Saudi Arabia is set to launch its first independent battery energy storage system (BESS) projects with a total capacity of 2GW. The Saudi Power Procurement Company (SPPC) has invited prequalified firms to bid for these projects, which will operate on a build, own, and operate (BOO) model.
The initial phase includes four major projects, each with a capacity of 500MW:
- Al-Muwyah BESS ISP in Mecca
- Haden BESS ISP in Mecca
- Al-Khushaybi BESS ISP in Qassim
- Al-Kahafa BESS ISP in Hail
A bidders conference is scheduled for 17 February, followed by site visits. SPPC aims to receive letters of intention by April and proposals by 2 June.
Twenty-one companies have been prequalified to manage or provide technical expertise for these contracts. Notable firms include Masdar and Taqa from the UAE, Acwa Power from Saudi Arabia, and EDF from France. Potential technical partners include local companies such as Al-Gihaz Holding and FAS Energy, as well as international firms like Posco International from South Korea.
Successful bidders will own 100% equity in the special purpose vehicles formed to develop and operate each project, entering into a 15-year storage services agreement with SPPC.
This energy storage initiative is part of Saudi Arabia’s strategy to ensure that 50% of its energy mix comes from renewable sources by 2030. The projects are designed to enhance the reliability of the power system and are strategically located near demand centers to support the integration of renewable energy.
SPPC plans to expand its BESS capacity to 10,000MW by 2030, with Synergy Consulting advising on the procurement process. BESS technology is crucial for storing and discharging energy from renewable sources, addressing their intermittency and supporting grid stability.
