meed-logo

line1 line2 line3
SIGN IN / REGISTER

GCC battery storage pipeline hits over 55GWh

28 February 2025

Analysis
Jennifer Aguinaldo
Energy & technology editor

 

The battery energy storage system (bess) plant project pipeline in the GCC region – mainly in Saudi Arabia and the UAE – has reached 55.4 gigawatt-hours (GWh) of estimated rated capacity.

Data from MEED and regional projects tracker MEED Projects indicates that schemes with a total capacity of about 21.7GWh are under construction, primarily in Saudi Arabia, while bess plants in the pre-execution phase have an estimated cumulative rated capacity of 33.8GWh.

This substantial pipeline has been built over the past two to three years, when a total of 3.9GWh of capacity was built in Saudi Arabia through the 1.3GWh Red Sea multi-utility project and the recently completed 2.6GWh battery energy storage plant by Saudi Arabia's National Grid.

"The main energy storage driver across the GCC region is the rapid deployment of low-cost solar power to meet growing demand," notes Marek Kubik, a Saudi Arabia-based industry expert. 

"As photovoltaic (PV) produces power only in the day and is a non-synchronous form of power, this brings with it certain balancing, ramping and stability challenges. 

"Bess is needed for storing and shifting solar power from day to night, to reduce congestion and improve utilisation on the transmission system, as well as providing stability services to support stable grid operations," says Kubik.

Capacity ramp-up

With an estimated 775MW/3.9GWh of deployed capacity at the end of 2024, the GCC region accounts for a small proportion of the global deployment of about 160GW or 363GWh, according to the Volta Foundation.

The global not-for-profit group said global bess installations last year accounted for more than 45% of the total cumulative global capacity.

The region is poised to catch up with the rest of the world, however. Saudi Arabia's Bisha bess plant is one of 17 projects globally with a capacity of over 1GWh that entered operations in 2024.

A total of 21.7GWh of capacity is under construction in Saudi Arabia and is expected to be completed by the end of the year, with more under way.

Such growth will likely overtake the 55% year-on-year growth observed by the Volta Foundation.

The GCC region’s first major bess independent power producer (IPP) scheme was integrated into Red Sea Global’s multi-utility package in Saudi Arabia.

Developed by Saudi utility developer Acwa Power and built by China’s Huawei Digital, the 1,300 megawatt-hour (MWh) facility caters to the 28,000 square-kilometre “regenerative” tourism project on the west coast of the kingdom, which is being powered 100% by clean energy.

A bess facility with a capacity of 760MWh is also included in a similar multi-utility package for Red Sea Global’s sister development, Amaala.

The 2.6GWh Bisha represents an important milestone, ushering the kingdom onto the list of the world's top locations for lithium iron phosphate (LFP)-based bess.

So far, every utility or grid operator in the GCC, Morocco and Jordan plans to procure or has started to procure bess capacity independently, to balance their grid as electricity demand and renewable energy capacity increase, or as part of a solar power plant scheme.

In the absence of viable hydropower capacity, which is the main energy storage capacity in non-water-scarce regions, or thermal energy storage systems like molten salt, bess is emerging as the best alternative to enhance the flexibility of existing energy or electricity systems as sources increasingly diversify.

Abu Dhabi state utility Emirates Water & Electricity Company (Ewec) received 93 expressions of interest and prequalified more than two dozen companies to bid individually or as members of consortiums for its first pair of bess plants, which will have a capacity of up to 800MWh.

In January, Ewec and Abu Dhabi Future Energy Company (Masdar) announced a project that aims to convert solar power into base load capacity by coupling a 5GW solar PV plant with a 19GWh battery energy storage facility in Abu Dhabi.

Falling lithium prices and oversupply 

The need for grid flexibility and a steep fall in the price of lithium – the main raw material for the dominant battery technology – has helped utilities to move forward with their plans to procure bess, which was considered cost-prohibitive until a year ago.

According to a BloombergNEF (BNEF) report in December, lithium-ion battery pack prices dropped 20% from 2023, to a record-low of $115 a kilowatt-hour.

Factors driving the decline include cell manufacturing overcapacity, economies of scale, low metal and component prices, the adoption of lower-cost LFP batteries and a slowdown in electric vehicle (EV) sales growth.

In the past two years, battery manufacturers have expanded production capacity in anticipation of surging demand for batteries in the EV and stationary storage sectors.

According to BNEF, overcapacity is rife, with 3.1 terawatt-hours of fully commissioned battery-cell manufacturing capacity globally, which is more than 2.5 times the annual demand for lithium-ion batteries in 2024.

