Principal Buyer signs 4 battery storage deals worth SAR 4.4B

The signing of the agreement

The Saudi Power Procurement Co. (Principal Buyer), signed four agreements for battery energy storage projects with a combined capacity of 2,000 MW for four hours, representing investments of more than SAR 4.35 billion ($1.16 billion).

According to a ministerial statement, the projects, overseen by the Ministry of Energy, are part of the first batch of energy storage projects under a build-own-operate (BOO) model and support the energy sector’s efforts to enhance the reliability and efficiency of electricity generation in the Kingdom.

The first batch includes the Muwayh and Haden projects in Makkah and the Al Kahfah project in Hail. Each project has a capacity of 500 MW for four hours.

The agreements for the three projects were signed with a consortium comprising Saudi Energy Co., ACWA Power Co., and Al Sharif Contracting Co.

Al Khushaybi project in Qassim, which also has a capacity of 500 MW for four hours, was awarded to a consortium comprising ENGIE and Haj Abdullah Ali Reda and Partners Co. Ltd.

These projects aim to increase the share of renewable energy and energy storage systems in the Kingdom’s energy mix to around 50% by 2030, in line with electricity demand growth.

They are also expected to enhance the reliability and efficiency of the power system, improve its operational flexibility, support electricity supply security, and strengthen the Kingdom’s position as a global leader in the energy sector.

Principal Buyer is responsible for conducting preliminary studies, tendering power generation and energy storage projects, and signing power purchase agreements and energy storage service agreements with developer consortia.