ACWA Power Signs Saudi BESS Deals
ACWA Power signed three agreements for 1.5 GW/6 GWh of battery storage projects in Saudi Arabia at Haden, Muwayh and AlKahfah.
ACWA Power has signed three Storage Services Agreements with the Saudi Power Procurement Company for major battery energy storage system (BESS) projects. The deals cover the Haden, Muwayh and AlKahfah sites, representing a combined 1.5 GW/6 GWh of storage capacity. Each project will provide 500 MW/2,000 MWh, equivalent to four hours of storage at full output, under 15-year agreements.
These systems are designed to store electricity during periods of high renewable generation and discharge it when demand rises. This supports grid reliability and allows for greater integration of solar and wind power. The agreements mark a significant expansion of Saudi Arabia's utility-scale battery storage infrastructure.
Major BESS Projects Across the Region
The activity in Saudi Arabia is part of a broader acceleration of energy storage deployment across the Middle East. Larsen & Toubro (L&T) has secured a major order to develop 6 GWh of BESS projects in the region. In the United Kingdom, Masdar has started commercial operations at its 35 MW/70 MWh Rochdale battery storage facility.
| Project Developer | Location | Capacity | Details |
|---|---|---|---|
| ACWA Power | Saudi Arabia (Haden, Muwayh, AlKahfah) | 1.5 GW / 6 GWh | Three projects, each 500 MW/2,000 MWh for 15 years. |
| Larsen & Toubro (L&T) | Middle East | 6 GWh | Major order for BESS projects across the region. |
| Masdar | Rochdale, UK | 35 MW / 70 MWh | Second operational UK BESS for Masdar, now online. |
Saudi Arabia has also signed four additional major battery storage agreements worth approximately SAR 4.35 billion. These cover a combined 2,000 MW of storage capacity. This reinforces the Kingdom's rapid push to build utility-scale battery infrastructure alongside its expanding renewable portfolio.
Partnerships for Renewable Development
Beyond storage, new partnerships are forming to develop renewable generation. Saudi-listed ACWA Power and Korea Western Power (KOWEPO) have signed a memorandum of understanding (MoU) to explore renewable energy opportunities in Uzbekistan. The agreement establishes a framework for cooperation across renewable energy, energy storage and related infrastructure.
In a separate move within Saudi Arabia, the National Housing Company (NHC) and EDF Power Solutions have signed an MoU to explore sustainable energy opportunities. This collaboration aims to integrate clean energy considerations into the Kingdom's expanding urban and housing infrastructure.
Project Financing and Feasibility
Project financing and planning continue to advance. The Kuwait Fund for Arab Economic Development has signed a USD 9.6 million loan agreement with El Salvador to finance the approximately 11 MWp San Matías Solar PV Plant. The total project cost is estimated at USD 13.95 million, with the loan covering about 69% of costs. The facility is targeted for completion in the first half of 2028.
Meanwhile, Oman’s Nama Power and Water Procurement Company (PWP) has issued a request for proposals for a techno-economic feasibility study. The study will assess renewable energy opportunities, including solar PV, wind, hybrid systems and BESS, in the Musandam Governorate. Proposals are due by September 24, 2026.
