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Saudi Inks Deals for 2-GW Battery Energy Storage Projects

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State-owned Saudi Power Procurement signed service agreements for four battery energy storage system projects, with combined capacity of 2 gigawatts and investment of 4.35 billion Saudi riyal ($1.16 billion), the Ministry of Energy said Friday on social media.

These form the first group of BESS projects under the build-own-operate model, according to the statement. Each system will have a capacity of 500 megawatts and a four-hour storage duration.

A consortium comprising Saudi Energy, ACWA, and Al Sharif Contracting received the award for the first three projects, namely Al Muwyah BESS and Haden BESS in Makkah Region, and Al Kahafa BESS in Hail Region.

Meanwhile, Engie and Haji Abdullah Alireza won the fourth project, Al Khushaybi BESS in Qassim Region.

"The projects aim to support the integration of renewable energy and energy storage into the Kingdom's electricity system and contribute to achieving an optimal electricity generation mix of approximately 50% renewable energy by 2030, in line with growing electricity demand," the ministry said in a LinkedIn post.

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