According to TrendForce, amidst the global energy transition, Saudi Arabia is accelerating the realization of its renewable energy strategic goals. Under the supervision of the Ministry of Energy, the Saudi Electricity Company (SEC) has announced the launch of the second phase of its battery energy storage system (BESS) project, with a total investment exceeding 6.73 billion Saudi Riyals and a planned total capacity of 2.5GW/10GWh.
Project Details
Reportedly, the project covers five key regions: Riyadh, Qaisumah, Dawadmi, Aljouf, and Rabigh. Construction will proceed simultaneously across these locations to increase the power reserve levels in different operating areas, provide operational flexibility, thereby enabling rapid response to changes in electricity demand, improving energy distribution efficiency, and reducing operating costs.
Specifically, each location will host an energy storage system with a capacity of 500MW/2000MWh, totaling 2.5GW/10GWh. This scale makes the project one of the largest single-site grid-scale energy storage projects globally. SEC has signed contracts with BYD and Saudi Alfanar Projects to supply the relevant products for the project.
This project is integrated into the National Renewable Energy Program, contributing to improved energy efficiency, enhanced grid performance, and increased reliability. It aims to support the strategic goal of increasing the installed capacity of renewable energy in Saudi Arabia's power structure to approximately 50% by 2030.
Market Development
Saudi Arabia, the largest economy in the Middle East, has been committed to diversifying its energy mix and promoting sustainable development in recent years. The "Vision 2030" policy strategy clearly outlines Saudi Arabia's firm determination for energy transition. Within this grand strategic framework, Saudi Arabia has set a target of achieving 50% electricity generation from renewable sources by 2030. To support the realization of this goal, energy storage systems, as crucial supporting facilities for the stable grid connection of renewable energy, are highly anticipated.
Saudi Arabia's Energy Minister, Prince Abdulaziz bin Salman, stated at an event that Saudi Arabia plans to deploy 48GWh of battery energy storage systems by 2030. The construction of large-scale energy storage facilities will ensure the efficient and stable integration of renewable energy generation into the national grid, accelerating Saudi Arabia's energy structure towards a green and sustainable direction.
According to Saudi Arabia's plans, the installed capacity of energy storage will show a rapid growth trend. In the short term, Saudi Arabia plans to have 8GWh of energy storage projects in operation by 2025, and this figure will increase to 22GWh by 2026.
In the long term, with the planning and implementation of a series of energy storage projects, Saudi Arabia is expected to further expand its energy storage installed capacity within the next decade, consolidating its important position in the global energy storage market. Based on the currently announced energy storage capacity and planned projects, Saudi Arabia is highly likely to become the third-largest energy storage market globally, after China and the United States.
Enterprise Competition
To date, Saudi Arabia has achieved significant milestones in the energy storage sector. With the official launch and operation of the Bisha Energy Storage Project, Saudi Arabia has successfully entered the ranks of the top ten global energy storage markets. The Bisha Energy Storage Project has a capacity of 2GWh, featuring 488 advanced battery containers and a storage capacity of 500MW, capable of supplying power for four hours continuously. This project plays a crucial role in power supply management by charging during low-demand periods and discharging during peak demand, effectively enhancing the flexibility of power supply.
In addition, Saudi Arabia has already tendered a total of 26GWh of energy storage projects, which are currently in various stages of development. Many internationally renowned companies are participating in the construction of Saudi Arabia's energy storage projects. In the pre-qualification process for the first battery energy storage system procurement launched by the Saudi Power Procurement Company (SPPC) in early November 2024, a total of 33 companies passed the tender qualification review. These include well-known enterprises from the Middle East and overseas, such as Dubai-based Masdar, Saudi Arabia's ACWA Power, and France's EDF and TotalEnergies.
Furthermore, leading companies in the renewable energy and battery energy storage sectors from China, South Korea, and Japan are also among the qualified bidders. Numerous outstanding enterprises are vying for opportunities in the Middle East, resulting in fruitful international cooperation and injecting diverse technological and financial support into Saudi Arabia's energy storage projects.
The launch of this 2.5GW grid-scale energy storage project is a significant step in Saudi Arabia's energy storage development blueprint. It not only provides strong momentum for Saudi Arabia to achieve its 2030 renewable energy goals but will also drive the development of related industrial chains and attract more investment and technology into the Saudi energy storage market. With the advancement of renewable energy targets, the future capacity of Saudi Arabia's energy storage market is expected to continue to grow significantly.
Source：https://mp.weixin.qq.com/s/K9slqNQiO1gN8PWvcxuAYQ
