Region turns into battery storage hotspot
15 September 2023
Commentary
Jennifer Aguinaldo
Energy & technology editor
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Saudi Arabia’s Red Sea Global awarded the multi-utility contract for Amaala this week. In addition to a 250MW solar photovoltaic (PV) power plant, the contract includes renewable energy-powered water desalination and wastewater treatment plants to cater to the development.
For some, the most eye-catching part of the deal is the 700 megawatt-hour (MWh) battery energy storage system (bess) that will enable the utility infrastructure to be completely off-grid.
It is only the second project of its kind in the region, following the Red Sea Project, which in 2020-21 included a 1,300MWh battery energy storage system in its multi-utility infrastructure, the world’s largest at the time of construction.
The engineering, procurement and construction (EPC) contractor for the Red Sea multi-utility package, China’s Sepco 3, appointed fellow Chinese firm Huawei Digital Power as a sub-contractor for the battery energy storage system.
Eve Battery, a Huizhou-headquartered lithium battery manufacturer, and BYD Energy Storage, also of China, provided the project’s battery solutions.
Fast forward to 2023, Abu Dhabi state utility Emirates Water & Electricity Company (Ewec) appears to have started the procurement process for two 200MW battery energy storage facilities.
The first will be located near the existing solar PV farm in Sweihan, and the second in Madinat Zayed.
Oman, which does not plan to procure any additional gas-fired capacity, also intends to develop battery energy storage facilities to address the intermittency of its renewable energy resources.
While the Red Sea project demonstrates the China-centric nature of the battery energy storage supply chain, recent moves show that the region can potentially play a major role in developing lithium and battery storage solutions.
Australia-headquartered battery company EV Metals Group (EVM) is developing an integrated battery chemicals complex at Yanbu Industrial City in Saudi Arabia, which is expected to house a lithium chemicals plant, with a scope to include a nickel chemicals plant and a cathode active materials plant. The estimated cost for phase one of the lithium chemicals plant is $1.3bn.
EVM is understood to have signed an agreement with the Royal Commission for Jubail & Yanbu (RCJY) for the allocation of 127 hectares of land, and with Saudi Arabia’s Energy Ministry for gas and power allocation.
According to EVM, the project is “strategically located to become a global hub for the midstream processing of critical raw materials required to foster a clean energy future”.
In July, China’s Guangzhou Tinci Materials Technology disclosed plans to build a lithium-ion battery materials plant in Morocco.
The firm’s Singapore unit intends to invest as much as $280m to set up a project company in the North African country to produce lithium-ion battery materials locally, which it will then export to Europe. Morocco’s ample phosphorite ore resources underpin Tinci’s plans.
The same month, Saudi Arabian Mining Company (Maaden) signed an agreement with US-based Ivanhoe Electric to undertake exploration of the Arabian Shield zone in Saudi Arabia for high-demand minerals.
The partners will survey an area of 48,500 square kilometres in the Arabian Shield as part of the $130m deal. The Arabian Shield region – roughly the size of Switzerland – is understood to be rich in reserves of critical minerals such as copper, nickel, gold, silver and possibly lithium.
While it is still early days for these projects, they show the growing potential, and aspiration, of the region not only to deploy clean energy technologies but to produce them as well, which bodes well for dwindling hydrocarbon demand over the long term as energy transition takes hold.
Exclusive from Meed
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Oman signs 1GW battery storage agreement3 November 2026
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Consultants bid for Roshn’s north Riyadh scheme3 November 2026
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Adnoc awards contract for Ruwais Diyab unconventional gas3 November 2026
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Sultan Al-Jaber appeals for global energy security reset2 November 2026
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State utility Etihad Water & Electricity (EtihadWE) says it is monitoring seawater quality at desalination plant intake points following an oil spill off the UAE's northern coast.
In a statement, the utility said it is continuing to "implement proactive measures to safeguard the water production system" following the spread of an oil slick towards coastal areas in the emirates of Umm Al-Quwain, Ras Al-Khaimah, Ajman and Sharjah.
The spill involved the tanker Gem No. 2, which was struck by a projectile in UAE territorial waters on 9 October. The resulting oil pollution has raised concerns over potential contamination of seawater used by desalination plants along the northern coast.
