Battery storage is crucial for the Middle East’s energy transition, connecting intermittent renewable sources with increasing demand, as highlighted by an S&P Global Ratings report.

Saudi Arabia and the UAE lead in large-scale battery projects, with Saudi Arabia targeting 48 GWh capacity by 2030.

The region is rapidly advancing from pilot schemes to significant deployments.

Analyst Sofia Bensaid notes that falling battery costs and supportive policies improve investment prospects, with projects typically financed through nonrecourse project finance.

Stable revenues from state-backed entities under long-term contracts minimise risks, emphasising the importance of remuneration schemes for project viability.