Saudi Arabia has signed a new round of grid-scale battery energy storage system (BESS) agreements worth more than SAR 4.35 billion (about USD 1.16 billion), a major step toward strengthening the reliability of the national power grid.
The agreements cover four grid-scale battery storage projects with a combined power capacity of 2,000 MW and a four-hour duration, equal to 8,000 MWh (8 GWh) of storage. They were awarded to consortia led by ACWA Power and Engie, alongside local partners, as the first group of independent BESS projects in the Kingdom.
Structured as 15-year storage service agreements under an independent power producer–style scheme, the projects will have the Saudi Power Procurement Company (SPPC) as the principal buyer, under the supervision of the Ministry of Energy. The headline value covers the capital investment for the four projects, with revenues recovered through long-term storage service payments across the 15-year term.
Why it matters
Battery storage lets the grid store surplus power and release it when demand peaks, supporting the integration of renewable energy and helping keep the electricity supply stable for homes and businesses. For residents in Riyadh, Jeddah and beyond, this translates into a more resilient power network as the Kingdom expands solar and wind generation.
The new deals build on a fast-growing national storage pipeline. This includes 12.5 GWh of grid-scale storage awarded in 2025 under a framework that brings total cooperation to 15.1 GWh, around 1,000 MW / 4 GWh of long-duration BESS contracts across Tabuk and Hail valued at over SAR 1.8 billion, a landmark 7.8 GWh project already connected to the grid, and a separate national tender for an additional 3 GW / 12 GWh. Together, the large-scale battery storage pipeline in the Kingdom now approaches almost 50 GWh.
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