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
  • Saudi Landbridge rail scheme to be delivered by 2034

    21 January 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia Railways (SAR) has said that it will deliver the Saudi Landbridge project through a "new mechanism" by 2034, after failing to reach an agreement with a Chinese consortium for the construction of the project.

    In an interview with local media, SAR CEO Bashar Bin Khalid Al-Malik said that the consortium failed to meet local content requirements, and the project will now be delivered in several phases through a different procurement model.

    The project has been under negotiation between Saudi Arabia and China-backed investors keen to develop it on a public-private-partnership basis.

    Al-Malik said that the project cost is about SR100bn ($26.6bn).

    It comprises more than 1,500 kilometres (km) of new track. The core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.

    Other key sections include upgrading the existing Riyadh-Dammam line, a bypass around the capital called the Riyadh Link, and a link between King Abdullah Port and Yanbu.

    The Saudi Landbridge is one of the kingdom’s most anticipated project programmes. Plans to develop it were first announced in 2004, but put on hold in 2010 before being revived a year later. Key stumbling blocks were rights-of-way issues, route alignment and its high cost.

    In April last year, MEED exclusively reported that SAR had issued a tender for the lead design consultancy services contract on the Saudi Landbridge railway network.

    MEED understands that the scope covered the concept design and options for the preliminary and issued-for-construction design stages on the network.

    MEED reported that the launch of a design tender directly by SAR suggested that Riyadh was looking at other options to develop it alongside the Chinese proposal.

    In December 2023, MEED reported that a team of US-based Hill International, Italy’s Italferr and Spain’s Sener had been awarded the contract to provide project management services for the programme.

    If it proceeds, the Saudi Landbridge will be one of the largest railway projects ever undertaken in the Middle East and one of the biggest globally. Based on typical design timeframes, tenders for construction are likely to be ready by mid-2026, although the question of how it will be financed will need to be answered before it can proceed to the next step.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15475837/main.gif
    Yasir Iqbal
  • Firms submit bids for Dorra gas scheme PMC

    21 January 2026

     

    Register for MEED’s 14-day trial access 

    Engineering firms have submitted bids to Al-Khafji Joint Operations (KJO) for a tender covering project management consultancy (PMC) for the multibillion-dollar Dorra gas field facilities development project.

    MEED reported last March that KJO was pushing forwards with a project to produce gas from the Dorra offshore field, located in Gulf waters in the Neutral Zone shared by Saudi Arabia and Kuwait.

    KJO has divided the engineering, procurement and construction (EPC) scope of work on the project to produce gas from the Dorra field into four EPC packages – three offshore and one onshore.

    The broad scope of services under the tender involves providing PMC for EPC works for the Dorra gas facilities development project.

    Firms submitted bids for the PMC tender by the deadline of 19 January, sources told MEED.

    KJO issued the tender for PMC services for EPC works on the Dorra gas facilities development project on 29 September. Engineering firms were initially given until 24 November to submit bids for the tender, with that deadline then extended until 15 December and then finally until 19 January, according to sources.

    Sources said that the following firms, among others, are understood to be bidding for the PMC tender:

    • Fluor (US)
    • KBR (US)
    • Kent (Saudi Arabia/UAE)
    • Tecnicas Reunidas (Spain)
    • Wood (UK)
    • Worley (Australia)

    KJO hosted a job explanation meeting with the bidders for the tender on 15 October, the sources said.

    KJO offshore and onshore facilities

    KJO, which is jointly owned by Aramco subsidiary Aramco Gulf Operations Company (AGOC) and KPC subsidiary Kuwait Gulf Oil Company (KGOC), is moving forward with its Dorra gas field facilities project. KJO has divided the project’s scope of work into four EPC packages – three offshore and one onshore.

    Indian contractor Larsen & Toubro Energy Hydrocarbon (L&TEH) has won package 1 of the Dorra facilities project, which covers the EPC of seven offshore jackets and the laying of intra-field pipelines. The contract awarded by KJO to L&TEH is estimated to be valued between $140m and $150m, MEED reported in October.

    Contractors are presently preparing to submit bids for the remaining three packages — offshore packages 2A and 2B, and onshore package 3 by 26 January, sources told MEED. KJO has extended the bid submission deadlines for these packages multiple times.

    The EPC scope of work for package 2A includes Dorra gas field wellhead topsides, flowlines and umbilicals. Package 2B involves the central gathering platform complex, export pipelines and cables. Package 3 includes the EPC of onshore gas processing facilities.

    Saudi Arabia and Kuwait are pressing ahead with their ambitious plan to jointly produce 1 billion cubic feet a day (cf/d) of gas from the Dorra gas field, located in the waters of their shared Neutral Zone. Discovered in 1965, the Dorra gas field is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.

    Saudi Arabia and Kuwait have been producing oil from the Neutral Zone – primarily from the onshore Wafra field and offshore Khafji field – since at least the 1950s. With a growing need to increase natural gas production, both countries have been working to exploit the Dorra offshore field, understood to be the only gas field in the Neutral Zone.

