Saudi Invests in 2,000 MW of Battery Storage

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Saudi Arabia confirms itself as one of the busiest markets for battery energy storage systems (BESS) outside of China by awarding four projects with a combined capacity of 2,000 megawatts (MW).

The Saudi Power Procurement Company (SPPC), the principal energy buyer for Saudi Arabia, has awarded storage service agreements for four BESS projects with a combined capacity of 2,000 megawatts (MW) storage and 8,000 megawatt-hours (MWh) of power supply.  

The projects are the winners of the country's first round of BESS project awards, which kicked off early last year. The 500-MW Al-Khushaybi project in Al-Qassim province will be developed by a consortium of Engie and Haji Abdullah Ali Reza & Co Ltd, while the other three: the 500-MW Haden and Al-Muwyah projects in Makkah province and the 500-MW Al-Kahafa project in Hail province, will be developed by a consortium of Saudi Electricity Company, ACWA Power and Al Sharif Contracting and Commercial Development Company. According to Industrial Info Resources data, there are 17 active BESS projects in Saudi Arabia worth more than US$14.5 billion in investment. 

Storage is Essential

"Energy storage systems have become an essential part of how the Kingdom is developing its power system, rather than simply an addition that comes after renewable energy projects are in place. These plants will hold energy generated through the day and release it when demand reaches its peak," said Omar Al Hassan, chief executive officer, Saudi Arabia, at ACWA.

First Projects Under New Scheme

Supervised by the Ministry of Energy, they form part of the first group of BESS projects under the build-own-operate (BOO) model and contribute to efforts by the country to strengthen the reliability and efficiency of electricity generation. It is aiming for an electricity mix with approximately 50% renewable energy by 2030. In May, Industrial Info Resources reported the launch of the qualification process for Saudi Arabia's second group of BESS projects. It comprised six independent storage projects with a combined capacity of 3,000 MW and 12,000 megawatt-hours (MWh) power delivery over 4 hours. The projects will be developed under a build-own-operate (BOO) model, with successful developers holding full ownership in the project special purpose vehicles (SPVs). Subscribers can read more about the https://iir.link/j44lum" target="_blank">key projects here.

Storage Goals

Saudi announced last year that it will deploy 48 gigawatt-hours (GWh) of battery energy-storage system (BESS) capacity by 2030. Along with solar and wind, storage will be key to the country hitting 50% renewables by 2030  - that's a combined 130 GW of capacity - from a standing start of virtually zero in 2018.

Key Takeaways

• Saudi Arabia awarded battery energy storage systems (BESS) projects with a combined capacity of 2,000 megawatts (MW).
• The projects are the first winners under the country's new build-own-operate (BOO) model. 
• Industrial Info Resources is tracking 17 active BESS projects in Saudi Arabia worth more than US$14.5 billion in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).