Saudi Arabia Awards $1.16B in First-Ever Standalone Battery Storage Build-Own-Operate Contracts

The Saudi Power Procurement Company (SPPC) signed contracts on August 20, 2026 for four standalone battery energy storage projects totaling 2 GW / 8 GWh, valued at more than SAR 4.35 billion (~US$1.16 billion) — the first-ever build-own-operate award of this type through a Saudi government tender. A consortium of Saudi Energy, ACWA Power, and Al Sharif Contracting and Commercial Development Company won three of the four projects (Haden and Al-Muwayh in Makkah province, Al-Khahfah in Hail province), each rated 500 MW / 2,000 MWh. A second consortium of Engie and Haji Abdullah Alireza & Co. won the fourth project, Al-Khushaybi in Qassim province, valued at roughly US$220 million. Winners enter 15-year service agreements while retaining full equity in their special-purpose vehicles.