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
Related Articles
  • Aramco and Emerson partner for corrosion management

    3 June 2026

    Saudi Aramco has entered into a partnership with US-based industrial automation provider Emerson to jointly develop corrosion management systems.

    As part of the corrosion research and development collaboration, Aramco will “combine its expertise and intellectual property with Emerson’s advanced corrosion solutions to digitalise and transform corrosion management”, Emerson said in a statement.

    For Aramco, corrosion management is a strategic priority that is closely linked to operational performance, safety and environmental stewardship. Continuous corrosion monitoring can replace labour-intensive and potentially hazardous manual inspections while providing a reliable stream of digital data to support decision-making and asset integrity management.

    The collaboration builds on the companies’ existing relationship. In May, Emerson announced the deployment of an artificial intelligence-driven optimisation system for Aramco.

    The current phase of that initiative focuses on expanding a hybrid modelling approach for hydrocracker units across Aramco’s operations. The expansion is expected to improve model accuracy while demonstrating the scalability and robustness of the AI-driven optimisation strategy across the company’s asset base.

    Emerson has steadily expanded its presence in Saudi Arabia over the past 16 years. Key milestones include the opening of facilities in Jubail, Dammam and Dhahran, as well as the launch of a manufacturing hub at King Salman Energy Park (Spark) in 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17091834/main4428.jpg
    Indrajit Sen
  • Iranian drones hit Kuwait International airport’s Terminal 1

    3 June 2026

    Kuwait International airport was struck by a fresh wave of hostile drone attacks on 3 June. The drones caused significant structural damage to Terminal 1 and wounded several individuals.

    Brigadier General Saud Abdulaziz Al-Otaibi, official spokesman for the Ministry of Defence, blamed the strikes on “criminal Iranian aggression”. He confirmed that the injured had been evacuated for medical care and stated that the armed forces remain in a state of complete readiness to secure the state.

    The incident is the third major drone strike on the hub in recent months. On 1 April, a drone strike hit fuel tanks managed by Kuwait Aviation Fuelling Company, sparking massive fires. On March 28, another multi-drone raid severely damaged the airport’s primary radar systems.

    The airport is being expanded with the construction of a new terminal, and works on the project are expected to be completed by 2027. It consists of three packages.

    These are:

    • Package 1: Main works – $4,329m
    • Package 2: Multistorey car park building, connection roads, bridges and landscaping works – $550m
    • Package 3: Aircraft parking, runways and service buildings – $950m

    Turkiye’s Limak Holding is executing the main works.

    The terminal building was designed by Foster+Partners and Gulf Consult.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17089683/main.gif
    Colin Foreman
  • Consortium signs PPA for Taweelah C power plant

    3 June 2026

    Emirates Water & Electricity Company (Ewec) has confirmed it has signed a power-purchase agreement (PPA) with a developer consortium for the Taweelah C independent power producer (IPP) project.

    The agreement, which will run through to 2050, was signed with Abu Dhabi National Energy Company (Taqa), Al-Jomaih Energy & Water Company (Saudi Arabia) and Sembcorp Industries (Singapore), the utility said in a statement.

    Taqa will own a 60% stake in the project, with the international consortium holding 40%. The ADX-listed company will also own 40% of the project’s operations and maintenance company, while the international consortium will own 60%.

    Last month, MEED exclusively revealed that the winning consortium had been selected for the project, with the PPA initially expected to be signed in mid-May.

    It is understood that China Energy Engineering Corporation (CEEC) will be the engineering, procurement and construction contractor.

    The combined-cycle gas turbine plant will have a capacity of about 2.5GW. It will be located at the Al-Taweelah power and desalination complex, about 50 kilometres northeast of Abu Dhabi city.

    Taweelah C is part of Ewec’s wider programme to support the UAE’s Net Zero by 2050 Strategic Initiative and the Abu Dhabi Department of Energy’s Clean Energy Strategic Target 2035.

    Ewec plans to raise solar power capacity to 18GW and wind capacity to 2.6GW by 2035, while reducing the carbon intensity of its power generation by more than half compared with 2019.

    The Taweelah C IPP is now expected to start commercial operations in 2029. The facility had previously been scheduled to begin commercial operations in the fourth quarter of 2028.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17089163/main.jpg
    Mark Dowdall
  • Local contractor wins Oman water transmission contract

    3 June 2026

     

    Local contractor Al-Jesr United has won the main engineering, procurement and construction contract to reinforce Oman’s Sur water transmission system.

    The contract, awarded by state-owned utility Nama Water Services (NWS), forms part of a project to improve the reliability of potable water supply to Sur, a coastal city about 200 kilometres southeast of Muscat.

    The scheme, estimated to cost $80m, is designed to strengthen the network’s resilience during peak-demand periods and emergencies.

    The scope of work includes upgrading the pumps at the Sur DP Pump Station with variable frequency drive units and replacing ductile iron pipes and fittings within the facility. It also covers about 17km of new transmission pipelines.

    According to regional projects tracker MEED Projects, at least five local firms submitted commercial bids for the contract, which was tendered in August 2025.

    These include:

    • Al-Jesr United
    • Al-Rafaa Trading & Contracting
    • Gulf Petrochemical Services & Trading
    • Professionals Trading
    • Sarooj Construction Company

    In June 2024, NWS awarded a $1.3m contract for the project’s design and construction supervision to Muscat-headquartered Ibn Khaldun Almadaen Engineering Consultants.

    Sur is home to one of the sultanate’s key desalination plants, which supplies potable water to communities across eastern Oman. 

    The water transmission project will support network expansion in areas such as Al-Aigah and Ahiae, as the existing ductile iron pipeline serving Wilayat Sur is no longer sufficient to meet current and future demand.

    Construction is expected to start in the third quarter of 2026 and take about two years to complete.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17088454/main.jpg
    Mark Dowdall
  • Syria to tender gas plant contract

    3 June 2026

     

    Syria is preparing to tender a project to rehabilitate the Conoco gas plant in Deir ez-Zor province in the east of the country within the next 10 weeks, according to a document published by the US-Syria Business Council.

    The gas plant was reclaimed by Syria’s military during an offensive in January this year.

    It is Syria’s largest gas plant, but is severely damaged and cannot be operated in its current condition.

    Before the country’s civil war, it processed 13 million cubic metres of gas a day.

    The US-based companies ConocoPhillips and Novaterra signed a memorandum of understanding with the state-owned Syria Petroleum Company (SPC) to restore the facility in November last year.

    Syria is currently in the midst of a push to ramp up oil and gas production and establish itself as a regional energy hub.

    Earlier this year, Yousef Qiblawy, chief executive of SPC, said that his organisation was aiming to double national oil production before 2027 and boost output to 800,000 barrels a day by the end of 2029, not including offshore production.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17088320/main.jpg
    Wil Crisp