abdullah Ali Reza & Co Ltd. The remaining three — the 500-MW Haden and Al-Muwyah projects in Makkah province and the 500-MW Al-Kahafa project in Hail province — will be developed by a consortium of Saudi Electricity Company, ACWA Power and Al Sharif Contracting and Commercial Development Company.

The projects are supervised by the Ministry of Energy and form part of the first group of BESS projects under the build-own-operate (BOO) model. According to the article, they contribute to efforts to strengthen the reliability and efficiency of electricity generation in the Kingdom.

"Energy storage systems have become an essential part of how the Kingdom is developing its power system, rather than simply an addition that comes after renewable energy projects are in place. These plants will hold energy generated through the day and release it when demand reaches its peak," said Omar Al Hassan, chief executive officer, Saudi Arabia, at ACWA.

A second group is already moving. In May, Industrial Info Resources reported the launch of the qualification process for Saudi Arabia's second group of BESS projects, comprising six independent storage projects with a combined capacity of 3,000 MW and 12,000 MWh of power delivery over four hours. These too will be developed under a build-own-operate model, with successful developers holding full ownership in the project special purpose vehicles (SPVs).

Industrial Info Resources data counts 17 active BESS projects in Saudi Arabia worth more than US$14.5 billion in investment. The Kingdom announced last year that it will deploy 48 gigawatt-hours (GWh) of BESS capacity by 2030. Alongside solar and wind, storage is described as key to reaching an electricity mix of approximately 50% renewable energy by 2030 — a combined 130 GW of capacity — from a standing start of virtually zero in 2018.

The article frames the award as confirmation that Saudi Arabia is one of the busiest markets for battery energy storage systems outside China.

Why this mattersTwo of the four awarded plants — Haden and Al-Muwyah, at 500 MW each — sit in Makkah province, the grid region that also serves Madinah's hospitality and residential pipeline, so the most direct read for projects here is firmer evening-peak supply during high-occupancy seasons. In our assessment, that should over time reduce how much standby generation and fuel storage a hotel or mixed-use scheme needs to carry to satisfy operator brand standards, which is a real line in cost per key and in plant-room area. The consortia named — Saudi Electricity Company, ACWA Power, Engie, Haji Abdullah Ali Reza, Al Sharif Contracting — define the pool of counterparties and EPC partners that will be busy in the western region, and are worth tracking for any client considering on-site storage or a private PPA. The second-round qualification for 3,000 MW is the deadline to diarise if a developer wants exposure to the BOO/SPV structure rather than only buying the resulting power.

Key figures2,000 MW storage · 8,000 MWh supply · 4 × 500 MW projects · 17 active BESS projects · >US$14.5bn investment · round two: 6 projects, 3,000 MW / 12,000 MWh over 4 hours · 48 GWh by 2030 · ≈50% renewables by 2030 · 130 GW combined · released August 28, 2026

Source: Industrialinfo

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