It added that while demand in all sectors saw year-on-year growth, the EV market – the biggest demand driver for batteries – grew more slowly than in recent years.

In contrast, stationary storage markets have taken off, with strong competition in cell and system providers, especially in China.

Completed and under-construction bess plants in the GCC are all supplied by Chinese battery cell and system providers. BYD and Sungow account for 59% and 36% of completed and under-construction battery energy storage plants in Saudi Arabia, respectively, while Huawei accounts for the rest.

Contemporary Amperex Technology Company (CATL) will be supplying the battery cell and systems for Abu Dhabi's round-the-clock 1GW solar project.

Prices are expected to fall further, which will likely accelerate GCC deployments.

Some experts predict the prices could drop to as low as $50/kWh-$25/kWh and, at best, to as low as $10/kWh by the end of the decade, subject to extrapolating current battery learning rates of about 25% for every doubling of capacity. 

Longer-duration battery cells

Despite their expected widespread deployment, there are concerns that batteries providing up to six hours of storage may not be sufficient to address the peak electricity demand in most GCC states.

Demand in the GCC states peaks between 6pm and 6am, when air-conditioning systems, street lighting and other home appliances are turned on, and where there is little wind capacity to supply renewable power.  

Nevertheless, a staged approach to bess deployment is necessary to get to a fully net-renewable electricity system, says Kubik.

"Around the world, this is approached in a staged manner and bess of increasing duration is added over time, as the depth of renewable penetration increases," he says.

"The GCC has, to an extent, leapfrogged other markets by starting with four-hour to six-hour bess, but over time this need will grow to about eight- to 10-hours, which is enough to move to more or less a ‘baseload’ around-the-clock solar profile. As LFP costs continue to fall, longer-duration systems are rapidly becoming more economic." 

READ MEED’s YEARBOOK 2025

MEED’s 16th highly prized flagship Yearbook publication is available to read, offering subscribers analysis on the outlook for the Mena region’s major markets.

Published on 31 December 2024 and distributed to senior decision-makers in the region and around the world, the MEED Yearbook 2025 includes:

> GIGAPROJECTS INDEX: Gigaproject spending finds a level
https://image.digitalinsightresearch.in/uploads/NewsArticle/13438887/main5753.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Riyadh shifts bid deadline for King Salman Stadium works

    11 November 2026

     

    Saudi Arabia’s Sports Ministry has set a deadline of 1 December for a contract covering early works at the King Salman International Stadium in Riyadh.

    The tender scope encompasses enabling works, site preparation and initial construction activities. The tender was issued on 11 October, carrying an initial submission deadline of 19 November. Contractors previously submitted prequalification statements for the main design-and-build contract in February.

    Designed by US-based architectural firm Populous, the stadium will cover approximately 660,000 square metres (sq m), seat 92,000 spectators and stand adjacent to King Abdulaziz Park. Facilities will feature a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.

    The broader masterplan encompasses more than 360,000 sq m of ancillary facilities, featuring two training fields, fan zones, a closed sports hall, an Olympic-sized swimming pool, an athletics track, and outdoor courts for volleyball, basketball and padel.

    Scheduled for completion by 2029, the venue will serve as the home base for the Saudi national football team and host the opening match and final of the 2034 Fifa World Cup.

    Saudi stadium plans

    In August 2024, MEED reported that Saudi Arabia plans to build 11 new stadiums and refurbish four existing venues for the 2034 tournament. Eight venues will be located in Riyadh, four in Jeddah, and one each in Al-Khobar, Abha and Neom.

    An additional 10 cities will host team base camps: Al-Baha, Jazan, Taif, Medina, AlUla, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah. Across the kingdom, organisers plan to deploy 134 training sites, comprising 61 existing facilities and 73 new builds.

    Saudi Arabia was officially selected to host the 2034 Fifa World Cup during an online convention of member associations at the Fifa Congress on 11 December 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21325461/main.jpg
    Yasir Iqbal
  • Hormuz crisis sparks regional pipeline project boom

    11 November 2026

    Analysis
    Wil Crisp
    Oil & gas reporter

    Register for MEED’s 14-day trial access 

    The ongoing disruption to shipping through the Strait of Hormuz and the Bab Al-Mandab Strait has sparked a regional pipeline project boom, as countries seek to diversify export routes for oil and gas.

    Since the US and Israel attacked Iran on 28 February, several major pipeline projects have been announced, while others are being revived or accelerated.

