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The engineering, procurement and construction (EPC) contracts for the three energy storage system projects recently awarded in Saudi Arabia are estimated to be worth over $800m.

National Grid Saudi Arabia awarded Riyadh-based investment group Algihaz Holding the contract to build the facilities, which will have a total combined capacity of 7.8 gigawatt-hours (GWh) across three locations in Saudi Arabia.

In July, China-headquartered Sungrow announced that it had signed three “landmark energy storage contracts” with Algihaz Holding, amounting to the “world’s largest grid-side storage order”.

According to Sungrow, each project will have a capacity of 2.6GWh, totalling 7.8GWh.

The three storage projects are located in Najran, Madaya and Khamis Mushait in Saudi Arabia. Sungrow added that deliveries are expected to commence this year, and the grid connection is anticipated by 2025.

A source familiar with the projects’ tendering process said the total contract value would have ranged between $750m and $900m.

Based on the agreement with Algihaz, Sungrow will deliver over 1,500 units of its latest Power Titan 2.0 liquid-cooled storage system.

The system’s integrated AC storage design and high energy density will save 55% of the required land area, according to reports citing a Sungrow spokesperson.

Saudi Arabia is pursuing both the EPC and independent power producer (IPP) contracting models to procure energy storage capacity for grid balancing and support, a source close to the project tells MEED.

MEED reported in May that the principal buyer, Saudi Power Procurement Company (SPPC), is several months away from seeking interest from developers for the contract to develop and operate the 2,000MW first phase of a battery energy storage system (bess) project.

According to an industry source at the time, SPPC and its consultants were finalising the project sites, and the start of the procurement process could be “a few months away”.

SPPC plans to procure up to 10GW, equivalent to 40GWh, of bess capacity by 2030.

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 planned bess IPP projects.