Saudi Arabia Signs SAR 4.4bn Battery Storage Deals

The Saudi company in charge of power purchases has signed four agreements to develop battery energy storage projects across the Kingdom, with a combined value of more than SAR 4.35 billion, rounded to SAR 4.4 billion. Together the projects will provide 2,000 megawatts of storage capacity for four hours.

The four projects are Al Muwyah and Haden in Makkah Province, Al Kahfah in Hail Province, and Al Khushaybi in Qassim Province. The first three were signed with a consortium of Saudi Energy Co., ACWA Power, and Al Sharif Contracting Co., while Al Khushaybi was awarded to a consortium of ENGIE and Haji Abdullah Ali Reda and Partners Co. Ltd.

All four sites will be delivered under a build-own-operate model, with the developers signing 15-year storage services agreements. The battery systems are designed to strengthen the flexibility and reliability of the national grid, storing electricity and releasing it when demand peaks.

The agreements are part of a wider push to expand energy storage in the Kingdom. A related second group of projects was opened for qualification in April 2026, covering six projects of 500 MW and 2,000 MWh each, for a combined total of 3 gigawatts and 12 gigawatt-hours.

Why it matters

For residents in Riyadh, Jeddah, and other cities, large-scale battery storage helps smooth the supply of electricity, support the integration of renewable energy, and improve the stability of power during periods of high demand. The projects mark another step toward a more flexible and sustainable national power system.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving