The Saudi Power Procurement Company (SPPC) “Principal Buyer”, under the supervision of the Ministry of Energy, has commenced the qualification process for the first group of Battery Energy Storage System (BESS) projects, consisting of four projects.
Each project will be developed under a build-own-operate (BOO) model, with the successful bidder holding 100 per cent equity in the special purpose vehicle (SPV) set up to develop and operate the Independent Storage Provider (ISP) project. Each SPV will enter into a 15-year Storage Services Agreement with SPPC.
The combined capacity of Group 1 BESS projects is 2000 MW / 4 Hrs (8000 MWh), comprising the following projects:
- The 500MW/4Hrs Al-Muwyah BESS ISPSite Location: Makkah province, KSA.
- The 500MW/4Hrs Haden BESS ISPSite location: Makkah province, KSA.
- The 500MW/4Hrs Al-Khushaybi BESS ISPSite location: Qassim province, KSA.
- The 500MW/4Hrs Al-Kahafa BESS ISPSite location: Hail province, KSA.
The newly launched energy storage program enables reaching 50% of renewable energy in the Kingdom’s energy mix by 2030, and enhances the reliability and resilience of the electric power system.
