Group Two BESS projects totaling 12,000MWh have entered competitive bidding as Saudi Arabia advances its $3.6 billion battery storage program. Saudi Power Procurement Company (SPPC) has issued requests for proposals covering six utility-scale facilities. The developments will collectively provide 3,000MW of battery storage capacity across several regions. The latest milestone moves the program closer to developer selection, financing and construction.
The RFP follows SPPC’s prequalification of 27 developers and technology providers in July 2026. The qualification stage established the pool of companies eligible to compete for the six projects. Now, bidders can prepare technical and commercial proposals under the formal procurement process.
The program supports Saudi Arabia’s wider plans to expand renewable generation and strengthen electricity infrastructure. Large-scale batteries can store surplus electricity and discharge it during periods of high demand. Consequently, the facilities will improve grid flexibility as renewable generation expands.
Group Two BESS Projects move into competitive bidding
SPPC launched the Group Two BESS projects as six Independent Storage Provider developments. Each facility will deliver 500MW and 2,000MWh of storage capacity. Together, they will provide 3,000MW and 12,000MWh across the program.
The projects include Samha in the Qassim Region and Al-Leeth in the Makkah Region. Al-Henakiyah will rise in the Madinah Region, while Khulis will also serve the Makkah Region. Sadawi will develop in the Eastern Province, while Ashyrah will serve another location within the Makkah Region.
Each facility will provide four hours of energy storage. This standard configuration will give grid operators consistent storage performance across the six developments.
SPPC will procure the projects under a Build-Own-Operate model. Successful developers will establish project companies and sign Storage Services Agreements with SPPC. These agreements will govern the long-term provision of storage services.
The latest RFP marks a major progression from the earlier qualification stage. SPPC can now evaluate detailed technical and commercial offers from eligible bidders.
Group Two BESS Projects strengthen Saudi electricity infrastructure
The projects will support Saudi Arabia’s rapidly expanding electricity network. Battery storage can absorb electricity when generation exceeds immediate demand. Operators can then release stored electricity when consumption rises.
Therefore, the facilities will provide additional flexibility for the national grid. They can also support renewable energy integration, reserve capacity and frequency regulation.
Saudi Arabia aims to generate around 50% of its electricity from renewable sources by 2030. Solar and wind generation can fluctuate according to weather and daylight conditions. Battery storage can help manage these variations and maintain reliable electricity supply.
The projects will also create construction opportunities across several infrastructure segments. Developers will require battery systems, substations, transformers and transmission connections. They will also need control systems, civil works and commissioning services.
The projects follow Saudi Arabia’s latest $1.16 billion Group One BESS projects, where various consortia secured contracts for four facilities totaling 2,000MW and 8,000MWh. The Group One awards demonstrate the Kingdom’s accelerating transition from battery storage procurement to project delivery, strengthening the pipeline for the larger Group Two program.
The latest RFP means the program has progressed beyond developer qualification. It now moves into competitive bidding, bringing the six projects closer to construction.
Group Two BESS Projects approach developer selection
The prequalified participants include major international and regional energy companies. These include ACWA Power, Masdar, EDF, Marubeni, PowerChina and Sumitomo Corporation.
Other qualified participants include Alfanar, KEPCO, TotalEnergies Renewables and Envision Energy. Tesla Motors Netherlands also qualified for the procurement process.
However, SPPC has not yet selected the winning developers for the six projects. The current bidding phase will determine which consortiums secure development rights.
The successful bidders will subsequently advance project financing and detailed development. They will also move toward engineering, procurement and construction arrangements.
The projects therefore represent an important step in Saudi Arabia’s expanding battery storage pipeline. Their combined scale will add substantial dispatchable storage capacity to the national electricity system.
Further contract awards will determine the companies responsible for delivering individual facilities. The announcements will also clarify EPC contractors, technology suppliers and construction schedules.
For now, the RFP issuance confirms that Saudi Arabia has moved Group Two BESS Projects into active competitive procurement. The next major milestone will come with developer selection and contract awards.
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.
The 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
Name: Group Two BESS Projects
Program value: Approximately $3.6 billion
Country: Saudi Arabia
Project type: Utility-scale Battery Energy Storage Systems
Number of projects: Six
Total power capacity: 3,000MW
Total storage capacity: 12,000MWh
Capacity per project: 500MW
Storage capacity per project: 2,000MWh
Storage duration: Four hours
Procurement authority: Saudi Power Procurement Company
Supervising authority: Saudi Ministry of Energy
Procurement structure: Independent Storage Provider
Commercial model: Build-Own-Operate
Contract structure: Storage Services Agreements
Qualified participants: 27 developers and technology providers
Current stage: Competitive bidding
RFP status: Issued
Project regions: Makkah, Madinah, Qassim and Eastern Province
Primary objective: Grid-scale electricity storage
Strategic objective: Support renewable energy integration
Next milestone: Selection of successful developers
Subsequent stages: Financing, engineering, construction and commissioning
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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