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
  • Firms prepare bids for NWC sewage treatment package 14

    4 September 2026

     

    At least three contractors are preparing to make offers for package 14 of Saudi Arabia’s long-term operations and maintenance (LTOM) sewage treatment programme, according to sources.

    Known as Eastern A Cluster (LTOM14), the package was tendered by the state-owned National Water Company (NWC) in April, with a bid submission deadline of 30 September.

    The contract covers the upgrade of six existing sewage treatment plants (STPs), with a capacity expansion of 30,000 cubic metres a day (cm/d) at the Al-Jarodia STP.

    This will increase total treatment capacity from about 263,000 cm/d to approximately 293,000 cm/d, with an estimated cost of $180m.

    According to sources, the firms preparing to submit bids include:

    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • Civil Works Company (Saudi Arabia)
    • Miahona (Saudi Arabia)

    The latest phase follows the formal signing of a $347m contract between NWC and a Saudi-Chinese consortium for Northern Cluster Sewage Treatment Plants Package 10 (LTOM10) on 2 September.

    The same consortium led by United Water (China) is not planning to bid for LTOM14 and is expected to formally sign a contract for LTOM11 in the coming months, a source said.

    In April, MEED exclusively reported that the group had won the contract for package 11, which will have a combined capacity of about 440,000 cm/d.

    It is also understood that Beijing Enterprises, a bidder for North Western B Cluster (LTOM12), is not preparing to bid for package 14.

    In the meantime, the contract for LTOM12 is moving towards award, with bids currently under evaluation.

    The contract covers the construction and upgrade of seven STPs with a combined capacity of about 162,000 cm/d. As previously reported, NWC opened financial bids for the project in April.

    Future phases

    In total, the LTOM programme comprises 19 packages split into two phases. In May 2024, NWC announced it had awarded $2.5bn-worth of contracts in the first phase. Phase two of the programme includes 10 packages covering 117 treatment plants.

    In April, MEED exclusively reported that NWC had held several discussions regarding changes in scope details and potential expansions to upcoming projects. This involved “grouping some upcoming projects”.

    The request for proposals for LTOM13 was subsequently put on hold and it is now understood that this tender has likely been merged with other packages in the programme.

    According to a source, Eastern B Cluster (LTOM15) has also been cancelled and has likely been merged. LTOM15 had comprised two STPs with a total capacity of 152,000 cm/d.

    The next contract to be tendered will be Central Cluster (LTOM16), potentially in November, a source added.

    Under the original scope, LTOM16 covers the construction of 14 STPs with a total capacity of 153,000 cm/d.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19358188/main.jpg
    Mark Dowdall
  • Egyptian contractor wins Abu Dhabi Ramhan Island deal

    4 September 2026

    Egypt-headquartered contractor Rowad Modern Engineering has been awarded the main works contract for the Marina Apartments project on Ramhan Island, Abu Dhabi.

    The contract was awarded by the local firm Eagle Hills, which is led by Mohamed Alabbar, the founder and chairman of Emaar Properties.

    Rowad’s scope includes structural and architectural works, finishing, and mechanical, electrical and plumbing systems.

    The company will also deliver infrastructure works, including utility connections to external networks, testing and commissioning.

    The development comprises two residential towers offering 187 residential units.

    The works will be carried out under the consultancy supervision of local engineering firm Mirage Leisure & Development.

    The latest contract award follows Eagle Hills awarding the local firm Arabian Construction Company (ACC) an estimated AED2.5bn ($680m) construction contract to build about 500 villas at the Ramhan Island development, as reported by MEED previously.

    Located off the coast of Abu Dhabi, the Ramhan Island development spans an area of over 4 million square metres.

    The overall development includes the construction of 1,800 villas, 900 residences, a hotel and retail facilities.

    Mohamed Alabbar launched the Ramhan Island development in May 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19355437/main.jpg
    Yasir Iqbal
  • Dubai sets deadline for Jebel Ali waste-to-energy PPP

    4 September 2026

     

    Register for MEED’s 14-day trial access 

    Dubai Municipality has set a 27 September deadline for developers to submit expressions of interest (EOIs) for its planned Jebel Ali waste-to-energy (WTE) public-private partnership (PPP), according to a source.

    The greenfield facility is planned to treat up to 6,000 tonnes of municipal solid waste a day.

    The municipality is seeking international and local developers to develop, finance and operate the facility. It is planning to prequalify developers later this year before issuing a request for proposals (RFP) in the first quarter of next year, a source said.

    The Jebel Ali facility is intended to support Dubai’s waste-management strategy and its target of reducing reliance on landfill.

    Dubai Municipality is being advised by a team led by Abu Dhabi’s Tribe Infrastructure Group, with UK-headquartered Ashurst and Germany’s Fichtner also involved.

    It was confirmed to MEED that the project is separate from the planned second phase of the Warsan WTE facility, for which Dubai Municipality issued a consultancy tender in February.

    That facility will be located in Warsan 2, next to the Al-Aweer sewage treatment plant. The expansion is expected to increase waste-conversion capacity at the existing Warsan site with an estimated budget of $500m. The consultancy contract has a duration of six years.

    The original Warsan WTE plant, Dubai’s first major WTE public-private partnership (PPP) project, reached full commercial operations in 2024.

    Located in the Warsan area, the AED4bn ($1.1bn) facility treats 1.9 million tonnes of municipal solid waste annually, generating up to 220MW of thermal energy that is fed into the local grid.

    In February 2023, state utility Dubai Electricity & Water Authority (Dewa) and Dubai Waste Management Company signed the power-purchase agreement (PPA) for the project.

    Dubai Waste Management Company, the special-purpose vehicle implementing the scheme, reached financial close in June 2021 for the project.

