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Saudi Arabia takes 2GW energy storage steps

1 May 2024

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) catering to the grid.

According to an industry source, the principal buyer and its consultants are 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 40 gigawatt-hours (GWh), of bess capacity by 2030.

MEED previously reported that the principal buyer conducted a market-sounding event for the project in December 2023, in line with a plan to launch the procurement process for one-fifth of this capacity this year.

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

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

The planned bess facilities are to be built near demand centres. They will boost the electricity grid's spinning reserves as more renewable energy enters its 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 planned bess IPP.

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.

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% 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.

The bid results for the three wind IPPs under round four of the kingdom's NREP are yet to be released.

Round five

In February, SPPC tendered contracts to develop four solar PV IPPs under the NREP fifth procurement round.

The following solar PV IPP projects and their capacities make up round five of the NREP:

  • 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 will procure 30% of the kingdom's target renewable energy installed capacity of 58,700MW through a public tendering process by 2030.

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

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Jennifer Aguinaldo

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