Alfanar and BYD win 2.5GW battery storage contract
22 January 2025
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National Grid Saudi Arabia, a wholly-owned subsidiary of Saudi Electricity Company (SEC), has awarded the local Alfanar Company an engineering, procurement and construction (EPC) contract for five battery energy storage system (bess) facilities with a total combined installed capacity of up to 2,500MW, equivalent to about 10,000 megawatt-hours (MWh).
China's BYD Auto won the contract for the design; supply; supervision of installation, testing and commissioning; and maintenance of the bess plants.
MEED previously reported that the planned facilities, each with a capacity of 500MW or about 2,000MWh, are located in – or in proximity to – the following cities and load centres:
- Riyadh
- Qaisumah
- Dawadmi
- Al-Jouf
- Rabigh
The EPC contract value is over $2bn, according to estimates from regional projects tracker MEED Projects.
The scope includes the construction of bess substations and associated infrastructure.
The main applications for the planned bess facilities include load shifting, black start, frequency regulation and voltage support.
They are expected to replace part-load operation of existing power plants by charging and discharging electricity according to system load variations and primary and secondary reserves, among other potential applications.
In August last year, National Grid Saudi Arabia awarded the EPC contracts for three energy storage systems to Riyadh-based investment group Algihaz Holding.
The projects are located in Najran, Madaya and Khamis Mushait.
According to an industry source, the contracts are valued at more than $800m.
Surging growth
The overall capacity of deployed bess facilities globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, according to GlobalData.
The global information services provider named Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.
Carmakers Tesla, Volkswagen, Stellantis, General Motors, Mitsubishi Motors and Hyundai were identified as the key end-markets for battery products to date.
GlobalData expects battery energy storage deployment to increase “due to a large number of countries opting for battery storage systems to enhance their power sector transformation”.
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Siemens Energy wins $1.6bn Saudi deal
13 March 2025
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Chinese engineering, procurement and construction (EPC) contractor Harbin Electric International has awarded Germany’s Siemens Energy a contract to supply combined-cycle gas turbine (CCGT) units for the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia.
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Photo credit: Siemens Energy
READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
> AGENDA 1: Chinese firms dominate region’s projects market> AGENDA 2: China construction at pivotal juncture> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> DIRIYAH: Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector> EGYPT: Egypt battles structural issues> GULF PROJECTS INDEX: Gulf hits six-month growth streak> CONTRACT AWARDS: High-value deals signed in power and industrial sectors> ECONOMIC DATA: Data drives regional projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483115/main.jpg -
Chinese builders go global
13 March 2025
Commentary
Colin Foreman
EditorRead the March MEED Business Review
It is difficult to fathom the scale of growth experienced by China’s construction sector over the past 20 years. Since 2004, it has grown by over 800%, with a compound annual growth rate of 11% to reach an estimated value of $4.5tn.
That success has created contractors that are now the largest construction companies on the planet. According to GlobalData, seven Chinese companies are among the top 10 largest construction companies in the world, with China State Construction Engineering Corporation topping the list with revenues of $320bn.
In the Middle East and North Africa, Chinese contractors dominated in 2024 by securing $90bn of the $347bn of contracts awarded, according to data from MEED Projects.
The region’s active projects market has created unprecedented demand for contractors. Most notably, project clients in Saudi Arabia have been actively courting international construction companies to come and work in the kingdom.
Many international contractors exited the region over the past decade, which has meant Chinese contractors have had little competition as they stepped in to fill the void and deliver crucial projects.
On top of exploiting the shifting competitive landscape, Chinese successes have been able to meet the budgetary requirements of many projects, offering cost-effective solutions and even providing financing.
At the same time, the maturing Chinese economy has driven contractors to seek opportunities abroad. With a slowing domestic real estate market, they are turning to international markets for growth. The Middle East presents an attractive option due to its wide range of projects, backed by financially secure clients and governments.
The scale of the contractors and the large number of players yet to meaningfully venture overseas means they possess the ability to grow even further in the Middle East and North Africa as the region continues to press ahead with large-scale projects that require vast resources.
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READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
> AGENDA 1: Chinese firms dominate region’s projects market> AGENDA 2: China construction at pivotal juncture> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> DIRIYAH: Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector> EGYPT: Egypt battles structural issues> GULF PROJECTS INDEX: Gulf hits six-month growth streak> CONTRACT AWARDS: High-value deals signed in power and industrial sectors> ECONOMIC DATA: Data drives regional projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483117/main.gif