The Saudi Power Procurement Company (SPPC), under the Ministry of Energy, has begun the qualification process for the first group of Battery Energy Storage System (BESS) projects. These initiatives aim to provide a total capacity of 8,000 MWh (2,000 MW over 4 hours) to boost Saudi Arabia’s renewable energy sector. The projects, each with a 500 MW/4-hour capacity, are located in Al-Muwyah and Haden in Makkah, Al-Khushaybi in Qassim, and Al-Kahafa in Hail.
Developed under a Build-Own-Operate (BOO) model, the successful bidder will have full ownership of the special purpose vehicle for each project. Managed through a 15-year Storage Services Agreement with SPPC, these projects aim to raise the renewable energy share in Saudi Arabia’s energy mix to 50% by 2030 and enhance the power system’s resilience and reliability.
This initiative positions Saudi Arabia as a leader in the MENA region’s energy storage sector. Recently, HiTHIUM Energy Storage announced plans for a battery manufacturing facility in the country, while Sungrow Power Supply Co., Ltd. secured agreements to further expand storage capacity. These efforts underscore Saudi Arabia’s commitment to sustainable energy development.
