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Saudi Arabia's SPPC awards 2 GW/8 GWh of BESS in latest tender

Saudi Power Procurement Company (SPPC) has signed storage service agreements for four BESS projects in Saudi Arabia with a combined capacity of 2 GW/8 GWh (Saudi Press Agency, 20/08/2026). The four projects are each rated 500 MW/2 GWh.

Three projects, the Al Muwyah BESS ISP, the Haden BESS ISP (both located in the Makkah region) and the Al-Kahafa project in the Hail region, were awarded to a consortium comprising Saudi Electricity Company, ACWA Power and Al Sharif Contracting and Commercial Development Company. The Al Khushaybi BESS ISP in the Qassim region was awarded to a consortium of ENGIE and Haji Abdullah Ali Reza & Co Ltd.

The SAR4.35bn (USD1.16bn) projects represent the first group of BESS developments to be implemented under a build-own-operate model in Saudi Arabia. The competitive tender attracted 52 applications, with 33 companies prequalified to participate. 

SPPC is also advancing a second round of battery storage procurement under the National Renewable Energy Programme, targeting an additional 3 GW/12 GWh of storage capacity. According to the Ministry of Energy, these projects are part of efforts to achieve an electricity generation mix comprising around 50% renewable energy by 2030