The Saudi Power Procurement Company (SPPC), the Principal Buyer, has signed four storage service agreements (SSAs) for the first group of Battery Energy Storage System (BESS) projects in Saudi Arabia, with combined investments worth over SAR4.35 billion ($1.16 billion).

The four projects will totally deliver a combined storage capacity of 2,000MW for four hours, equivalent to 8,000 MWh of energy storage capacity, and will be developed under the build-own-operate (BOO) model.

SPPC said a consortium comprising Saudi Energy, Acwa Power and Al Sharif Contracting and Commercial Development Company has been awarded the contract to develop three 500 MW/4-hour BESS facilities. These are: 

*Al Muwyah BESS ISP in Makkah Region – 500 MW for four hours

*Haden BESS ISP in Makkah Region – 500 MW for four hours

*Al Kahafa BESS ISP in Hail Region – 500 MW for four hours

Meanwhile, the Al Khushaybi BESS ISP project in Qassim Region, with a capacity of 500 MW for four hours, has been awarded to a consortium comprising French utility major Engie and Haji Abdullah Alireza & Company.

The scope of the four projects includes the development, financing, construction, ownership, operation and maintenance of large-scale battery energy storage facilities. 

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.

Supervised by the Ministry of Energy, the projects form part of Saudi Arabia’s wider programme to expand energy storage infrastructure and facilitate the large-scale integration of renewable energy into the national electricity system.

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% renewable energy by 2030, while meeting growing electricity demand and reducing the need for conventional generation during periods of peak demand.

These projects aim to support the integration of renewable energy and energy storage into the kingdom’s electricity system and contribute to achieving an optimal electricity generation mix of approximately 50% renewable energy by 2030, in line with growing electricity demand, said SPPC in its statement.

They will also contribute to enhancing the reliability and efficiency of the electricity system, increasing its operational flexibility, supporting the security of electricity supply, and strengthening the Kingdom’s global leadership in the energy sector.

The Principal Buyer is responsible for conducting pre-development studies, tendering power generation and energy storage projects, and signing power purchase agreements and storage service agreements with developer consortia, it added.-TradeArabia News Service