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 1,500MW/6,000MWh 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% 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 are:

* Al-Muwaih Battery Energy Storage System, in Makkah province, with a capacity of 500MW/2,000MWh and a contract value of SAR1.06 billion.

* Kahafah Battery Energy Storage System, in Hail province, with a capacity of 500MW/2,000MWh and a contract value of SAR1.11 billion.

* Haden Battery Energy Storage System, in Makkah province, with a capacity of 500MW/2,000MWh and a contract value of SAR1.08 billion.

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

Saudi Energy said the financial impact of the projects will be announced once financial close is achieved. ACWA Power is listed as a related party for all three agreements. Acwa’s effective shareholding in each project company will be 34.9%.

The agreements add to Saudi Arabia’s rapidly expanding battery energy storage programme, as the kingdom builds large-scale storage capacity to support the integration of renewable power and improve the flexibility and reliability of its electricity network.