Saudi Arabia has signed agreements for four battery energy storage projects with a total capacity of 2,000 megawatts and four hours of storage. The deals are worth more than SR4.35 billion, or $1.16 billion.
The Saudi Power Procurement Co., the Kingdom’s main buyer of electricity, signed the storage service agreements for the projects. According to the Saudi Press Agency, these are the first battery energy storage system projects to be developed under a build-own-operate model.
Together, the four projects will provide 8,000 megawatt-hours of energy storage and will be able to supply up to 2,000 MW of electricity for four hours. The projects are being developed under the supervision of the Ministry of Energy to improve the reliability and efficiency of the power system and increase its flexibility and ability to integrate renewable energy.
The projects also support Saudi Arabia’s Vision 2030 plans to expand power generation capacity while incorporating cleaner technologies, including carbon-capture-ready power generation.
“These projects aim to increase the capacity of renewable energy and energy storage systems within the energy mix to about 50% by 2030,” the SPA report stated.
The projects are expected to increase renewable energy and storage capacity to meet rising electricity demand. They are also expected to improve the reliability, efficiency and flexibility of the electricity system, strengthen the security of power supplies and support the Kingdom’s global leadership in the energy sector.
Three of the projects, each with a capacity of 500 MW and four hours of storage, will be located in the Makkah and Hail regions. The Al-Muwyah and Haden projects in Makkah, along with the Al-Kahafa project in Hail, were awarded to a consortium that includes Saudi Energy Co., Acwa and Al Sharif Contracting and Commercial Development Co.
The fourth project, the 500 MW Al-Khushaybi facility in the Qassim region, was awarded to a consortium that includes France’s Engie and Haji Abdullah Alireza & Co.
The Saudi Power Procurement Co. is responsible for conducting preliminary studies, inviting bids for power generation and energy storage projects, and signing power purchase and storage service agreements with developer groups.
