Saudi Arabia’s SPPC Launches Battery Energy Storage Projects
The Saudi Power Procurement Company (SPPC) has initiated the qualification process for its inaugural batch of Battery Energy Storage System (BESS) projects. These projects aim to provide a total capacity of 2000 megawatts (MW) with a discharge duration of 4 hours.
Four projects have been identified for this phase:
- Al-Muwyah BESS in Makkah province (500MW/4Hrs)
- Haden BESS in Makkah province (500MW/4Hrs)
- Al-Khushaybi BESS in Qassim province (500MW/4Hrs)
- Al-Kahafa BESS in Hail province (500MW/4Hrs)
These projects will operate under a Build-Own-Operate (BOO) model, allowing the successful bidder to hold full equity in the special purpose vehicle (SPV) created for project development and operation.
Each SPV will enter into a 15-year storage services agreement with the SPPC. This initiative supports Saudi Arabia’s renewable energy ambitions, targeting 50% renewable energy by 2030, while improving the power system’s reliability and resilience.