EtihadWE said its measures include continuous monitoring of seawater quality at plant intake points, regular testing of produced and distributed water, and verification of compliance with approved standards before water enters the distribution network.
The utility added that the precautionary measures will not affect the continuity of water supplies to consumers in the Northern Emirates.
In an earlier update on 30 October, the Climate Change & Environment Ministry said the oil slick was concentrated off the coast of Umm Al-Quwain, extending partially towards coastal areas in Ras Al-Khaimah, Ajman and Sharjah.
The ministry said the concentration of pollution had declined significantly and that the leak had been stopped at source. However, surveying, monitoring and clean-up operations are continuing in affected coastal areas.
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The proximity of the oil slick to the Naqa'a desalination plant in Umm Al-Quwain has drawn particular attention. According to media reports, the slick approached to within approximately 2 kilometres of the facility.
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It is owned by Naqa'a Desalination Plant, a special-purpose vehicle established by Mubadala, Acwa and the former Federal Electricity & Water Authority, now known as EtihadWE.
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Oman signs 1GW battery storage agreement3 November 2026
Oman's Nama Holding, a subsidiary of Oman Investment Authority (OIA), has signed a framework agreement with China's State Grid International Development to develop battery energy storage systems (bess) with a targeted capacity of 1GW.
The agreement covers two battery storage systems, each with a capacity of 500MW, at Duqm Industrial Station and Al-Subaikhi (Ibri Solar 3) Station.
It is understood that both systems will operate at 400kV and connect to Oman's national electricity transmission grid.
The deal is part of a package of economic and investment agreements signed by OIA with Chinese institutions and companies during the Oman-China conference on 2 November. OIA put the combined value of the bess projects at approximately RO384.5m ($1bn).
The agreement comes as Oman advances plans to expand its renewable energy capacity and strengthen the electricity transmission network.
Nama Power & Water Procurement Company is also procuring a separate 950MW standalone bess programme comprising five facilities in the sultanate, as MEED exclusively reported.
The wider package of agreements, signed during Sultan Haitham Bin Tariq's state visit to China, covers sectors including renewable energy, mining, logistics, digital transformation and space technology.
In the wind energy sector, Oman's O-Green and Shanghai Electric Wind Power signed a strategic partnership to establish a joint research and development centre and wind turbine testing facility at the Mawarid turbine factory in Duqm.
The partnership will focus on adapting turbine technologies to Gulf climate conditions, supporting local manufacturing and developing green ammonia projects in Oman.
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Consultants bid for Roshn’s north Riyadh scheme3 November 2026

Saudi gigaproject developer Roshn Group has received proposals from lead design consultants for its planned flagship development in north Riyadh.
Consultants submitted proposals on 1 November for detailed design, tender documentation and construction documents for the project’s first plot.
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The second package covers phases C and D, covering about 4.7 million sq m and with more than 15,000 units.
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The scheme will add to Roshn’s existing development pipeline in Riyadh, which includes the multi-phase Sedra community. The developer is expanding its focus from single-family housing to larger mixed-use districts under its Roshn 3.0 strategy.
Last month, Roshn signed a preliminary agreement with TMG Saudi, the local subsidiary of Egypt’s Talaat Moustafa Group, to establish a joint venture to explore a separate mixed-use project in Riyadh.
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Adnoc awards contract for Ruwais Diyab unconventional gas3 November 2026

Abu Dhabi National Oil Company (Adnoc) has taken the final investment decision (FID) for the Ruwais Diyab unconventional gas development in Abu Dhabi.
The project will deliver 345 million standard cubic feet a day (scf/d) of raw gas from 2029 over a 25-year period, with the potential to reach up to 1 billion scf/d in the future.
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The DBO contract awarded by Adnoc to Jereh is understood to cover the second phase of the Ruwais Diyab unconventional gas development. The tendering exercise for the project started last year.
“The development [of Ruwais Diyab] follows a disciplined programme of technical studies, field testing and subsurface analysis, delivered by Adnoc Onshore under a DBO model, to reduce development risk,” Adnoc said in its statement on 2 November.