    Countries that are participating in this regional pipeline boom include Iraq, Syria and Egypt.

    While the regional conflict has changed the dynamics within the oil and gas sectors of each of these countries in different ways, all of them see major pipeline projects as a key part of their strategic response to the conflict.

    Iraqi expansion

    Iraq is one of the region’s oil exporters that has been hit the hardest by the disruption to shipping through the Strait of Hormuz.

    Prior to the start of the regional conflict, the country was routing 94% of its total exports through the strait, with about 3.4 million barrels a day (b/d) being exported through its southern ports at the start of the year.

    At the same time, about 200,000 b/d was being exported via the Iraq-Turkiye Pipeline (ITP) in the north of the country.

    In the wake of the disruption to shipping through the Strait of Hormuz, Iraq has increased the volumes being exported via the ITP and has boosted its crude exports by truck through Syria.

    Earlier this month, domestic news outlets reported that Iraq’s State Oil Marketing Organisation is exporting 500,000 b/d through the ITP.

    The daily exports consist of 125,000 barrels of Kirkuk crude, 175,000-200,000 barrels of Kurdistan Region crude and about 200,000 barrels of Basra crude, according to the reports.

    The Basra oil reaches collection stations at Sarallu and Khurmala by truck and from there is pumped north to Ceyhan in Turkiye.

    The volume of crude exported from Iraq by truck to the Syrian port of Baniyas has risen significantly in recent months.

    In October, Youssef Qablawi, the chief executive of the state-owned Syrian Petroleum Company, said that about 1,000 trucks were transporting fuel oil to Syria each day, with each truck carrying about 220 barrels.

    This represents exports of 220,000 b/d, which is a significant volume for Iraq, but transporting crude by truck is much more expensive than using a pipeline.

    Because of this, Iraq sees pipeline projects as a long-term solution to its reliance on the Strait of Hormuz and is rapidly pushing ahead with projects that are designed to replace exports currently transported by road, as well as increasing the volumes that can be exported via both Syria and Turkiye.

    Earlier this month, MEED reported that the governments of Iraq and Syria, state-owned oil companies and a consortium led by Qatar’s UCC are currently discussing the terms of a deal for four interconnected pipeline packages that are expected to have a total value of about $5bn.

    Stakeholders expect a contract to be signed before the end of the year that will make the UCC-led coalition the selected developer responsible for tendering engineering, procurement and construction (EPC) contracts for the project.

    The consortium includes US-based Chevron, investment company TI Capital and France’s TotalEnergies.

    The four pipeline routes that are being discussed are:

    • Basra to Najaf
    • Najaf to Haditha
    • Haditha to Fish Khapour
    • Haditha to Banias Port in Syria

    The proposed plan will use a fast-track framework to bring the pipelines online as quickly as possible.

    Red Sea route

    Iraq and Saudi Arabia are also considering reviving an old pipeline route between the Zubair oil field in Basra and the Red Sea port of Yanbu.

    Operations of this 1,568-kilometre (km) pipeline were halted in August 1990 following Iraq's invasion of Kuwait and the onset of the Gulf War.

    At the end of October, Saudi Arabia granted preliminary approval to revive the joint oil export pipeline project, according to a report published by Saudi Arabia’s Shafaq News, which cited anonymous sources.

    If the pipeline is reinstated, it could allow Iraq to export oil via the Red Sea, reducing its reliance on the Strait of Hormuz.

    The pipeline was originally built at a cost of more than $2.6bn and featured a large network of storage tanks and offshore loading terminals.

    Syrian strategy

    In addition to its involvement in Iraq’s strategic export pipeline project, Qatar’s UCC is developing a pipeline project in Syria that will increase the country’s ability to deal with future supply disruptions.

    On 30 September, UCC announced that it has , which will extend 186km between Homs and Aleppo.

    The 36-inch pipeline will have a transmission capacity of up to 11 million cubic metres a day (cm/d) of gas and will connect gas networks in Jordan to those in Turkiye via Syria.

    In its announcement, UCC said that the project is scheduled for completion within 22 months and will contribute to strengthening Syria’s gas infrastructure; enhancing the capacity of its gas transmission network; and supporting regional connectivity with Jordan, Turkiye and Lebanon.

    Hisham Al-Saleh, Syrian Petroleum Company’s deputy chief executive for the gas sector, has said that the project includes the installation of three compressors in Furqlus, which will allow gas to be transported in both directions between Turkiye and Jordan.