    The Dorra facilities project is one of three major multibillion-dollar projects launched by subsidiaries of Saudi Aramco and Kuwait Petroleum Corporation (KPC) to produce and process gas from the Dorra field that have been advancing over the past few months.

    AGOC onshore Khafji gas plant

    Meanwhile, AGOC has extended the bid submission deadline for seven EPC packages as part of a project to construct the Khafji gas plant, which will process gas from the Dorra field onshore Saudi Arabia, until 22 April.

    MEED previously reported that AGOC had issued main tenders for the seven EPC packages earlier in 2025. Contractors were initially set deadlines of 24 October for technical bid submissions and 9 November for submission of commercial bids, which was then extended by AGOC until 22 December.

    The seven EPC packages cover a wide range of works, including open-art and licensed process facilities, pipelines, industrial support infrastructure, site preparation, overhead transmission lines, power supply systems, and main operational and administrative buildings.

    France-based Technip Energies has carried out a concept study and front-end engineering and design (feed) work on the entire Dorra gas field development programme.

    Progress has been hampered by a geopolitical dispute over ownership of the Dorra gas field. Iran, which refers to the field as Arash, claims it partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development. Kuwait and Saudi Arabia maintain that the field lies entirely within their jointly administered Neutral Zone – also known as the Divided Zone – and that Iran has no legal basis for its claim.

    In February 2024, Kuwait and Saudi Arabia reiterated their claim to the Dorra field in a joint statement issued during an official meeting in Riyadh between Kuwaiti Emir Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah and Saudi Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.

    Since that show of strength and unity, projects targeting production and processing of gas from the Dorra field have gained momentum.

    KGOC onshore processing facilities

    KGOC has initiated early engagement with contractors for the main EPC tendering process for a planned Dorra onshore gas processing facility, which is to be located in Kuwait.

    KGOC is in the feed stage of the project, which is estimated to be valued at up to $3.3bn, and is now expected to issue the main EPC tender in the second quarter of this year, MEED recently reported.

    The proposed facility will receive gas via a pipeline from the Dorra offshore field, which is being separately developed by KJO. The complex will have the capacity to process up to 632 million cf/d of gas and 88.9 million barrels a day of condensates from the Dorra field.

    The facility will be located near the Al-Zour refinery, owned by another KPC subsidiary, Kuwait Integrated Petroleum Industries Company (Kipic).

    A 700,000-square-metre plot has been allocated next to the Al-Zour refinery for the gas processing facility, and discussions regarding survey work are ongoing. The site may require shoring, backfilling and dewatering.

    The onshore gas processing plant will also supply surplus gas to KPC’s upstream business, Kuwait Oil Company (KOC), for possible injection into its oil fields.

    Additionally, KGOC plans to award licensed technology contracts to US-based Honeywell UOP and Shell subsidiary Shell Catalysts & Technologies for the plant’s acid gas removal unit and sulphur recovery unit, respectively.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15472237/main3457.jpg
    Indrajit Sen
  • Libya announces $2.7bn Misurata Port expansion

    21 January 2026

    Register for MEED’s 14-day trial access 

    Libya has announced the $2.7bn expansion of Misurata Port, led by Terminal Investment Limited.

    The consortium comprises Switzerland's Mediterranean Shipping Company and Qatari firm Maha Capital Partners.

    The project is being implemented under a public-private partnership model, and is the first of its kind in the country's non-oil sector

    The expansion aims to increase the port's container-handling capacity to 4 million containers a year.

    Misurata Free Zone (MFZ) is Libya’s largest free zone, spanning an area of 2,576 hectares.

    According to an MFZ statement, the expansion includes:

    • Expanding container-handling capacity to accommodate larger vessels and more complex logistics chains;  
    • Integrating port operations with MFZ’s industrial ecosystem to support small and medium-sized entities, manufacturing and value-added services;
    • Deploying modern terminal equipment and digital systems;  
    • Enhancing safety, performance and environmental standards in line with global benchmarks;
    • Creating long-term employment opportunities.

    The Libyan Prime Minister’s Office said the expanded port is expected to generate around $600m in annual operating revenues, create about 8,400 direct jobs and support nearly 60,000 indirect jobs.

    The investment scope includes:

    • Five ship-to-shore (STS) gantry cranes
    • 10 mobile harbour cranes 
    • Eight rubber-tired gantry (RTG) cranes  
    • 32 reach stackers
    • Eight other pieces of equipment, like trucks and forklifts

    The project's first phase will raise container-handling capacity to 1.5 million 20-foot equivalent units (TEU), increase throughput by 7% and develop and manage berths to 2,000 metres in total.

    It also includes installing six RTG cranes and three STS cranes, developing 56 acres of container yards, building a 2,096-square-metre (sq m) refrigerated container warehouse and constructing an additional 7,500 sq m facility.

    An advanced terminal operating system will also be implemented.