    The Warsan project was developed under a 35-year PPP concession by a consortium comprising Dubai Holding, Dubai Aluminium, Tech Group and Itochu Corporation. 

    The main contractor was a joint venture of Belgium’s Besix Group and Hitachi Zosen Inova of Switzerland.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19354502/main.jpg
    Mark Dowdall
  • Egypt to invest $4.5bn in refinery upgrades

    4 September 2026

    Egypt is planning to invest $4.5bn in refinery upgrades, according to the country’s Minister of Petroleum and Mineral Resources, Karim Badawi.

    Egyptian refineries are operating at 80% of capacity compared with 66% two years ago, according to Badawi, who wants further increases in utilisation of existing facilities.

    “We aim to invest around $4.5bn to develop existing refineries and build new units to reduce imports and achieve self-sufficiency in refined products,” he said in a statement.

    In May, Egypt said that it had increased its fuel import budget by almost 40% for the 2026-27 fiscal year amid higher global prices driven by the Iran war, which started when the US and Israel launched an attack on Iran on 28 February.

    Brent crude prices are up about a third since the conflict started, trading at more than $90 a barrel for most of this month so far.

    Badawi said a decline in Egypt’s oil and gas production between 2021 and 2024 occurred because foreign companies were reluctant to invest in the country’s energy sector due to unpaid government debts.

    He said: “We have settled all the debt, which reached $6.1bn in June 2024. As a result, hydrocarbon exploration and production activity grew by nearly 20% this year.

    “We are now moving in the right direction to increase oil and gas output gradually.”

    Despite the ongoing push to develop projects in the country’s oil and gas sector, several key projects have seen significant delays in recent years.

    These include a $2bn hydrocracking complex package that forms part of the wider Assiut oil refinery upgrade project.

    Earlier this month, MEED revealed that mechanical completion of the hydrocracking package is now unlikely to be reached until early next year due to complications in the final stages of construction.

    The hydrocracking complex package has experienced extensive delays over several years.

    In April this year, Badawi called for work to accelerate on the Assiut oil refinery upgrade project, saying it is important for reducing the country’s spending on imported refined products.

    At the time, the oil ministry said the project was 88% complete, with trial operations planned by the end of the year.

    Assiut Oil Refining Company (ASORC), a subsidiary of state-owned Egyptian General Petroleum Corporation, is the project operator.

    France’s Technip Energies is the main contractor, performing engineering, procurement and construction work on the Assiut hydrocracking complex under a $2bn contract awarded by ASORC in February 2020.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19353521/main.jpg
    Wil Crisp
  • North Field West platform bidders get extra time

    4 September 2026

     

    QatarEnergy has granted contractors additional time to prepare bids for a key tender for the engineering, procurement, construction and installation (EPCI) of large platforms for the giant North Field gas field in Qatari waters.

    The tender, issued earlier this year, forms part of the wider North Field West (NFW) project, the third and last phase of the state enterprise’s North Field liquefied natural gas (LNG) expansion programme.

    The core scope comprises the EPCI of four production deck modules (PDMs) and associated structures. The new PDMs will increase gas production from North Field reservoirs and provide additional gas feedstock for the NFW LNG development.

    QatarEnergy has set 15 September as the deadline for technical bid submissions, while commercial bids are due on 10 November, according to sources.

    The previous deadlines for submission of technical and commercial bids were 30 August and 25 October, respectively, MEED previously reported.

    The following contractors, among others, are understood to be bidding:

    • China Offshore Oil Engineering Company (China)
    • Larsen & Toubro Energy Hydrocarbon (India)
    • McDermott (US)
    • Saipem (Italy)

    Before issuing the PDM tender, QatarEnergy awarded McDermott a contract for the EPCI of four offshore jackets that will also support gas feedstock supply for the NFW LNG project. The contract is estimated to be worth about $200m, MEED reported in January.

    North Field LNG expansion

    QatarEnergy is advancing the three phases of its estimated $40bn North Field LNG expansion project. EPC works on all three giant projects are progressing.

    QatarEnergy is understood to have committed nearly $30bn to the first two phases – North Field East (NFE) and North Field South (NFS) – which will lift Qatar’s LNG production capacity from 77.5 million tonnes a year (t/y) to 126 million t/y by 2028.

    QatarEnergy awarded the main EPC contracts for NFE in 2021. The project was intended to raise LNG output to 110 million t/y by 2025. The $13bn EPC package – covering the EPCI of four LNG trains, each with a capacity of 8 million t/y – was awarded in February 2021 to a consortium of Japan’s Chiyoda and France’s Technip Energies.

    In May 2023, QatarEnergy awarded the $10bn main EPC contract for NFS to a consortium of Technip Energies and Consolidated Contractors Company (CCC). The contract includes two LNG trains, each with a capacity of 7.8 million t/y.

    Once fully operational, the first two phases are expected to add 48 million t/y of LNG supply to the global market.

    QatarEnergy took the final investment decision on NFW this year, awarding an EPC contract estimated at $8bn to a joint venture comprising Technip Energies, CCC and Gulf Asia Contracting (GAC) in February.

    Chiyoda carried out the front-end engineering and design (feed) work for the NFW LNG project.

    The NFW scope covers the EPC of two LNG trains with a combined capacity of 16 million t/y, as well as associated facilities for gas treatment, natural gas liquids recovery and helium extraction.

    In addition to LNG, NFW is expected to produce about 175,000 barrels of oil equivalent a day of condensate, ethane and LPG.

    With all three phases now under EPC execution – and NFE scheduled for commissioning later this year – QatarEnergy is positioning itself to remain one of the world’s largest LNG suppliers over the long term.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19352006/main.jpg
    Indrajit Sen