    Speaking to the state-owned Syrian Arab News Agency, he said that the project will add an estimated 8 million cubic metres of storage capacity to the Syrian gas network, providing greater flexibility in managing gas production and use.

    Egyptian ambitions

    Egypt is also ramping up pipeline project activity in order to increase the number of oil and gas links that it has with neighbouring countries.

    The North African nation has long had ambitions to try and become a major regional energy hub.

    These plans have been given a boost by the ongoing disruption to shipping through the Strait of Hormuz and the Bab Al-Mandab Strait, which has reduced exports from nations like Qatar, Kuwait, Iraq, the UAE and Saudi Arabia.

    Concerns about the reliability of exports from Iraq and the GCC have led to increased investment in oil and gas infrastructure in countries that are not reliant on these waterways to transport hydrocarbons.

    In recent months, significant progress has been made on an integrated project that was launched in order to export offshore gas reserves in Cyprus via Egyptian energy infrastructure.

    In October, Italian oil and gas company Eni signed the main EPC and drilling contracts for the project, which will develop the Cronos field.

    The project includes contracts with several companies that will develop infrastructure in both Egypt and Cyprus.

    The awards include a $170m contract that has been won by Egypt’s Petrojet for a new onshore gas pipeline in Egypt that will help to transport gas to Egypt’s Damietta liquefied natural gas (LNG) facility.

    Separately, US-based Baker Hughes signed a contract for the design, procurement and construction of subsea production systems, including associated equipment and control systems.

    In September, it was announced that US-headquartered McDermott will carry out offshore work for the project, including the transportation, installation and connection of subsea pipelines and equipment.

    The Cronos development project will significantly increase the volume of gas being imported into Egypt, where it can be exported as LNG as well as helping to meet domestic demand.

    On top of the major pipeline project allowing the importation of gas from Cyprus, Cairo is also looking at other regional pipeline projects, including gas links to Libya.

    In a statement released earlier this month, Egyptian Foreign Minister Badr Abdelatty said that a Libyan team will ​visit ⁠Cairo soon to continue technical talks about the gas pipelines, as well as other energy projects, with Egypt’s petroleum and electricity ministers.

    Pipeline problems

    While the planned oil pipeline projects in Iraq are seen as a possible solution to the disruption to shipping through the Strait of Hormuz, they are also likely to face problems relating to the importation of necessary equipment that would normally be shipped through the waterway.

    The Common Seawater Supply Project, designed to bring water from the sea to inject into oil fields, is currently behind schedule, largely because of problems importing the pipeline segments through the strait.

    This issue could plague other planned pipeline projects in Iraq if the disruption to shipping continues, forcing contractors to use other, more costly, import routes.

    Challenging conditions

    Even when Iraq’s major export pipeline projects are completed, they may fail to resolve the country’s oil export problems to the extent many are expecting.

    While the export pipelines will go some way towards diversifying away from reliance on exports through waterways where oil and gas tankers are vulnerable to militant attacks, many industry insiders say Iraq could just be replacing one vulnerable export route with another.

    Oil pipelines in the Middle East and North Africa region have a long history of suffering attacks and often stretch long distances through remote regions where they are difficult to defend.

    Ultimately, it is likely that finding a diplomatic solution to the regional conflict will be the only way that Iraq can reliably increase its oil exports in the long term.

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21305172/main.jpg
    Wil Crisp
  • Saudi Arabia approves revival of Iraq oil pipeline

    11 November 2026

    Register for MEED’s 14-day trial access 

    Iraq and Saudi Arabia are considering reviving an old pipeline route between the Zubair oil field in Basra and Saudi Arabia’s Red Sea port of Yanbu.

    Operations of this 1,568-kilometre (km) pipeline were halted in August 1990 following Iraq’s invasion of Kuwait and the onset of the Gulf War.

    At the end of last month, Saudi Arabia granted preliminary approval to revive the joint oil export pipeline, according to a report published by Saudi Arabia’s Shafaq News that cited anonymous sources.

    If the pipeline is reinstated, it could allow Iraq to export oil via the Red Sea, reducing its reliance on the Strait of Hormuz.

    The pipeline was originally built at a cost of more than $2.6bn and featured a large network of storage tanks and offshore loading terminals.

    Under current discussions, Iraq will be required to fund the restoration of its own section of the pipeline.

    The Middle East and North Africa region is currently experiencing a boom in pipeline project activity due to disruption to shipping as a result of the war that started when the US and Israel attacked Iran on 28 February 2026.

