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
  • Etihad Rail awards multibillion-dollar high-speed rail contracts

    5 February 2026

     

    Register for MEED’s 14-day trial access 

    The UAE’s Etihad Rail has awarded multibillion-dollar design-and-build contracts for the civil works and station packages of the high-speed railway (HSR) line connecting Abu Dhabi and Dubai.

    The contract for the construction of the Abu Dhabi side of the railway was awarded to a consortium comprising Abu Dhabi's National Projects Construction (NPC), Trojan Tunnelling, Turkiye's Kalyon and Beijing-headquartered China State Construction Engineering Corporation.

    The other deal, comprising the construction of the Dubai side of the railway, was awarded to a consortium of India's Larsen & Toubro, Beijing-based China Harbour Engineering Company and local firm Wade Adams.

    MEED understands that the whole scheme is worth $8bn-plus.

    US-based Jacobs is the designer for the NPC group.

    French engineering firm Egis and Singapore’s Surbana Jurong are the designers for the L&T-led consortium.

    Last month, MEED exclusively reported that Etihad Rail was preparing to award the contracts for the HSR.

    The design speed of trains running on the UAE’s HSR network will be 350 kilometres an hour (km/h), and the operating speed will be 320km/h.

    The proposed HSR programme will be constructed in four phases, gradually adding further connectivity to other areas within the UAE.

    The first phase involves constructing a railway line connecting Abu Dhabi and Dubai, which is expected to be operational by 2030.

    The second phase will develop an inner‑city railway network with 10 stations within the city of Abu Dhabi.

    The third phase of the railway network involves constructing a connection between Abu Dhabi and Al-Ain.

    The fourth phase involves developing an inter-emirate connection between Dubai and Sharjah.

    The 150km first phase of the HSR will stretch from the Al-Zahiyah area of Abu Dhabi to Al-Jaddaf in Dubai.

    The project’s civil works have been split into two packages – Abu Dhabi and Dubai – comprising four sections. The scope of these sections includes:

    • Phase 1A: Al-Zahiyah to Yas Island (23.5km) 
    • Phase 1B: Yas Island to the border of Abu Dhabi/Dubai (64.2km)
    • Phase 1C: Abu Dhabi/Dubai border to Al-Jaddaf (52.1km)
    • Phase 1D: Abu Dhabi airport delta junction and connection with Abu Dhabi airport station (9.2km)

    The rail line will have five stations: Al-Zahiyah (ADT), Saadiyat Island (ADS), Yas Island (YAS), Abu Dhabi International airport (AUH) and Al-Jaddaf (DJD).

    The ADT, AUH and DJD stations will be underground, while ADS will be elevated and YAS will be at grade.

    The overall construction package also includes provisions for rolling stock, railway systems and two maintenance depots.

    The high-speed project will slash journey times between the UAE’s two largest cities and economic centres. The journey time between the YAS and DJD stations will be 30 minutes.

    Spanish engineering firms Sener and Ineco are the project’s engineering consultants.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15578874/main.jpg
    Yasir Iqbal
  • Aldar announces $18bn UAE contract awards in 2025

    4 February 2026

    Abu Dhabi-based real estate developer Aldar Properties has announced the award of construction contracts totalling over AED66bn ($18bn) in 2025.

    These awards span a diverse portfolio of residential, commercial, infrastructure and logistics projects across the UAE. 

    The newly awarded contracts cover large-scale residential communities, strategic infrastructure, and Grade A commercial and logistics assets across key growth locations nationwide.

    Collectively, the projects will deliver thousands of new homes, modern commercial and logistics facilities, and critical infrastructure that respond to evolving market demand and advance sustainable urban development.

    In Abu Dhabi, contracts were awarded across a range of projects for Aldar and the local government. On Saadiyat Island, local contractor Fibrex Construction was appointed for Mamsha Gardens and Nobu Residences, while Dubai-based Dutco Construction Company was awarded the main contract for The Arthouse.

    On Fahid Island, Indian firm Shapoorji Pallonji was awarded the main contract for Fahid Beach Residences.

