The Saudi Power Procurement Company has finalized agreements for four major battery energy storage system projects, representing a total investment exceeding $1.16 billion. These initiatives, which feature a combined capacity of 2,000 MW and 8,000 MWh, are designed to enhance the integration of renewable energy into the national grid. By utilizing a build-own-operate model, the projects will provide critical operational flexibility and improve supply security. This development marks a significant step toward the Kingdom’s broader Vision 2030 goal of reaching 48 GWh of battery energy storage capacity by the end of the decade.
The contracts were awarded to two primary consortiums. A group consisting of ACWA Power, Saudi Energy, and Al Sharif Contracting and Commercial Development Company secured three of the projects, located in the Makkah and Hail regions. The fourth project, situated in the Qassim region, was awarded to a partnership between France’s Engie and Haji Abdullah Alireza & Co. Each of these large-scale facilities is rated at 500 MW and 2,000 MWh, operating under 15-year storage services agreements. The winning consortiums maintain full equity in the special purpose vehicles established to manage the development and operation of these assets.
This initial tender process, which began in November 2024, attracted significant interest from 33 prequalified companies. Building on this momentum, the Saudi Power Procurement Company has already initiated a second phase of expansion. Launched in April 2026, this subsequent tender includes six additional projects totaling 3 GW and 12 GWh of capacity. A list of 27 prequalified firms, including major international energy players like Masdar, TotalEnergies, EDF, and China Longyuan Power Group, has already been established for this next round of development as the nation continues to scale its renewable energy infrastructure.