Saudi Arabia Prequalifies Firms for Second Round of 12 GWh Battery Storage Projects

The Saudi Power Procurement Company (Principal Buyer) has prequalified 27 local and international companies to participate in the second round of utility-scale Battery Energy Storage System (BESS) projects, advancing the Kingdom's efforts to strengthen grid reliability and accelerate renewable energy integration.

The second procurement round comprises six Independent Storage Provider (ISP) projects with a combined capacity of 3,000 MW/12,000 MWh (12 GWh). Each project will have a capacity of 500 MW/2,000 MWh and provide four hours of electricity discharge.

The qualification process, launched in April 2026, attracted participation from leading global and regional energy developers, utilities, and battery technology companies.

A total of 18 companies qualified as both Managing Member and Technical Member, including Masdar, ACWA Power, Alfanar, China Longyuan Power Group, China Southern Power Grid International (CSGIHK), Cox Energy EPC, EDF, Envision Energy, International Power S.A., KEPCO, Marubeni Corporation, Nesma Renewable Energy, Nextgen Co, Pro-Power Investment, Saudi Energy Company, SPIC Shanghai Electric Power, TotalEnergies Renewables, and WahajPeak Holdings.

Seven companies qualified solely as Managing Members, namely Al Jomaih Energy and Water Company, Grupo Empresarial Enhol, Korea Western Power (KOWEPO), Power Construction Corporation of China (POWERCHINA), Sumitomo Corporation, TNB Power Generation, and TNB Renewables.

Meanwhile, Hefei Gotion High-Tech Power Energy Co. and Tesla Motors Netherlands qualified exclusively as Technical Members.

The six BESS projects are located across strategic regions of Saudi Arabia and include the Samha project in Qassim, Al-Leeth, Khulis, and Ashyrah in Makkah Province, Al-Henakiyah in Madinah Province, and Sadawi in the Eastern Province.

Each project will be implemented under a Build-Own-Operate (BOO) model, under which the successful consortium will own 100 percent equity in a special purpose vehicle (SPV) established to develop and operate the project. The SPV will sign a long-term Storage Services Agreement with the Saudi Power Procurement Company, acting as the Principal Buyer.

The projects form part of Saudi Arabia's broader strategy to expand large-scale energy storage infrastructure, improve grid flexibility, and support the country's growing renewable energy capacity.