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Saudi Arabia Shortlists 33 Bidders for Ambitious 2GW Battery Storage Tender

The Saudi Power Procurement Company (SPPC) has announced a shortlist of 33 bidders for its highly anticipated 2GW/8GWh battery energy storage system (BESS) tender.

This significant development marks a crucial step in Saudi Arabia's ambitious renewable energy goals, aiming for 50% renewable energy generation by 2030.

Tender Overview

The tender, structured under a build-own-operate model, attracted a diverse field of international players, including:

• Global Energy Giants:

  Masdar, ACWA Power, Jinko Power, EDF, and TotalEnergies.

• Key Asian Players:

  Samsung, China Energy Overseas Investment Company, China Power Engineering Consulting Group International Engineering, and China Southern Power Grid International.

Project Locations

The tender encompasses four 500 MW/2,000 MWh BESS projects strategically located across Saudi Arabia:

• Al-Muwyah BESS – Makkah Province

• Haden BESS – Makkah Province

• Al-Khushaybi BESS – Qassim Province

• Al-Kahafa BESS – Hail Province

Tender Structure

• Bidder Categories:

  21 bidders have applied to provide both BESS technology and facilities management services, while 12 are vying for asset management roles.

• Contractual Agreements:

  Winning bidders will secure 15-year storage service contracts with SPPC.

• Ownership:

  Bidders will retain full ownership stakes in their respective projects through special purpose vehicles (SPVs).

This 2GW BESS initiative will play a crucial role in supporting Saudi Arabia's renewable energy integration goals. Each 500 MW installation will operate for four hours, providing a total capacity of 2,000 MWh. These projects will enhance grid stability, improve energy efficiency, and support the reliable and cost-effective integration of renewable energy sources into the Saudi Arabian grid.