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Riyadh meets battery storage bidders

18 February 2025

Principal buyer Saudi Power Procurement Company (SPPC) met with firms that have been prequalified to bid for the contracts to develop the first phase of independent battery energy storage system (bess) projects in Saudi Arabia.

MEED understands SPPC held a bidders conference on 17 February and has scheduled project site visits on 19 February. 

The group one bess – also called independent storage provider (ISP) – projects will be developed using a build, own and operate (BOO) model.

They comprise the following schemes with a total combined capacity of 2,000MW, which equates to at least four hours or 8,000 megawatt-hours (MWh) of storage:

  • Al-Muwyah bess ISP: 500MW (Mecca)
  • Haden bess ISP: 500MW (Mecca) 
  • Al-Khushaybi bess ISP: 500MW (Qassim)
  • Al-Kahafa bess ISP: 500MW (Hail)

The principal buyer expects to receive the letters of intention by April and the proposals by 2 June, as MEED reported.

The following 21 companies have been prequalified to bid for the contracts as managing or technical partners:

  • Abu Dhabi Future Energy Company (Masdar, UAE)
  • Abu Dhabi National Energy Company (Taqa, UAE)
  • Acwa Power (local)
  • Akaysha Energy (Australia)
  • China Energy Overseas Investment Company (CEECOIC, China)
  • China Power Engineering Consulting Group International Engineering (China)
  • China Southern Power Grid International (HK) Company (CSGIHK)
  • Cox Energy (Spain)
  • EDF (France)
  • Envision Energy (China)
  • FRV-X Renewable (Spain)
  • International Power (Engie, France)
  • Jera Nex (Japan) 
  • Jinko Power (Hong Kong) 
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Marubeni Corporation (Japan)
  • Pro-Power Investment (China)
  • Samsung C&T Corporation (South Korea)
  • SPIC Huanghe Hydropower Development Company (China)
  • TotalEnergies Renewables (France)
  • X-Elio Energy 

The following firms may bid as technical partners:

  • Al-Gihaz Holding Company (local)
  • Al-Jomaih Energy & Water Company (local)
  • Alfanar Company (local)
  • FAS Energy (local)
  • GCL Intelligent Energy (Suzhou, China)
  • Gulf Energy Development Public Company (Thailand)
  • Nesma Renewable Energy (local)
  • Posco International Corporation (South Korea)
  • Power Construction Corporation of China (PowerChina) 
  • Saudi Electricity Company (local)
  • Shell Overseas Investment (UK)
  • Sumitomo Corporation (Japan)

The successful bidders will hold 100% equity in the special purpose vehicle (SPV) set up to develop and operate each ISP.

The SPVs will enter into a 15-year storage services agreement with the principal buyer.

According to SPPC, the energy storage programme will enable the kingdom’s energy mix to contain 50% renewable energy by 2030 while enhancing the reliability and resilience of the electric power system.

It is understood that SPPC plans to procure up to 10,000MW of bess capacity by 2030.

The planned bess facilities are to be built near demand centres, to help boost the electricity grid's spinning reserves as more renewable energy enters the electricity production mix. 

Bess comprises rechargeable batteries that can store and discharge energy from various sources when needed. It is one of the key solutions being considered to address the intermittency of renewable energy sources.

US/India-based Synergy Consulting is advising SPPC on the energy storage capacity procurement programme.

EPC programme

In addition to this programme, Saudi Electricity Company (SEC( has also been procuring bess capacity using an engineering, procurement and construction (EPC) model.

The kingdom's largest battery energy storage system was connected to the electricity grid in January.

The 500MW bess plant is located in Bisha, in Saudi Arabia's southwestern Asir Province. The plant has a nameplate capacity of 2.615 gigawatt-hours (GWh) but is rated at 2,000 megawatt-hours (MWh).

A consortium of State Grid of China and the local Alfanar Company built the plant, which features 122 prefabricated storage units, designed and supplied by China’s BYD.

Another local contractor, Algihaz Holding, last year won an EPC contract to build three facilities, which will have a total combined storagecapacity of 7.8 gigawatt-hours (GWh) across three locations in Saudi Arabia.

China's Sngrow will supply the battery storage units, which will be installed in Najran, Madaya and Khamis Mushait. Each plant is expected to have a capacity of 2.6GWh.

In January, Alfanar and BYD confirmed winning a contract to build five battery energy storage system (bess) plants with a total combined installed capacity of up to 2,500MW, equivalent to at least 10,000 megawatt-hours (MWh).

China's BYD Auto won the contract for the design; supply; supervision of installation, testing and commissioning; and maintenance of the bess plants.

The planned facilities, each with a capacity of 500MW or about 2,000MWh, are located in – or in proximity to – the following cities and load centres:

  • Riyadh
  • Qaisumah
  • Dawadmi
  • Al-Jouf
  • Rabigh.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13402320/main.gif
Jennifer Aguinaldo

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