Saudi Energy Company has signed three Storage Services Agreements with the Saudi Power Procurement Company (SPPC) for the development of battery energy storage projects with a combined capacity of 1,500 MW/6,000 MWh across Saudi Arabia.

The three projects, located in Makkah and Hail provinces, have a combined contract value of about SAR3.25 billion ($867 million). Saudi Energy holds an effective 35.1 per cent stake in each project.

The agreements, all signed on August 20, cover the development, financing, construction, ownership and operation of the battery energy storage systems, as well as their connection to the electricity grid. Each agreement has a 15-year term from the respective plant’s commercial operation date.

The projects comprise battery energy storage systems at Al-Muwaih and Haden in Makkah province, and Kahafah in Hail province. Each site has a capacity of 500 MW/2,000 MWh, with contract values of SAR1.06 billion, SAR1.08 billion, and SAR1.11 billion respectively.

The Haden project will also include the development, financing and construction of an extension to a 380 kV electrical substation and its connection to the grid.