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Principal buyer Saudi Power Procurement Company (SPPC) has prequalified firms that can participate in the tender for the first phase of its independent battery energy storage system (bess) projects in Saudi Arabia.

Interested companies, including international and local developers, submitted their statements of qualifications for the tender on 25 November. 

The group one bess – also called independent storage provider (ISP) – projects will be developed using a build, own and operate (BOO) model.

They comprise the following schemes with a total combined capacity of 2,000MW, which equates to about four hours or 8,000 megawatt-hours (MWh) of storage:

• Al-Muwyah bess ISP: 500MW (Mecca)
• Haden bess ISP: 500MW (Mecca) 
• Al-Khushaybi bess ISP: 500MW (Qassim)
• Al-Kahafa bess ISP: 500MW (Hail)

The following 21 companies may bid for the contracts as managing or technical partners:

• Abu Dhabi Future Energy Company (Masdar, UAE)
• Abu Dhabi National Energy Company (Taqa, UAE)
• Acwa Power (local)
• Akaysha Energy (Australia)
• China Energy Overseas Investment Company (CEECOIC, China)
• China Power Engineering Consulting Group International Engineering (China)
• China Southern Power Grid International (HK) Company (CSGIHK)
• Cox Energy (Spain)
• EDF (France)
• Envision Energy (China)
• FRV-X Renewable (Spain)
• International Power (Engie, France)
• Jera Nex (Japan) 
• Jinko Power (Hong Kong) 
• Korea Electric Power Corporation (Kepco, South Korea)
• Marubeni Corporation (Japan)
• Pro-Power Investment (China)
• Samsung C&T Corporation (South Korea)
• SPIC Huanghe Hydropower Development Company (China)
• TotalEnergies Renewables (France)
• X-Elio Energy 

The following firms may bid as technical partners:

• Al-Gihaz Holding Company (local)
• Al-Jomaih Energy & Water Company (local)
• Alfanar Company (local)
• FAS Energy (local)
• GCL Intelligent Energy (Suzhou, China)
• Gulf Energy Development Public Company (Thailand)
• Nesma Renewable Energy (local)
• Posco International Corporation (South Korea)
• Power Construction Corporation of China (PowerChina) 
• Saudi Electricity Company (local)
• Shell Overseas Investment (UK)
• Sumitomo Corporation (Japan)

The successful bidders will hold 100% equity in the special purpose vehicle (SPV) set up to develop and operate each ISP.

The SPVs will enter into a 15-year storage services agreement with the principal buyer.

According to SPPC, the energy storage programme will enable the kingdom’s energy mix to contain 50% renewable energy by 2030 while enhancing the reliability and resilience of the electric power system.

MEED reported in May last year that SPPC was several months away from seeking developers’ interest in the contract to develop and operate the 2,000MW first phase of an energy storage system catering to the kingdom’s electricity grid.

It is understood that SPPC plans to procure up to 10,000MW of bess capacity by 2030.

The planned bess facilities are to be built near demand centres. As more renewable energy enters the electricity production mix, they will boost the grid’s spinning reserves.

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 energy storage capacity procurement programme.