Saudi Electricity Company Receives Bids for 1,000 MW Battery Energy Storage Projects in Tabuk and Hail

Key Highlights

• Saudi Electricity Company (SEC) is moving forward with a significant Battery Energy Storage Systems (BESS) initiative totaling 1,000 MW capacity.

• Project Locations: Targeted for development in Tabuk (Western Region) and Hail (Central Region) of Saudi Arabia.

• Major Bidders & Proposals:

  • Xiamen Hithium Energy Storage submitted a SAR 686.35 million proposal for BESS supply at Hail 2 BSP.

  • Alfanar Projects proposed:

    • SAR 436.46 million for construction at Tabuk-1 BSP.

    • SAR 441.01 million for construction at Hail 2 BSP.

  • Xiamen Hithium Energy Storage also submitted a SAR 6.1 million bid for maintenance at both Tabuk-1 and Hail 2 BSP.

• Project Scope: The BESS installations are designed to support Load Shifting, with additional capabilities for Black Start, Frequency Regulation, and Voltage Support.

• Final Awards: Pending outcome of the bid evaluation process by SEC.

The Saudi Electricity Company (SEC) has reached a crucial stage in its renewable infrastructure expansion, having officially received multiple competitive proposals for its Battery Energy Storage System (BESS) projects, which collectively offer a 1,000 MW storage capacity. These strategic energy facilities are planned for Tabuk in the western part of the Kingdom and Hail in the central region.

Project Locations and Objectives

The BESS projects are part of SEC’s broader efforts to modernize and stabilize the power grid while enhancing the integration of renewable energy. The selected sites, Tabuk-1 Bulk Supply Point (BSP) and Hail 2 BSP, have been identified as key nodes in this transformation.

These systems are designed not just for energy storage but also to deliver load shifting as their primary function. Additionally, a portion of the system’s total capacity can be selectively used for black start support, frequency regulation, and voltage stabilization—all essential components for maintaining a reliable and flexible power network.

Bids Submitted by Major Industry Players

Xiamen Hithium Energy Storage, a leading name in the global battery storage industry, has offered to supply BESS equipment for the Hail 2 BSP project, quoting SAR 686,350,000. The company has also expressed interest in handling the maintenance operations for both Tabuk-1 and Hail 2 BSP locations, submitting a maintenance bid of SAR 6,100,000.

On the construction front, Alfanar Projects, a well-known Saudi engineering and construction company, has proposed:

• SAR 436,464,000 for the construction of the Tabuk-1 BESS facility, and
• SAR 441,013,000 for the construction of the Hail 2 BESS plant.

Awaiting Evaluation Results

All proposals are now under detailed scrutiny by SEC, which will undertake a thorough evaluation process to determine the best-qualified bidders. Final awarding decisions will be made based on a combination of technical competency, financial feasibility, and long-term reliability.

A Step Toward Grid Modernization

This large-scale BESS deployment signifies a bold move toward energy resilience and sustainability in Saudi Arabia. With increasing reliance on renewable sources like solar and wind, battery storage systems like these are crucial for smoothing out supply fluctuations and ensuring consistent energy availability across the Kingdom.

As the bidding process moves into its final stages, the successful contractors will soon begin work on one of the most advanced storage infrastructure projects in the region—contributing to Saudi Arabia’s Vision 2030 goals and global climate commitments.