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Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), has signed four storage service agreements for battery energy storage system (bess) projects with a combined capacity of 2,000MW.

The projects will provide four hours of storage, equivalent to 8,000 megawatt-hours (MWh), and involve total investment of more than SR4.35bn ($1.16bn).

The agreements cover the first group of independent storage provider (ISP) bess projects being procured by SPPC under a build, own and operate model. The projects are supervised by the Energy Ministry.

Three projects have been awarded to a consortium comprising Saudi Energy, Acwa and Al-Sharif Contracting & Commercial Development Company.

These comprise the Al-Muwyah and Haden bess ISPs in the Mecca region, and the Al-Kahafa bess ISP in the Hail region. Each has a capacity of 500MW for four hours.

The fourth project, the Al-Khushaybi bess ISP in the Qassim region, has been awarded to a consortium of France's Engie and local firm Haji Abdullah Alireza & Co. This also has a capacity of 500MW for four hours. 

In July, MEED exclusively reported that Acwa and Engie were frontrunners for the Group 1 bess contracts. SPPC launched the qualification process for the scheme in November 2024, with bids submitted last year.

The projects form part of Saudi Arabia’s efforts to achieve an electricity generation mix comprising approximately 50% renewable energy by 2030.

Bess 2

As exclusively reported by MEED, SPPC issued the request for proposals for the second phase of its independent bess projects in July.

The Group 2 programme comprises six ISP projects with a total capacity of 3GW, equivalent to 12,000MWh based on a four-hour storage duration.

The six bess projects are:

• Samha bess ISP: 500MW (Qassim)
• Al-Leeth bess ISP: 500MW (Mecca)
• Al-Henakiyah bess ISP: 500MW (Medina)
• Khulis bess ISP: 500MW (Mecca)
• Sadawi bess ISP: 500MW (Eastern Province)
• Ashyrah bess ISP: 500MW (Mecca)

According to a source, developers have since submitted a first round of clarification requests to SPPC as they prepare their bids in advance of an October deadline.

On 1 July, MEED reported that up to 27 firms had prequalified to participate in the second phase. SPPC previously received statements of qualification on 13 May.

It is understood that Abu Dhabi National Energy Company (Masdar, UAE), Acwa (Saudi Arabia), EDF (France), Korea Electric Power Corporation (Kepco, South Korea), International Power (Engie, France) and Marubeni Corporation (Japan) are among the companies likely to make offers for the contracts.

Winning bidders will hold 100% equity in a special purpose vehicle (SPV), with each SPV entering into a storage services agreement with SPPC as part of the ISP structure. 

US/India-based Synergy Consulting is advising SPPC on the energy storage Group 1 and Group 2 programmes.

READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes: