27 Companies Race for Saudi Arabia's 12 GWh BESS Projects

[Saudi Arabia accelerates its clean energy transition with a new 12 GWh utility-scale battery storage program.]

Saudi Arabia Advances Massive Battery Storage Expansion with 27 Prequalified Companies

Saudi Arabia has taken another major step toward strengthening its electricity network by prequalifying 27 local and international companies for the second round of its utility-scale Battery Energy Storage System (BESS) program. Announced by the Saudi Power Procurement Company (Principal Buyer), the initiative is designed to improve grid reliability while supporting the Kingdom's accelerating renewable energy ambitions.

Published on July 1, 2026, the announcement marks continued progress in Saudi Arabia's large-scale energy storage strategy, with six new Independent Storage Provider (ISP) projects planned across multiple regions.

What the Second BESS Round Involves

The second procurement round includes six utility-scale battery storage projects with a combined capacity of 3,000 MW / 12,000 MWh (12 GWh).

Each project will be developed with a capacity of 500 MW / 2,000 MWh, enabling up to four hours of electricity discharge. The storage systems are expected to enhance grid flexibility, stabilize power supply, and facilitate greater integration of renewable energy into Saudi Arabia's national electricity network.

The qualification process, launched in April 2026, attracted strong interest from international utilities, renewable energy developers, infrastructure investors, and battery technology providers.

Prequalified Companies: Who Made the List

Qualified as Both Managing Member and Technical Member

• 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
• WahajPeak Holdings
• Qualified as Managing Member Only
• Al Jomaih Energy and Water Company
• Grupo Empresarial Enhol
• Korea Western Power (KOWEPO)
• Power Construction Corporation of China (POWERCHINA)
• Sumitomo Corporation
• TNB Power Generation
• TNB Renewables
• Qualified as Technical Member Only
• Hefei Gotion High-Tech Power Energy Co.
• Tesla Motors Netherlands
• Where the Six Projects Will Be Built

The battery energy storage facilities will be distributed across strategic locations in Saudi Arabia:

• Samha – Qassim Province
• Al-Leeth – Makkah Province
• Khulis – Makkah Province
• Ashyrah – Makkah Province
• Al-Henakiyah – Madinah Province
• Sadawi – Eastern Province

The geographic spread is intended to strengthen electricity infrastructure across multiple regions while improving the stability of the national transmission system.

How the Build-Own-Operate Model Works

All six projects will be delivered under a Build-Own-Operate (BOO) framework. Under this model, each successful consortium will establish a special purpose vehicle (SPV) that will own 100% of the project, oversee its development, and manage long-term operations.

The SPV will enter into a long-term Storage Services Agreement with the Saudi Power Procurement Company, which will act as the Principal Buyer for the storage capacity.

This procurement structure is designed to attract private investment while ensuring reliable, long-term energy storage services for the Kingdom's power system.

Why This Matters for Saudi Arabia's Grid and Vision 2030

Expanding utility-scale battery storage has become a central component of Saudi Arabia's broader energy transition strategy. As renewable generation continues to grow, large-scale storage systems will play an increasingly important role in balancing electricity supply and demand, improving grid resilience, and reducing dependence on conventional generation during peak periods.

The second BESS round also demonstrates Saudi Arabia's continued ability to attract leading global energy companies and technology providers, reinforcing its position as one of the Middle East's fastest-growing markets for energy storage infrastructure.

With prequalification now complete, the next phase will focus on competitive bidding and project awards, bringing the Kingdom closer to adding another 12 GWh of battery storage capacity and supporting its long-term renewable energy and Vision 2030 objectives.