Saudi Arabia’s Saudi Power Procurement Company (SPPC), the sole entity tasked with purchasing electricity and capacity from within the Kingdom, has officially initiated the qualification process for a major 2GW/8GWh battery energy storage system (BESS) tender.

This announcement, made on Monday, November 4, marks a significant step towards the country’s ambitious renewable energy goals under its Vision 2030 roadmap.

The tender seeks bids for the development of four independent storage projects (ISPs), each with a capacity of 500MW and 2,000MWh of storage.

These projects are integral to Saudi Arabia’s plan to meet its renewable energy target of a 50% share in its electricity mix by 2030.

The BESS facilities will be awarded under a build-own-operate (BOO) model, with successful bidders retaining 100% equity in special purpose vehicle (SPV) companies set up to handle the development and long-term operation of the projects.

This initiative aligns with Saudi Arabia’s broader National Renewable Energy Program (NREP), which is currently in its fifth auction round, focusing on large-scale solar energy.

The recent NREP auctions have shortlisted bids for four solar projects, totaling 3.6GW of generation capacity.

This combination of solar power and energy storage will play a crucial role in ensuring a stable and sustainable electricity supply, especially given the intermittent nature of renewable energy sources like solar.

The BESS projects will be spread across four regions in Saudi Arabia: two in Makkah Province, one in Qassim Province, and another in Hail Province.

The tender is seen as the first phase of several planned solicitations designed to help the country achieve its ambitious renewable energy targets.

To participate in the tender, bidders must meet strict eligibility criteria. Managing Members must have experience in project development and financing, or be significant shareholders in operational independent power producer (IPP) or BESS projects.

They must have been involved in at least one project with a capacity of 500MW in operation in the last 15 years or a renewable energy project of at least 200MWac capacity.

Alternatively, they must have experience with at least 50MW of BESS projects in the last five years. Technical Members are also required to have a proven track record in designing, procuring, constructing, and operating IPP or BESS projects.

In terms of financial requirements, Managing Members must have a tangible net worth of at least US$100 million, while Technical Members must meet a minimum net worth of US$50 million.

The BESS program will play a crucial role in helping Saudi Arabia transition from its heavy reliance on fossil fuels to a more diversified energy mix.

Energy Minister Prince Abdulaziz bin Abdullah Al Saud has highlighted that the government plans to invest US$293 billion in power and energy projects by 2030, with a major portion directed toward renewable energy and transmission infrastructure.

This strategic push is part of Saudi Arabia’s broader efforts to modernize its energy sector, reduce its carbon footprint, and position itself as a leader in clean energy.

The country has already unveiled plans for large-scale battery storage systems in various high-profile developments, including a 536MW/600MWh battery system for the Neom smart city and a solar-plus-storage off-grid project for a mega tourism resort on the Red Sea coast.

As part of these efforts, Chinese BESS manufacturer Hithium is also planning to establish a factory in Saudi Arabia, in partnership with the Saudi engineering firm MANAT, with an annual production capacity of 5GWh.

This move signals a growing interest in the Kingdom’s energy sector, positioning Saudi Arabia as a key player in the global battery storage market.