SAR 4.35 bn in battery storage deals

Renewables rollout: The Saudi Power Procurement Company (Principal Buyer) has signed four storage service agreements for battery energy storage system projects with a combined capacity of 2 GW over four hours, involving investments of more than SAR 4.35 bn, the Ministry of Energy said on X.

What it covers: The first group comprises the 500 MW Al Muwyah and Haden projects in Makkah and the 500 MW Al Kahafa project in Hail. The three projects were awarded to a consortium of Saudi Energy, Acwa Power, and Al Sharif Contracting and Commercial Development. The 500 MW Al Khushaybi project in Qassim was awarded to a consortium comprising Engie and Haji Abdullah Alireza & Co.

Why it matters: These projects are part of the first group of BESS projects under the build-own-operate model. The Kingdom aims to generate 50% of electricity from renewable sources by 2030. It has also set a goal of reaching 130 GW of renewable energy capacity by the end of the decade. The total capacity of renewable energy projects that entered operation reached 6.6 GW by the end of 2024, including 6.2 GW of solar and 400 MW of wind, while investments in operating renewable projects stood at around SAR 19.8 bn, according to Gastat data.