“It brings together advanced subsurface expertise, artificial intelligence-enabled drilling and completion technologies and integrated project delivery capabilities to support the efficient and responsible development of domestic gas resources,” it added.
The UAE holds the seventh-largest gas reserves in the world, with 298 trillion standard cubic feet (scf) of conventional gas reserves and 160 trillion scf of unconventional gas resources.
Adnoc holds the majority 60% stake in the Ruwais Diyab concession, the majority of which is situated onshore, while France’s TotalEnergies holds the other 40% interest.
The agreement to explore, appraise and develop the area’s unconventional gas resources was signed by Adnoc and TotalEnergies in November 2018. The partners announced first gas output at the concession, presumably on a pilot basis, two years later.
Adnoc has set a target of producing 1 billion scf/d of gas from the Ruwais Diyab concession by 2030, in line with its target to achieve self-sufficiency in overall gas production by the end of this decade.
“Ruwais Diyab’s additional unconventional gas supply will strengthen Adnoc’s gas value chain, including Adnoc Gas’s ability to meet rising domestic and international customer demand,” Adnoc said in its 2 November statement.
“Ruwais Diyab advances Adnoc’s ambition to establish a scalable unconventional gas business and create a platform for future growth,” the company added.
Ruwais Diyab first phase
Adnoc awarded the contract for engineering, procurement and construction (EPC) on the first phase of the unconventional gas development programme to local contractor Astra Engineering & Construction in early 2025, according to regional project tracker MEED Projects.
The first phase aims to achieve a gas output level of 100 million scf/d. The main structures to be built in the first phase include a central processing facility, two well pads, interconnecting well fluid pipelines, gas export pipelines and tie-in stations.
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Sultan Al-Jaber appeals for global energy security reset2 November 2026
The global energy industry must fundamentally rethink how it builds, protects and delivers secure energy, following a year of unprecedented disruption that has exposed critical vulnerabilities in international supply chains, Sultan Ahmed Al-Jaber, the UAE’s Industry & Advanced Technology Minister and managing director and group CEO of Abu Dhabi National Oil Company (Adnoc Group) has said.
Delivering the opening address at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) 2026 on 2 November, Al-Jaber said preparedness is essential to navigating an increasingly uncertain global landscape.
“For decades, energy security was a question for specialists. It was debated in rooms like this, by people like us, in a language that few needed to learn. This year, every family, every farmer, every industry and every business owner is asking about it, and our collective job is to find the answers.”
Noting that it is not possible to control every situation and remove every risk, Al-Jaber said: “The choices we make today will determine the energy landscape a decade from now. Let’s apply the lessons we have learnt. Let’s build capacity and everything that supports it. Let’s forge partnerships that hold when it matters. And if you want a partner you can count on, you are in the right room, in the right city, in the right country. Because when it counts the most, you can count on the UAE.”
Setting out the case for a more resilient energy system, Al-Jaber said that since the disruption in the Strait of Hormuz, nearly 1 billion barrels of crude have been drained from inventories. He noted that in some markets, stocks of diesel are at their lowest seasonal level in 35 years, while others are facing a supply gap for liquefied natural gas (LNG) of 600 billion cubic feet. “Simply put, the world has eroded its supply buffers,” Al-Jaber said.
“But supply is only half the story. The other half is delivery. Before the disruption, logistics were less than 5% of the cost of a barrel. Today, they are more than 30%. In short, energy security is not only measured at the point of production. It is now also measured at the point of delivery.”
Mitigation steps
Al-Jaber outlined five steps the energy industry can take to reduce the impact of future shocks. “First, accessible supply. We need expanded strategic storage, larger stockpiles of products and flexible refining capacity closer to consumer markets.
“Second, routes to market. Supply only counts when it arrives. Infrastructure must be built before it is needed and enabled by advanced logistics.
“Third, operational intelligence. Moving from automated operations to intelligent energy systems that anticipate risk, optimise performance and drive down the cost of every barrel.
“Fourth, capital follows confidence. Policy must create it, finance must accelerate it and insurance must keep trade moving.
“Fifth, which is in my view the most important, is people. Because behind every barrel that arrives is a person who made sure it did. Systems don’t carry responsibility, people do.”
Photo credit: Adipec via LinkedIn
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