    As a result of the conflict, the shipping of gas, chemicals, oil and refined products has been disrupted in both the Strait of Hormuz and the Bab Al-Mandab Strait.

    Many countries, including Saudi Arabia and Iraq, see pipelines as a key way of diversifying export routes so that they are less reliant on shipping through these two waterways.

    MEED’s October 2026 report on Saudi Arabia includes:

    > COMMENT: Saudi projects hold steady
    > GOVERNMENT: Riyadh looks to reset its regional defence outlook
    > ECONOMY: Conflict bolsters case for Saudi economic diversification
    > BANKING: Saudi lenders readjust to lower lending and deposit climate
    > UPSTREAM: Aramco upstream spending gathers pace
    > DOWNSTREAM: Sabic steps up Saudi petchems investment
    > POWER: Saudi Arabia’s power award activity slows
    > WATER: Saudi water sector hits sharp slowdown
    > CONSTRUCTION: Saudi construction defies the headwinds
    > TRANSPORT: Saudi infrastructure pushes forward amid conflict
    > DATABANK: Saudi data indicates project spending shift

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/21304885/main.jpg
    Wil Crisp
  • Dubai approves metro extension to Al-Maktoum airport

    10 November 2026

    Register for MEED’s 14-day trial access 

    Dubai’s Executive Council has approved a project to extend the Dubai Metro’s Route 2020 to Al-Maktoum International Airport City, with passenger services scheduled to begin operations in 2031.

    Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum, Crown Prince of Dubai, announced the decision following a council meeting held during the UAE Government Annual Meetings 2026.

    The rail project forms part of a package of strategic schemes worth over AED11bn ($3bn) approved by the council.

    The wider approvals include a comprehensive framework to upgrade community facilities and public services by 2040, with priority given to residential communities for UAE citizens.

    The project approval follows the procurement of detailed design work for the rail link. MEED exclusively reported in September that Dubai’s Roads & Transport Authority (RTA) had awarded US-based engineering consultancy Aecom the design contract for the Route 2020 extension.

    The planned extension will run for about 3 kilometres from the existing Expo 2020 terminus station to connect directly with the West Terminal of Al-Maktoum International airport. The scheme will add two new stations to the network.

    The existing Route 2020 corridor is a 15km spur that branches off the Dubai Metro Red Line at Jebel Ali station. It comprises 11.8km of elevated viaduct and 3.2km of underground track, serving five elevated and two underground stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21301168/main.png
    Yasir Iqbal
  • Bahrain tenders 100MW Bilaj Al-Jazayer solar project

    10 November 2026

     

    Register for MEED’s 14-day trial access 

    Bahrain’s Electricity and Water Authority (EWA) has issued a tender for the Bilaj Al-Jazayer independent power project (BAJ solar IPP), a utility-scale solar scheme with a planned capacity of at least 100MW.

    The project will be procured on a public-private partnership basis using a build-own-operate (BOO) model.

    The selected developer will develop, finance, design, construct, operate, maintain, decommission and restore the project site over a 25-year contract period.

    EWA has set a target commercial operation date of 31 December 2028.

    The scope includes photovoltaic generation facilities, utility-scale inverters, access roads and internal roads. The plant will use proven photovoltaic modules and inverters designed for Bahrain’s local operating conditions.

    The tender was published on 8 November. Companies have until 20 December to submit bids, with bid opening scheduled for 21 December.

    The tender requires an initial bond of BD300,000 ($796,000).

    The project will be awarded through a single-stage request-for-proposals process.

    Bidders will first be assessed against minimum eligibility requirements covering financial strength, project-financing capability and experience in large-scale solar developments before their technical and financial proposals are evaluated.

    A single bidder must demonstrate tangible net worth of at least $50m.

    In a consortium, each member must demonstrate net worth equivalent to its proposed shareholding in the $50m threshold, while the managing member must have a tangible net worth of at least $20m.

    The managing member must also have secured at least $150m of limited-recourse financing across three or more infrastructure projects during the past 10 years. It must hold at least a 15% equity stake in each reference project.

    Bidders or their engineering, procurement and construction contractors must demonstrate experience delivering either three grid-connected ground-mounted solar projects of at least 100MWac each globally, or two projects of at least 70MWac each in the GCC. The reference projects must be connected to the grid at 66kV or above.

    The BAJ solar IPP supports Bahrain’s target of sourcing 20% of its energy from renewable sources by 2035.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21291585/main.jpg
    Yasir Iqbal