The Saudi Power Procurement Company (SPPC), under the guidance of the Ministry of Energy, has initiated the qualification phase for the Kingdom’s first Battery Energy Storage System (BESS) projects, aiming to enhance grid stability and support renewable energy integration. This first batch consists of four projects, each to be developed under a Build-Own-Operate (BOO) model, with the successful bidder holding full equity in the Independent Storage Provider (ISP) project.
The Group 1 BESS projects, totaling a storage capacity of 2000 MW for four hours (8000 MWh), include:
- Al-Muwyah BESS ISP – 500 MW/4 Hrs | Location: Makkah Province
- Haden BESS ISP – 500 MW/4 Hrs | Location: Makkah Province
- Al-Khushaybi BESS ISP – 500 MW/4 Hrs | Location: Qassim Province
- Al-Kahafa BESS ISP – 500 MW/4 Hrs | Location: Hail Province
Each special purpose vehicle (SPV) will engage in a 15-year Storage Services Agreement with SPPC, marking a milestone in Saudi Arabia’s strategy to meet its target of 50% renewable energy in its energy mix by 2030. This initiative not only supports sustainable energy goals but also aims to improve the reliability and resilience of the Kingdom’s power system.