    Beijing-headquartered China State Construction Engineering Corporation and Abu Dhabi’s Western Bainoona Group, Nael & Bin Harmal Hydroexpert, Yas Projects, Said Bin Darwish and Noor Al-Sahara General Contracting were also awarded contracts across a number of national housing and infrastructure projects during 2025.

    In Dubai, Aldar continued to deliver across major residential and logistics developments. Sharjah-based Ginco General Contracting was contracted to develop villas and townhouses at Athlon.

    Turkish firm Nurol was awarded the main works package for Verdes by Haven.

    Kuwait’s Mohammed Abdulmohsin Al-Kharafi & Sons was awarded the villas package for The Wilds, and local firm Al-Nasr Contracting Company was awarded the infrastructure works.

    In the industrial and logistics segment, Dubai-based Group Amana was awarded the development of Aldar Logistics Centres at National Industries Park.

    In Ras Al-Khaimah, Shapoorji Pallonji was awarded contracts for the Al-Marjan Beachfront development.

    Aldar said in a statement: “In line with the UAE’s National In-Country Value (ICV) programme, almost 45% of the total value of projects awarded in 2025 is expected to be recirculated into the local economy, supporting economic diversification, industrial development and job creation across the UAE.

    “Aldar continues to embed ICV principles across its procurement processes by prioritising UAE-based contractors and suppliers and supporting the growth of domestic capabilities across the construction value chain,” the statement added.

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

    Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

    Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15568462/main.jpg
    Yasir Iqbal
  • Kuwait signs 25-year offtake for Al-Zour North IWPP

    4 February 2026

    Kuwait has signed a 25-year energy conversion and water purchase agreement for the Al-Zour North independent water and power plant (IWPP) phases two and three.

    The deal was signed by Saudi Arabia’s Acwa and local financial institution Gulf Investment Corporation (GIC) with Kuwait’s Ministry of Electricity & Water, confirming the long-term offtake arrangements for the project.

    The signing marks a key step towards financial close on the estimated $4bn project. Once completed, the facility will add 2,700MW of power and 120 million imperial gallons a day of desalinated water to Kuwait’s supply network.

    Kuwait recently established a new public shareholding company to manage the next stages of the project.

    The Gulf Alliance for Power & Water Company will be responsible for the construction, implementation, management, operation and maintenance of Al-Zour North IWPP phases two and three.

    In August, Acwa, formerly Acwa Power, and GIC signed a contract to develop the project, which will be the country’s largest IWPP. The consortium will hold 40% of the project company through Al-Zour Kuwaiti Second & Third Holding Company.

    The Public-Private Partnership Authority will hold 10% on behalf of government entities, while 50% will be offered to Kuwaiti citizens through a public subscription process.

    The project is owned by the Kuwait Authority for Partnership Projects and the Ministry of Electricity, Water & Renewable Energy.

    The scheme will be developed under a build-operate-transfer model. The newly signed offtake agreement secures revenue for a 25-year period.

    China’s Sepco3 is the engineering, procurement and construction contractor for the project.

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

    Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

    Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15565047/main1611.jpg
    Mark Dowdall
  • Qatar’s Ashghal outlines Q1 2026 project plans

    4 February 2026

    Qatar’s Public Works Authority (Ashghal) has outlined plans to undertake 67 projects as part of its development strategy for 2026. 

    The majority of the upcoming projects cover sectors such as buildings, highways, roads, water and drainage.

