Saudi Arabia has signed four battery energy storage system (BESS) service agreements as part of the first group of national storage projects, the Saudi Power Procurement Company confirmed in August 2026. The deals cover a combined installed capacity of 2,000 megawatts (2 GW) for four hours, equal to 8,000 megawatt-hours of storage.
The four projects carry a total investment of more than SAR 4.35 billion (about USD 1.16 billion) and are being developed under a build–own–operate model. Each project company has signed a 15-year Storage Services Agreement, during which developers receive availability-based payments from the Saudi Power Procurement Company.
Each of the four sites has a capacity of 500 MW with a four-hour duration. The projects are Al-Muwyah and Haden in the Makkah Region, Al-Kahafa in the Hail Region, and Al-Khushaybi in the Qassim Region. Al-Muwyah, Haden, and Al-Kahafa were awarded to a consortium of Saudi Energy Company, ACWA Power, and Al-Sharif Group, while Al-Khushaybi went to a consortium of ENGIE and Haj Abdullah Ali Reza & Co. Ltd.
Why it matters
These four projects form "Group 1" of the Kingdom's national storage program. A "Group 2" is already under way, featuring six additional BESS projects, each with 500 MW / 2,000 MWh capacity, also under an independent storage provider build–own–operate model. Indicative Group 2 sites include Samha in the Qassim Region.
The storage push supports the Kingdom's goal of raising renewable energy and storage to roughly 50% of the power mix by 2030, keeping pace with rising electricity demand. For residents, large-scale storage means a more stable and reliable power supply, helping smooth peaks in demand and integrate more clean energy into the grid.
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