    The second phase will add a further 2.5 million TEUs of capacity, construct a 2,500-metre breakwater, build a new 1,200-metre berth and a new 60-acre container yard, and deepen the port to 17 metres.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15471059/main.jpg
    Yasir Iqbal
  • Ras Al-Khaimah awards sewage PPP contract

    20 January 2026

    A consortium of Abu Dhabi National Energy Company (Taqa), France’s Saur and the local Etihad Water & Electricity (Etihad WE) has signed a contract to develop and operate a wastewater treatment plant in the UAE’s northern emirate of Ras Al-Khaimah.

    The Rakwa wastewater infrastructure project is Ras Al-Khaimah’s first public-private partnership (PPP) for a sewage treatment plant.

    It is being developed in partnership with Ras Al-Khaimah’s Public Services Department and Investment & Development Office.

    The $120m project entails developing a wastewater treatment plant with a capacity of 60,000 cubic metres a day (cm/d), expandable to 150,000 cm/d. 

    On 9 January, MEED exclusively reported that the consortium was set to be awarded the contract. The consortium is being led by Ajman-based Emirates Utilities Development Company, a subsidiary of Etihad WE.

    US/India-based Synergy Consulting is the financial advisory consultant to Taqa and EtihadWE on this project.

    MEED previously reported that two bidding consortiums had submitted bids for the contract. The other bidding consortium comprised the UAE’s Metito Utilities and Omani firm Sogex.

    The scope of the build, own, operate and transfer scheme will include extensive sewerage and distribution works in addition to the main treatment plant.

    Future PPP project

    For its part, Etihad WE is preparing to procure another utility PPP project in Ras Al-Khaimah.

    The project involves expanding the capacity of an existing seawater reverse osmosis plant in Ghalilah, which became operational in 2015. 

    The state-owned utility recently appointed Austria’s ILF Consulting Engineers to provide technical advisory services for the project, which is expected to be tendered this year.

    If successfully procured, it will be the first independent water project in Ras Al-Khaimah.

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

    Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

    Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:

    > ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15465691/main.jpg
    Mark Dowdall
  • Dubai tenders Al-Maktoum airport metro link

    20 January 2026

     

    Register for MEED’s 14-day trial access 

    Dubai's Roads & Transport Authority (RTA) has invited consultants to bid for the design contract for the Route 2020 extension.

    The extended line will start from the Expo 2020 metro station and connect with Al-Maktoum International airport's West Terminal.

    The extension to the line will run for about 3 kilometres (km) and will feature two stations.

    MEED understands that the invitation to bid was issued earlier in January with a submission deadline of mid-March.

    The existing Route 2020 metro link is a 15km-long line branching off the existing Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks, 3.2km of tunnels, and has five elevated stations and two underground stations.

    In 2016, the RTA awarded the AED10.6bn ($2.9bn) design-and-build contract for the project to a consortium of Spain's Acciona, Turkiye's Gulermak and France's Alstom.

    Dubai's plans for its metro network do not stop with connecting the extension of the Route 2020 metro line to Al-Maktoum International airport. There are long-term plans for further extensions.

    Other metro projects

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the upcoming Dubai Metro Gold Line project, also known as Metro Line 4.

    The Gold Line will start at Al-Ghubaiba in Bur Dubai. It will run parallel to – and alleviate pressure on – the existing Red Line, before heading inland to Business Bay, Meydan, Global Village and residential developments in Dubailand.

    The other metro lines in the pipeline are the Purple Line and the Pink Line, both of which are in the early stages of development.

    Firms are also bidding to update the emirate’s rail masterplan. Also in October 2025, MEED reported that 10 firms had submitted offers to undertake the project.

    The rail masterplan study will update and modify the RTA’s rail network, which includes the Dubai Metro and Dubai Tram. These plans will support Dubai’s 2040 urban masterplan, which aims for all residents to be within a 30-minute metro or light-rail trip to their place of work. 

    The existing network includes the Red and Green lines of the Dubai Metro and the Dubai Tram, which connects Al-Sufouh and Dubai Marina to the metro network. The last rail project to start operations in Dubai was the Red Line extension that opened for Expo 2020.

    There are also existing and planned rail lines connecting Dubai to other emirates that are being developed and operated by Abu Dhabi-based Etihad Rail. These include passenger and freight services as well as a high-speed rail connection.

    In December 2024, the RTA awarded a AED20.5bn main contract for the Dubai Metro Blue Line project to a consortium of Turkish firms Limak Holding and Mapa Group and the Hong Kong office of China Railway Rolling Stock Corporation.

    The Blue Line consists of 14 stations, including three interchange stations at Al-Jaddaf, Al-Rashidiya and International City 1, as well as a station in Dubai Creek Harbour. By 2040, daily ridership on the Blue Line is projected to reach 320,000 passengers. It will be the first Dubai Metro line to cross Dubai Creek and will do so on a 1,300-metre viaduct.

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

    Saudi Arabia courts real estate investment; EVs and battery production are key regional tech themes; Muscat holds a steady growth course despite headwinds

    Distributed to senior decision-makers in the region and around the world, the January 2026 edition of MEED Business Review includes:

    > ECONOMIC ACTIVITY INDEX: UAE and Qatar emerge as markets to watch
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15465636/main.jpg
    Yasir Iqbal