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Saudi Arabia plans 10GW of battery capacity

23 January 2024

Saudi Power Procurement Company (SPPC) plans to procure up to 10GW, equivalent to 40 gigawatt-hours (GWh), of battery energy storage system (bess) capacity by 2030.

MEED understands the principal buyer conducted a market-sounding event for the project in December, in line with a plan to launch the procurement process for one-fifth of this capacity this year, according to sources familiar with the plan.

The 2GW first phase of the project entails multiple battery energy storage systems to be built across multiple locations, with individual capacities ranging from 50MW to 300MW each. 

MEED reported that the prequalification process for the contract to develop and operate bess facilities could start this year.

The project will be developed using an independent power producer (IPP) model.

The first-phase project may or may not become part of round six of the kingdom's National Renewable Energy Programme (NREP), which currently involves the development of wind IPPs, as MEED previously reported.

Bess comprises rechargeable batteries that can store energy from various sources and discharge it 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 battery energy storage system IPP.

Growing renewable capacity

Saudi Arabia, through SPPC, publicly tendered over 6,600MW of renewable energy capacity under the first four rounds of NREP between 2017 and 2023.

Solar photovoltaic (PV) IPP projects account for 66 per cent of the total capacity, or about 4,400MW. Wind IPPs account for the remaining capacity.

At least three of these schemes are now operational: the 300MW Sakaka solar PV, the 400MW Dumat al-Jandal wind IPP and the Rabigh solar IPP projects.

Found five

SPPC is preparing to issue the request for proposals for the contracts to develop and operate four solar PV IPP projects with a total combined capacity of 3,700MW before the end of the first quarter of this year. The projects make up NREP's fifth round.

The projects and their capacities are:  

  • Al-Sadawi solar IPP (Eastern Province): 2,000MW
  • Al-Mas solar IPP (Hail): 1,000MW
  • Al-Hinakiyah 2 solar IPP (Medina): 400MW
  • Rabigh 2 solar IPP (Mecca): 300MW

SPPC is procuring through a public tendering process 30 per cent of the kingdom's target renewable energy installed capacity of 58,700MW by 2030.

Saudi sovereign wealth vehicle, the Public Investment Fund, is procuring the rest through the Price Discovery Scheme.

Main image: Pixabay

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Jennifer Aguinaldo

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