Saudi Arabia signs major battery storage deals to boost renewable energy targets

Saudi Minister of Energy and Minister of Industry and Mineral Resources, Abdulaziz bin Salman bin Abdulaziz, who also chairs the board of the Saudi Power Procurement Company, attended the signing of four battery energy storage project agreements in Riyadh. The projects have a combined capacity of 2,000 megawatts for four hours each.

The company stated that investments in these projects exceed 4.35 billion riyals (SAR 4.35 billion, or $1.16 billion), under the supervision of the Ministry of Energy. These projects are part of the first group of build-own-operate battery storage initiatives.

Project details and implementing alliances

The first group of battery storage projects includes the Al-Muwayh and Hodn projects in the Makkah region, and the Al-Kahfah project in Hail region, each with a capacity of 500 megawatts for four hours. Agreements for these three projects were signed with a consortium comprising Saudi Energy Company, ACWA, and Al-Sharif Group for Contracting and Commercial Development.

The Al-Khushaybi project in the Qassim region, also with a capacity of 500 megawatts for four hours, was awarded to a consortium of Engie and Haji Abdullah Alireza & Co. Ltd.

Supporting renewables and grid efficiency

These projects aim to increase renewable energy capacity and battery storage within the national energy mix, targeting around 50% renewables by 2030 in line with rising electricity demand. The initiative is designed to enhance the reliability, efficiency, and operational flexibility of the power grid, strengthen energy supply security, and reinforce Saudi Arabia’s global leadership in the energy sector.

The Saudi Power Procurement Company is responsible for conducting feasibility studies, launching electricity generation and storage projects, and signing power purchase and storage service agreements with developer consortia.