ACWA Power’s SPPC Battery Storage Deal: Inside Haden, Muwayh, and AlKahfah

Each of the three projects is described as a 500 MW battery energy storage system with 2,000 MWh of storage capacity. That configuration implies a 4-hour duration, and the projects are explicitly described as capable of delivering electricity for up to four hours at full output. Together, the three sites account for 1,500 MW of power capacity and 6,000 MWh of storage. The service term is also consistent across the portfolio: each facility will operate under a 15-year agreement with SPPC. Sources describe the procurement as one of the largest battery energy storage procurements globally, highlighting the scale and the uniform, repeatable structure used for all three locations.

Where the Batteries Sit, and What They Do for the Grid

Project geography is split across Saudi Arabia’s west and north. Haden and Muwayh are in the western region, and Energy-Storage.News further places them in Makkah province. AlKahfah is located in the northern part of the Kingdom, with reporting specifying Hail province. The role of the assets is framed around daily system balancing: the batteries are expected to store electricity generated during periods of lower demand and release it when electricity consumption reaches peak levels. Omar Al Hassan, CEO – Saudi Arabia at ACWA Power, said energy storage has become an essential part of how the Kingdom is developing its power system, including storing energy produced during the day and supplying it during peak demand.

The tenders were conducted by SPPC, which operates under the supervision of the Ministry of Energy and acts as the Kingdom’s principal buyer of electricity. Energy-Storage.News describes the qualification phase: it launched in November 2024, and qualified bidders were announced in January 2025, with 33 bidders applying. The criteria included experience in renewable energy and/or battery storage, plus tangible net worth requirements of US$100 million or more for managing entities and US$50 million or more for technical partners. Context from Terrawatt.News describes the round as a Saudi government tender for four projects, structured as build-own-operate and backed by 15-year Storage Services Agreements, with awards described as worth more than SAR 4.35 billion (about US$1.16 billion).

Several sources add detail on who is involved and how supply chains connect. Energy-Storage.News reports that three of the four 500 MW/2,000 MWh agreements went to a consortium comprising Saudi Energy, ACWA Power, and Al Sharif Contracting and Commercial Development Company, while another project went to a different consortium. A separate Energy-Storage.News report confirms Chinese manufacturer Gotion High-Tech as the BESS technology supplier for the three ACWA Power-led projects totaling 6 GWh, and says those three sites represent roughly 75% of the tender’s total 2 GW/8 GWh capacity; Gotion values that overall tender capacity at approximately US$1.16 billion. For additional comparison of ACWA’s storage footprint outside this deal, SolarQuarter notes ACWA’s Tashkent Riverside project in Uzbekistan combines 770 MWh of battery storage with 200 MW of solar capacity, while the Red Sea Project in Saudi Arabia uses 1,227 MWh of battery storage to supply electricity without relying on the national grid. In this context, the ACWA Power battery storage SPPC agreements mark another major step in scaling storage as a contracted grid service.