Group 2 Battery Storage projects have reached a major procurement milestone after Saudi Arabia prequalified 27 developers and technology providers to compete for six utility-scale battery energy storage facilities. The estimated $3.6 billion program will strengthen the Kingdom’s electricity infrastructure while supporting renewable energy integration. Moreover, the projects will expand grid flexibility, improve power reliability, and accelerate Saudi Arabia’s transition towards a cleaner energy mix under Vision 2030. The qualification also opens the next phase before competitive bidding and eventual construction begins.
The Saudi Power Procurement Company (SPPC), acting as the Principal Buyer under the Ministry of Energy, announced the qualified applicants on July 1. The programme covers six Independent Storage Provider (ISP) projects with a combined capacity of 3,000MW and 12,000MWh. Each facility will provide 500MW and 2,000MWh of four-hour battery storage under a Build-Own-Operate (BOO) delivery model.
Construction will take place across six strategic locations. These include Samha in Qassim, Al-Leeth, Khulis and Ashyrah in Makkah, Al-Henakiyah in Madinah, and Sadawi in the Eastern Province. Consequently, the programme will reinforce transmission infrastructure across several regions while balancing renewable electricity supply.
Group 2 Battery Storage Projects move towards construction
The qualification round attracted leading international utilities, renewable developers, engineering firms, battery manufacturers, and regional investors. Therefore, the competition reflects growing confidence in Saudi Arabia’s expanding energy infrastructure market.
Among the prequalified participants are Masdar, ACWA Power, Alfanar, EDF, Korea Electric Power Corporation, Marubeni Corporation, PowerChina, Sumitomo Corporation, TotalEnergies Renewables, Tesla Motors Netherlands, Envision Energy, China Longyuan Power Group, Saudi Energy Company, and WahajPeak Holdings. Several additional regional companies also secured qualification.
Winning consortiums will establish special purpose vehicles for each development. They will also sign long-term Storage Services Agreements with SPPC before commencing engineering, procurement, construction, commissioning, and commercial operations. Furthermore, the BOO model encourages long-term private investment while maintaining reliable electricity storage services.
The projects will create opportunities across civil works, electrical engineering, substations, battery installation, transmission connections, testing, and grid integration. As a result, contractors, equipment suppliers, and specialist engineering firms can expect increased demand throughout project delivery.
Group 2 Battery Storage Projects strengthen renewable infrastructure
Battery storage has become essential as Saudi Arabia rapidly expands solar and wind generation. Unlike conventional generation, renewable electricity requires flexible storage to maintain grid stability during fluctuating demand. Therefore, utility-scale battery systems now form a critical part of national power infrastructure.
Each project will store excess renewable electricity during periods of lower demand. The facilities will then discharge stored energy during peak consumption. Consequently, they will improve frequency regulation, reserve capacity, voltage support, and network resilience while reducing renewable energy curtailment.
The programme also advances Saudi Arabia’s National Renewable Energy Program. The Kingdom aims to generate around 50% of its electricity from renewable sources by 2030. Large-scale battery storage will help achieve that target while supporting long-term energy security and economic diversification.
Although SPPC has not released the final bidding timetable, the qualification process significantly narrows the competitive field. The next procurement stages will include bid submissions, contract awards, financial close, and construction mobilisation. Once completed, the six projects will rank among the world’s largest coordinated battery energy storage programmes and strengthen Saudi Arabia’s position as a regional leader in clean energy infrastructure.
The latest procurement builds on Saudi Arabia’s rapidly expanding battery storage programme. It follows earlier landmark developments, including the World’s Largest BESS Project in Saudi Arabia (8GWh Battery Storage), which demonstrated the Kingdom’s commitment to deploying utility-scale storage to support renewable integration and grid stability. Together, the projects reinforce Saudi Arabia’s strategy of creating one of the world’s largest battery energy storage portfolios while accelerating the delivery of Vision 2030 energy infrastructure.
Project Fact Sheet
Project name: Group 2 Battery Energy Storage Projects
Country: Saudi Arabia
Estimated investment: $3.6 billion
Project type: Utility-scale Battery Energy Storage System (BESS)
Procurement model: Independent Storage Provider (ISP)
Delivery model: Build-Own-Operate (BOO)
Project owner: Saudi Power Procurement Company (SPPC)
Supervising authority: Ministry of Energy
Total generating capacity: 3,000MW
Total storage capacity: 12,000MWh
Number of projects: Six
Capacity per project: 500MW / 2,000MWh
Storage duration: Four hours
Current stage: Developers and technology providers prequalified
Future stages: Tendering, contract awards, financial close, construction, commissioning
Project locations:
- Samha – Qassim Region
- Al-Leeth – Makkah Region
- Khulis – Makkah Region
- Ashyrah – Makkah Region
- Al-Henakiyah – Madinah Region
- Sadawi – Eastern Province
Strategic objective:
- Increase grid flexibility
- Support renewable energy integration
- Improve electricity reliability
- Enhance national energy security
- Advance Saudi Vision 2030
- Support the National Renewable Energy Program
Project Team
Project owner: Saudi Power Procurement Company (SPPC)
Supervising authority: Saudi Ministry of Energy
Procurement authority: SPPC Principal Buyer
Delivery structure: Independent Storage Provider (ISP)
Commercial model: Build-Own-Operate (BOO)
Project companies: Special Purpose Vehicles established by winning bidders
Qualified developers and technology providers:
- Abu Dhabi Future Energy Company (Masdar)
- ACWA Power Company
- Al Jomaih Energy and Water Company
- Alfanar Company
- China Longyuan Power Group Corporation
- China Southern Power Grid International (HK)
- Cox Energy EPC
- Electricité de France (EDF)
- Envision Energy
- Grupo Empresarial Enhol
- Hefei Gotion High-Tech Power Energy
- International Power S.A.
- Korea Electric Power Corporation (KEPCO)
- Korea Western Power
- Marubeni Corporation
- Nesma Renewable Energy
- Nextgen Co. Ltd.
- Power Construction Corporation of China (POWERCHINA)
- Pro-Power Investment Limited
- Saudi Energy Company
- SPIC Shanghai Electric Power
- Sumitomo Corporation
- Tesla Motors Netherlands B.V.
- TNB Power Generation
- TNB Renewables
- TotalEnergies Renewables
- WahajPeak Holdings Limited
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