Saudi Arabia has announced the pre-qualification of bidders for its 2,000 MW/8000 MWh battery energy storage systems (BESS) tender under its renewable energy expansion strategy.

The Saudi Power Procurement Company (SPPC) is administering the tender, which encompasses four projects of 500 MW each:

• Al-Muwyah BESS ISP: 500 MW/1000 MWh in Makkah Province
• Haden BESS ISP: 500 MW/1000 MWh in Makkah Province
• Al-Khushaybi BESS ISP: 500 MW/1000 MWh in Qassim Province
• Al-Kahafa BESS ISP: 500 MW/1000 MWh in Hail Province

The tender garnered significant interest, with SPPC receiving 52 bids. Following an evaluation, 33 companies were pre-qualified and categorized into two roles:

• Managing and Technical Category
  Notable international and regional players include Masdar, TAQA, ACWA Power Company, Akaysha Energy, China Energy Overseas Investment Company, China Power Engineering Consulting Group International Engineering, China Southern Power Grid International, Cox Energy, Electricité De France, Envision Energy, FRV-X Renewable, International Power, JERA NEX, Jinko Power, Korea Electric Power Corporation, Marubeni Corporation, Pro -Power Investment, Samsung C&T Corporation, SPIC Huanghe Hydropower Development, Total Energies Renewables, and X-ELIO Energy.
• Managing-Only Category
  Key participants include Al Gihaz Holding Company, Al Jomaih Energy & Water, Alfanar, FAS Energy, GCL Intelligent Energy, Gulf Energy Development, Nesma Renewable Energy, POSCO International, Power Construction Corporation of China, Saudi Electricity Company, Shell Overseas Investment, and Sumitomo Corporation.

The projects, developed under the build-own-operate model, will involve special purpose vehicles (SPVs) established by the successful bidders. Each SPV will sign a 15-year storage services agreement with SPPC, securing long-term commitments to enhance grid stability and support renewable energy integration.

This tender is part of Saudi Arabia’s broader efforts to transform its energy mix, aiming to derive 50% of electricity from renewable sources by 2030.

SPPC recently finalized power purchase agreements for three solar photovoltaic projects totaling 1.7 GW as part of its National Renewable Energy Program.

In November 2024, SPCC selected a consortium of developers comprising Abu Dhabi Future Energy Company (Masdar), KEPCO, and GD Power Development Company in November to commission the 2 GW Al Sadawi Solar Project in Saudi Arabia.