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BESS Prices Hit New Lows in 2025 as Saudi Arabia’s SEC Tenders Two 500MW Projects

Battery Energy Storage System (BESS) prices outside China have reached new record lows in 2025, as highlighted by the latest tender results from Saudi Electricity Company (SEC) for two large-scale projects in Tabuk and Hail. Each project, sized at 500 MW/4 hours, saw HiTHIUM Energy Storage winning the ESS scope and Alfanar Projects securing the EPC contracts.

For Tabuk, the ESS bid landed at approximately $71.63/kWh and EPC at $46.54/kWh, while Hail saw slightly higher figures at $73.19/kWh and $47.03/kWh respectively. Total turnkey costs thus range between $118-120/kWh, showcasing a significant drop—around 56% lower than the December 2024 global average of $165/kWh reported by BNEF.

These projects reflect a rapid convergence between global and Chinese BESS pricing, with costs nearing China's domestic low of $65/kWh. The Middle East, particularly Saudi Arabia, is emerging as a critical market where large deployment scales and fast project timelines are enabling highly competitive pricing.

While the final prices are pending successful evaluation, the trend underscores growing international competitiveness and the spread of China's low-cost battery advantage to global markets, setting a new benchmark for future energy storage projects worldwide.