Group One BESS projects worth $1.16 billion are advancing after Saudi Arabia awarded four utility-scale battery storage contracts across strategic regions. The projects will deliver 2,000MW of combined power capacity and 8,000MWh of energy storage. Saudi Power Procurement Company signed four Storage Services Agreements with the successful development consortiums. The program represents another major construction milestone for Saudi Arabia’s expanding electricity infrastructure.
The four battery projects will strengthen grid flexibility while supporting renewable energy integration nationwide. Each project will provide 500MW of power and four-hour storage capacity. Together, the facilities will store enough electricity to deliver 8,000MWh across the national grid. The agreements establish long-term private sector participation through Saudi Arabia’s build-own-operate procurement model.
Saudi Arabia continues accelerating large-scale battery construction under its national energy transformation strategy. Consequently, these projects move beyond procurement and into the development phase across Makkah, Hail and Qassim regions. The awards also reinforce the Kingdom’s growing commitment toward reliable renewable electricity infrastructure.
Group One BESS Projects: The four strategic battery developments
The first development package includes three utility-scale battery storage projects across western and northern Saudi Arabia. Saudi Energy, ACWA Power and Al Sharif Contracting and Commercial Development Company secured the contracts jointly. Their consortium will develop Al Muwyah, Haden and Al Kahafa Battery Energy Storage System projects.
Al Muwyah BESS will rise within the Makkah Region with 500MW capacity and four-hour storage. Meanwhile, Haden BESS will provide identical capacity within the same region. Both projects will strengthen electricity infrastructure serving western Saudi Arabia’s rapidly growing demand centers.
Al Kahafa BESS will introduce another 500MW battery storage facility within the Hail Region. Therefore, the three-project package will collectively contribute 1,500MW of installed battery capacity. Together, they will provide 6,000MWh of electricity storage under identical technical specifications.
The fourth contract covers Al Khushaybi BESS in Saudi Arabia’s Qassim Region. ENGIE partnered with Haji Abdullah Alireza & Co. Ltd. to secure this development. The facility will also deliver 500MW capacity alongside 2,000MWh of four-hour electricity storage.
Each consortium will develop its respective project under the agreed Storage Services Agreements with SPPC. However, authorities have not announced engineering, procurement and construction contractors. They have also not disclosed battery technology suppliers for the four developments.
Group One BESS Projects strengthen renewable electricity infrastructure
Group One BESS projects will play an increasingly important role within the Kingdom’s evolving electricity network. Battery storage allows operators to capture electricity during surplus generation periods. The systems can subsequently dispatch stored power during peak demand periods.
As renewable generation expands, grid operators require flexible storage infrastructure to maintain system reliability. Therefore, utility-scale batteries complement solar and wind projects across Saudi Arabia’s electricity network. The four awarded facilities will provide additional operational flexibility without generating electricity themselves.
Saudi Arabia launched the first qualification process for these projects during November 2024. SPPC later issued Requests for Proposals to qualified developers during February 2025. The procurement process eventually produced four successful development awards announced this August.
The projects form Group One of Saudi Arabia’s ambitious battery energy storage program. Meanwhile, SPPC has already progressed preparations for Group Two developments. That second program will introduce six additional battery projects totaling 3,000MW and 12,000MWh capacity.
This expanding pipeline demonstrates Saudi Arabia’s commitment toward building extensive grid-scale energy storage infrastructure. Furthermore, future battery developments will support greater renewable deployment across multiple regions. The program also creates significant construction opportunities involving electrical infrastructure and grid connection works.
The projects move construction pipeline beyond procurement
The latest agreements signal the transition from competitive procurement toward project implementation across four locations. Developers can now advance detailed planning, financing and construction preparations under their contractual obligations. The build-own-operate structure places long-term development responsibilities on the successful consortiums.
Importantly, every facility carries identical technical capacity despite serving different geographical regions. This standardized approach could streamline project delivery and operational integration within Saudi Arabia’s electricity network. It also provides SPPC with consistent four-hour battery storage services across multiple strategic locations.
The awards arrive as Saudi Arabia continues expanding renewable generation and transmission infrastructure simultaneously. Battery storage now represents a central component within national electricity planning rather than supporting infrastructure alone. Consequently, the four projects strengthen the Kingdom’s broader strategy for developing resilient and flexible power systems.
With contracts now secured, industry attention will shift toward construction mobilization and detailed project execution. Future announcements may identify EPC contractors, equipment suppliers and commissioning schedules for individual facilities. Until then, the four BESS projects remain among the Kingdom’s largest newly awarded battery storage developments.
Project Fact Sheet
Name: Saudi Arabia Group One Battery Energy Storage System Projects
Total project value: $1.16 billion
Procuring entity: Saudi Power Procurement Company (SPPC)
Project model: Build-Own-Operate (BOO)
Contract arrangement: Four Storage Services Agreements
Total installed capacity: 2,000MW
Total energy storage capacity: 8,000MWh
Storage duration: Four hours per project
Number of projects: Four utility-scale BESS facilities
Project locations: Makkah Region, Hail Region and Qassim Region
Al Muwyah BESS: 500MW / 2,000MWh
Haden BESS: 500MW / 2,000MWh
Al Kahafa BESS: 500MW / 2,000MWh
Al Khushaybi BESS: 500MW / 2,000MWh
Primary objective: Strengthen grid flexibility and electricity reliability
Strategic role: Support renewable energy integration across Saudi Arabia
Current stage: Development contracts awarded for project advancement
Project Team
Principal buyer and contracting authority: Saudi Power Procurement Company (SPPC)
Government authority: Saudi Ministry of Energy
Consortia:
Al Muwyah, Haden and Al Kahafa BESS projects: Saudi Energy
Delivering three awarded battery storage developments: ACWA Power
The three-project development package: Al Sharif Contracting and Commercial Development Company
Al Khushaybi Battery Energy Storage System project:
- ENGIE
- Haji Abdullah Alireza & Co. Ltd.:
Operations and maintenance structure: Managed under consortium obligations within the BOO project framework.
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