Saudi Power Procurement Company (SPPC) is preparing to begin procurement for the long-awaited 2,000MW first phase of a major battery energy storage system (BESS) project catering to the grid.

The project, first mooted in 2023, is likely to be tendered this quarter, according to an industry source.

SPPC plans to procure up to 10GW, equivalent to 40 gigawatt-hours (GWh), of BESS capacity by 2030. As MEED understands, the BESS project will be developed using an independent power producer (IPP) model.

MEED previously reported that the principal buyer conducted a market-sounding event for the project in December 2023, in line with a plan to launch the procurement process for one-fifth of that capacity the following year.

Since then, SPPC has procured and awarded developer contracts for four solar IPP projects and one wind IPP under round six of the kingdom’s National Renewable Energy Programme (NREP). However, the BESS IPP project has yet to advance to the next stage.

The 2GW first phase of the project involves building multiple battery energy storage systems across multiple locations, with individual capacities ranging from 50MW to 300MW.

Planned BESS facilities are to be built near demand centres. They will boost the electricity grid’s spinning reserves as more renewable energy enters its electricity production mix.

BESS comprises rechargeable batteries that can store and discharge energy from various sources when needed. It is one of the key solutions being considered to address the intermittency of renewable energy sources.

US/India-based Synergy Consulting is advising SPPC on the planned BESS IPP.

Growing renewable capacity

In 2023, Saudi Arabia raised its renewable energy target to 130GW by 2030. To achieve this, the kingdom needs to add approximately 20GW of capacity a year.

Since then, momentum for wind and solar projects has gathered pace as Saudi Arabia advances successive procurement rounds under the NREP.

In October 2025, SPPC awarded contracts to develop and operate five renewable energy projects under round six of the NREP.

These comprise four solar PV IPP projects and one wind IPP project, with a total combined capacity of 4,500MW.

By the end of 2025, total renewable energy capacity tendered by SPPC under the NREP had reached 64GW, with total signed capacity, following the signing of round six contracts, standing at 43.2GW.

The renewable energy programme aims to supply 50% of the kingdom’s electricity from renewable energy by 2030.

Developers are currently preparing bids for the seventh round of the NREP, which was tendered in January and will add 5,300MW of capacity.The round includes four solar projects – Tabarjal 2 (1,400MW), Mawqqaq (600MW), Tathleeth (600MW) and South Al-Ula (500MW) – and two wind schemes: Bilgah (1,300MW) and Shagran (900MW).Bids for the Bilgah and Shagra wind projects are due by 14 May, while submission deadline for the remaining projects is 30 April.