    The projects to be undertaken in the first quarter of this year include:

    1. Access road to the Qatari Emiri Air Defence command building
    2. Call-off agreement for road and infrastructure works
    3. Carrying out all recommended work to ensure the necessary approvals from the Civil Defence Authority are obtained
    4. Remaining works of C/2020/60 RIW for junctions & RA in various areas of Greater Doha: phase 9
    5. Remaining works of C/2020/124 R & I in Mebaireek (Zone 81): packages 1&2
    6. Strategic FTS for Karwa City, Asian City, IA 2 Diversions and SA
    7. Modifications and additions to existing schools: packages 2-8
    8. Construction of Mekeines – Umm Bab Link Road
    9. Construction of Msheireb offices
    10. Construction of parking lots for areas 2 and 3 and modification of road infrastructure, the bus station and Gate 6
    11. Remaining works of C/2018/114 Umm Al-Dome improvement
    12. Remaining works of C/2019/90 access roads for Umm Ghuwailina 
    13. Remaining works of C2017/86, roads surrounding Al-Bayt Stadium 
    14. Remaining works of C2018/7 & C2017/118, Al-Kheesa foul sewer: packages 1&2
    15. Consultancy services for MM building damages investigation and repairs recommendations
    16. Consultancy services for modernisation of tunnels on Lusail Expressway & Sabah Al-Ahmad corridor
    17. Consultancy services for survey works, GIS, CAD and BIM on a call-off basis
    18. Consultancy supervision services for construction of Mekeines – Umm Bab Link Road
    19. Demolition and construction of two schools (Simaisma Junior School, Simaisma High School): package 3
    20. Demolition of decommissioned facilities: phase 6
    21. Design and build for water treatment plant (including treated sewage effluent plant for UDST)
    22. Design and construction of pedestrian crossings: phase 4
    23. Design of external administrative buildings for the protection and nature reserves sector, and the Turtle Protection Centre
    24. Design and build of a truck stop outside the wall of the medical quarry in Al-Ruwais
    25. Design, supply and install the new sparkling lights for the Arch 5/6
    26. Execution of Central Doha and Corniche Package: two remaining works
    27. Foul sewer GAP tunnel 1.6 kilometres long, diameter 600-800 mm at Doha North
    28. Framework contract for the road link works in several locations across Qatar 
    29. Industrial area STW asset improvement works: phase 2 AM24-0032
    30. Modernisation of tunnels on Lusail Expressway & Sabah Al-Ahmad corridor
    31. New consultancy supervision services
    32. On-call contract for geotechnical, environmental & structural tests and evaluation services
    33. Operational insurance – property all risk and third-party liability
    34. Package 1: design and build of strategic SGW drainage Western Tunnels – Southern area – C878/S1
    35. Paving and house connection for existing plot at Nuaija Zone 44
    36. Pilot deep wells construction
    37. PPP pre-contract framework – future work orders
    38. Pre-contract PCS for centralised sewage solids treatment and management facility
    39. Pre-contract PCS for Strategic Qatar Integrated Drainage Master Plan Update 2026 C767/3
    40. PSA for Strategic FTS for Karwa City, Asian City, IA 2 Diversions and SA
    41. PSA roads and infrastructure in Wadi Al-Banat (Zone-70)
    42. PSA roads and infrastructure in Al-Kheesa North and East (Rawdat Al-Hamama District): package 3
    43. R&I in southwest of Al-Wukair (DW086 – DW092)
    44. Refurbishment, reinstatement and repair works for strategic location in Qatar: phase 9 (QN) AM22-1011
    45. Roads and infrastructure in Al-Kheesa
    46. Roads and infrastructure in Al-Kheesa North and East (Rawdat Al-Hamama District): package 3
    47. Roads and infrastructure in Rawdat Abal Heeran: package 4
    48. Roads and infrastructure in Sailiya Al-Attiyah: package 1
    49. Roads and infrastructure in Sailiya Al-Attiyah: package 2
    50. Roads and infrastructure north of Smeisma: package 4
    51. Secondment contract for professional staff for the Highway Projects Department
    52. Secondment contract for professional staff for Roads Project department: phase 2
    53. STW rehabilitation and maintenance: Qatar West phase 2 AM25-0020
    54. Supervision for community college projects
    55. Supervision for design and construction of pedestrian crossings: phase 4
    56. Supervision for roads and infrastructure for Qatar Armed Forces
    57. Supervision for roads and infrastructure for Qatar Armed Forces – A
    58. Supervision for the design and build of a new communications room and technical store for Al-Shahaniya radio station
    59. Supervision for foul sewer GAP tunnel – 1.6km long, diameter 600-800 mm – at Doha North
    60. Supervision of deep injection wells enabling works – pilot at Al-Thumama
    61. Supervision of the Ministry of Education and Higher Education warehouses project
    62. Supply of equipment and spares for DNOM AM21-192
    63. Supply of pumps for DNO&M workshop section AM25-0075
    64. Surrounding roads around North Camp
    65. Surrounding roads around Doha Air Base
    66. TSE rehabilitation and maintenance: Qatar West phase 2 – AM25-0031
    67. TSE renewal programme and assets improvements: Qatar South phase 2 – AM22-132
    Qatar market overview

