24/08/2026 03:32 AST
Saudi Arabia signed agreements for four battery energy storage projects with a combined capacity of 2,000 megawatts and four-hour storage duration, in deals worth more than SR4.35 billion ($1.16 billion).
The Saudi Power Procurement Co., the Kingdom's principal buyer, signed the storage service agreements for the projects, which are the first batch of battery energy storage system initiatives to be developed under a build-own-operate model, the Saudi Press Agency reported.
The four facilities will provide a combined 8,000 megawatt-hours of storage capacity, allowing them to deliver up to 2,000 MW for four hours. The projects, being developed under the supervision of the Ministry of Energy, are intended to improve the reliability and efficiency of the electricity system while increasing its flexibility and ability to integrate renewable energy.
This development aligns with Saudi Arabia's Vision 2030 goals to expand power generation capacity while incorporating cleaner technologies, including carbon-capture-ready power generation.
"These projects aim to increase the capacities of renewable energy and energy storage systems within the energy mix to reach about 50 percent by 2030," the SPA report stated.
The projects are expected to expand renewable energy and storage capacity in line with electricity demand growth, "which contributes to enhancing the reliability and efficiency of the electrical system, and raising its operational flexibility," it added. This will support the security of electricity supply and the Kingdom's global leadership in energy.
Projects span three regions
Three of the initiatives, each rated at 500 MW with four hours of storage, are located in the Makkah and Hail regions. The Al-Muwyah and Haden facilities in Makkah, along with the Al-Kahafa project in Hail, were awarded to a consortium comprising 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, went to a consortium comprising France's Engie and Haji Abdullah Alireza & Co.
The Saudi Power Procurement Co. is responsible for conducting preliminary studies, tendering power-generation and energy-storage projects, and signing power-purchase and storage-service agreements with developer consortia.
Renewable energy push
In April, Acwa and Saudi Energy Co. signed a 31-year power purchase agreement with the Saudi Power Procurement Co. for the Rabigh 2 Independent Power Producer Expansion project.
In a Tadawul statement, Acwa and Saudi Energy said that the agreement, valued at SR11.5 billion ($3.07 billion), includes the development, financing, construction, ownership and operation of a large-scale combined-cycle gas turbine power plant with a generation capacity of 2,313.5 MW.
In December, Acwa completed the refinancing of the Rabigh 3 Independent Water Project, a desalination project in the western region of the Kingdom.
Highlighting its progress in the renewable energy sector, Acwa commenced commercial operations at three solar power plants in Saudi Arabia in August 2025, with a combined capacity of 2.79 GW.
Arab News
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