Image: Hithium
Saudi Electricity Company (SEC) has awarded contracts for 1 GW/4 GWh of battery energy storage systems (BESS) across two sites in the Kingdom, marking another milestone in Saudi Arabia’s large-scale storage build-out.
The projects, Tabuk-1 and Hail-2, were officially announced on August 17. Chinese battery manufacturer Hithium will supply storage systems valued at $179 million for Tabuk-1 and $183 million for Hail-2, alongside combined operations and maintenance (O&M) contracts worth $1.63 million, securing a long-term “supply-plus-service” presence. Saudi contractor Alfanar Projects will execute construction works, with contracts valued at $1.16 million (Tabuk-1) and $1.18 million (Hail-2).
The tenders, launched in April 2025, concluded after a four-month evaluation process. According to SEC, the systems will prioritize load shifting—charging during off-peak hours and discharging during periods of high demand—to reduce system costs and maximize renewable energy utilization. Additional capacity will support grid stability services such as black start, frequency regulation, and voltage control at the interconnection point.
This 1 GW award forms part of SEC’s broader ambition to scale up storage nationwide. Earlier this year, the utility launched a second phase of deployment totaling 2.5 GW/10 GWh across five regions, with investments exceeding $1.79 billion. In parallel, offtaker Saudi Power Procurement Company (SPPC) is advancing an independent power producer (IPP) track for storage, with 2 GW of BESS under a build-own-operate model now in the prequalification and RFP stages.
Momentum in the sector is rapidly accelerating. By mid-2025, Saudi Arabia had around 13 GWh of grid-scale BESS in the pipeline or already completed, with national capacity expected to reach 33.5 GWh by 2026. That trajectory could position the Kingdom as the third-largest storage market worldwide, behind only China and the United States.
The announcement follows other landmark deals, including SEC’s 12.5 GWh grid-side agreement with BYD and Sungrow’s 7.8 GWh award with AlGihaz, further underscoring Saudi Arabia’s ambition to become a global leader in renewable integration and energy storage.