    Qatar’s next construction cycle is starting to take shape. In recent months, the country has made progress on several high-profile, large-scale infrastructure schemes that are set to inject fresh momentum into Qatar’s construction pipeline and, crucially, translate into years of contract flow for local contractors, suppliers and service firms.

    The largest of these schemes includes the proposed high-speed rail line connecting Riyadh and Doha, the revived Friendship Bridge to Bahrain and a planned road corridor linking Qatar with the UAE.

    For the construction industry, these moves signal that the state is ready to shift from post-World Cup consolidation to a new, longer-term buildout anchored in regional connectivity.

    That longer-term view is especially important after a flat 2025, when contract awards slipped to just over $2bn — the weakest annual total in the past five years — and many in the industry felt a widening gap between plans and procurement.

    The mood has now shifted. With about $64bn-worth of projects in the pipeline, Qatar is not short of project opportunities.

    The next phase has the potential to sustain contractors and the wider supply chain in the near term, while bringing a more predictable rhythm back to the market as these programmes are broken into packages and move to tender.

    MEED’s February 2026 report on Qatar includes:

    > COMMENT: Qatar’s strategy falls into place
    > GVT & ECONOMY: Qatar enters 2026 with heady expectations
    > BANKING: Qatar banks search for growth
    > OIL & GAS: QatarEnergy achieves strategic oil and gas goals in 2025
    > POWER & WATER: Dukhan solar award drives Qatar's utility sector
    > CONSTRUCTION: Infrastructure investments underpin Qatar construction

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15565036/main.jpeg
    Yasir Iqbal
  • Dar Global seeks firms for Dubai Trump tower and hotel

    4 February 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia-headquartered real estate developer Dar Global has asked contractors to express interest in a contract to build the Trump International Hotel and Tower project in Dubai.

    Dar Global is developing the project in collaboration with the US-based Trump Organisation.

    The 80-floor tower will be built next to the Shangri-La Hotel on Sheikh Zayed Road.

    The tower will be among the tallest in Dubai, with an estimated height of approximately 350 metres.

    In December last year, Dar Global appointed Dubai-based Edrafor Emirates to undertake the foundation works on the project.

    Dar Global is also developing the estimated $1bn Trump Plaza Jeddah project in Saudi Arabia. 

    In November last year, Abu Dhabi-based contractor Arabian Construction Company won the estimated SR2bn ($532m) main contract to build the Trump Tower Jeddah.

    The project comprises a mixed-use development of apartments, townhouses, offices, retail, food and beverage offerings, and a 4,000-square-metre club.

    Dar Global, a subsidiary of Dar Al-Arkan, was one of the first Saudi brands to list on the London Stock Exchange.

    According to an official statement, the project is the region’s first Trump International Hotel & Tower and represents the fifth collaboration between Dar Global and the Trump Organisation.

    Dar Al-Arkan established Dar Global in 2017 to focus on developing projects in the Middle East and Europe. It has $12bn-worth of projects under development in six countries: the UAE, Oman, Qatar, Saudi Arabia, the UK and Spain.

    It completed three developments – the Urban Oasis and Da Vinci towers in Dubai and the Sidra gated community in Bosnia – in 2023.

    The company collaborates with global brands including Missoni, W Hotels, Versace, Elie Saab, Automobili Pagani and Automobili Lamborghini.

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

    Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

    Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15564796/main.jpg
    Yasir Iqbal