The Saudi Power Procurement Company (SPPC) has begun the qualification process for its first group of battery energy storage system (BESS) projects. This initial batch consists of four projects, each with a total capacity of 500 megawatts (MW) and a storage duration of 4 hours, bringing the total capacity to 2,000 MW across all projects. The projects are located in different regions of Saudi Arabia, including Makkah, Qassim, and Hail provinces.
The four projects include the Al-Muwyah BESS site and the Haden BESS site, both in Makkah province. Each of these sites will have a 500MW/4Hrs capacity. The Al-Khushaybi BESS site is located in Qassim province, also with a 500MW/4Hrs capacity, while the Al-Kahafa BESS site is in Hail province, with the same 500MW/4Hrs capacity. These sites will be developed under a build-own-operate (BOO) model, where the successful bidder will own 100% of the equity in the special purpose vehicle (SPV) set up for each project.
Each SPV will be required to enter into a 15-year storage services agreement with SPPC. This agreement will define the terms and conditions for providing storage services to the national power grid. The new battery storage projects are part of Saudi Arabia’s strategy to enhance the power system’s reliability and resilience while supporting the country’s renewable energy targets.
These energy storage projects are expected to play a role in Saudi Arabia’s renewable energy strategy, which aims for 50% of the country’s energy to come from renewable sources by 2030. The battery storage systems will help ensure a more stable and reliable power supply, particularly as the country increases its reliance on renewable energy sources.
