Saudi Arabia's Saudi Power Procurement Company has signed four Storage Service Agreements for the Kingdom's first group of Battery Energy Storage System projects, representing a combined investment exceeding SAR 4.35 billion.
The four projects – Al Muwyah and Haden in Makkah Region, Al Kahafa in Hail Region, and Al Khushaybi in Qassim Region – each carry a capacity of 500MW with a four-hour storage duration, delivering a combined 2,000MW and 8,000MWh of grid storage under a build-own-operate model.
Three projects were awarded to a consortium of Saudi Energy, ACWA Power, and Al Sharif Contracting, while Al Khushaybi went to a consortium of ENGIE and Haji Abdullah Alireza & Co, with 15-year Storage Service Agreements in place. The awards form part of a substantially larger programme: SPPC is already tendering a second group of six projects totalling 3,000MW and 12,000MWh, advancing Saudi Arabia's target of sourcing approximately 50% of electricity generation from renewables by 2030.
Gulf Economist Staff Writer