A consortium comprising Saudi Energy, Acwa Power and Al Sharif Contracting and Commercial Development Company has been awarded three of four 500-MW each battery energy storage system (BESS) projects worth a total investment of over SAR4.35 billion ($1.16 billion)  in Saudi Arabia.

Under the deal signed by the Saudi Power Procurement Company (SPPC), the principal buyer, the four projects will deliver a combined storage capacity of 2,000 MW for four hours, equivalent to 8,000 MWh of energy storage capacity.

The three projects being developed by Saudi Energy, Acwa Power and Al Sharif Contracting and Commercial Development Company consortium include the Al Muwyah and Haden BESS ISPs in the Makkah Region, and the Al Kahafa BESS ISP in the Hail Region.

Meanwhile, a consortium comprising Engie and Haji Abdullah Alireza & Company will develop the Al Khushaybi BESS ISP project in the Qassim Region.

The scope of the four projects includes the development, financing, construction, ownership, operation and maintenance of large-scale battery energy storage facilities under the build-own-operate (BOO) model.

The projects will store electricity for up to four hours and dispatch power when required, supporting grid stability, improving operational flexibility and enhancing the security and reliability of electricity supply across the Kingdom.

The agreements were signed in the presence of Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, who also serves as Minister of Industry and Mineral Resources and Chairman of the Board of Managers of SPPC.

The BESS facilities are expected to play a key role in supporting the Kingdom’s target of achieving an optimal electricity generation mix comprising approximately 50 per cent renewable energy by 2030, while meeting growing electricity demand and reducing the need for conventional generation during periods of peak demand.