EXECUTIVE SUMMARY
Three battery storage projects totaling 1,500 MW/6,000 MWh will be developed by ACWA Power under 15-year Storage Services Agreements with the Saudi Power Procurement Company. Located at Haden, Muwayh and AlKahfah, the four-hour BESS plants will support renewable energy integration and peak-demand management in Saudi Arabia.
Company: ACWA Power
Technology: Battery Energy Storage
Capacity: 1,500 MW/6,000 MWh
Projects: Three BESS Plants
Storage Duration: 4 Hours
Contract: 15 Years
Offtaker: SPPC
Market: Saudi Arabia
Saudi Arabia-based energy and water infrastructure developer ACWA Power has signed three Storage Services Agreements with the Saudi Power Procurement Company (SPPC) for battery energy storage projects totaling 1,500 MW/6,000 MWh in Saudi Arabia. The agreements cover the Haden, Muwayh and AlKahfah BESS plants and were signed at the Ministry of Energy in Riyadh on August 20, 2026.
Each project will have a rated power capacity of 500 MW and an energy storage capacity of 2,000 MWh, providing four hours of battery storage at full output. Haden and Muwayh will be located in the western region of Saudi Arabia, while AlKahfah will be developed in the north. Electricity storage services from each facility will be provided under a 15-year agreement.
The projects are intended to store electricity during periods of available generation and discharge it when power demand increases. This can support greater integration of variable renewable generation while providing additional flexibility to Saudi Arabia's electricity system.
The tender was conducted by SPPC, which is overseen by the Ministry of Energy and acts as the Kingdom's principal electricity buyer. The procurement establishes storage as a contracted service and provides a framework that could be used for subsequent battery storage procurements as Saudi Arabia expands its power infrastructure.
ACWA Power already has experience integrating battery storage with renewable energy projects. Its Tashkent Riverside development in Uzbekistan combines 200 MW of solar generation with 770 MWh of battery storage. In Saudi Arabia, the Red Sea Project uses 1,227 MWh of battery storage to support an off-grid destination-scale development.
The latest agreements add 6,000 MWh to ACWA Power's expanding battery storage portfolio. Across Saudi Arabia, the company holds 41 assets spanning solar, wind, gas, desalination and green hydrogen. ACWA Power has also been mandated by the Public Investment Fund to develop around 70% of the Kingdom's renewable energy pipeline.
The three BESS projects therefore represent a significant expansion of utility-scale battery storage procurement in Saudi Arabia as the country increases renewable generation and develops additional flexibility within its electricity system.