2GW/8GWh! Saudi Arabia launches prequalification for battery energy storage system tender
According to foreign media reports, the Saudi Power Procurement Company (SPPC), which is managed by the Saudi Ministry of Energy and is responsible for purchasing power generation projects, has recently launched a pre-qualification process for the bidding of a 2GW/8GWh battery energy storage system.
AMAALA is a luxury tourism project on Saudi Arabia's northwest coast that will deploy a 160MW/760MWh battery energy storage system and a 165MW solar farm.
Saudi Power Procurement Company (SPPC), the sole purchaser of electricity energy and capacity, announced the news on November 4.
The company is inviting bids for four battery energy storage projects, each with an installed capacity of 500MW and a storage capacity of 2GWh.
The Saudi Power Procurement Company (SPPC) will award a 15-year energy storage service contract to the successful bidder in a build, own and operate (BOO) model. The bidder must hold 100% of the shares of the company (SPV) established to develop and operate the project.
The Saudi Power Procurement Company (SPPC) conducts tenders in conjunction with the Saudi government's National Renewable Energy Program (NREP). The company is currently conducting the fifth round of NREP auctions and has recently shortlisted four solar power projects with a total installed capacity of 3.6GW.
According to Saudi Arabia's Vision 2030 policy roadmap, the oil-rich country has set a goal of increasing the share of renewable energy in its electricity structure to 50% by 2030.
Saudi Energy Minister Prince Abdulaziz bin Abdullah Al Sau said in 2021 that about $293 billion will be invested in power and energy projects in the coming years. The largest share will be used for transmission upgrades and renewable energy, while investment in distribution networks will be smaller.
The Saudi Power Procurement Company (SPPC) said the current tender is the first in a battery storage procurement programme that will enable the kingdom to reach its 50% renewable energy target.
Bidders must have experience in operating independent power plants (IPPs) or battery energy storage projects
The Saudi Power Procurement Company (SPPC) has identified four battery energy storage systems, referred to as Independent Storage Projects (ISPs), for their locations. Two will be located in Makkah province, one in Qassim province and another in Hail province.
Eligible bidders must respond to the Request for Information (RFI) and Request for Prequalification (RFQ) by noon on November 25, 2024. Bidders must include both management and technical members, which can be the same entity if eligible.
Management members need to have experience in project development, including financing, or be significant shareholders in operating independent power producers (IPPs) or battery energy storage projects.
In the past 15 years, management members need to have participated in the development and operation of more than 500MW of traditional energy or renewable energy independent power plants (IPPs) or battery energy storage projects as developers or major shareholders.
Technical members need to have a track record of delivering projects as specified in the tender documents, including the design, procurement, construction and operation of conventional energy projects or independent power producer (IPP) projects for renewable energy or battery energy storage systems.
Managing members must have a net worth of at least $100 million, while technical members must have a net worth of $50 million or more.
One of the major battery storage projects announced so far in Saudi Arabia includes what is claimed to be the world's largest off-grid battery storage system, which will be built at a luxury resort on the Red Sea coast and will include a 536MW/600MWh battery system, as well as another solar-plus-storage project under development.
Recently, Chinese battery energy storage system manufacturer Haichen Energy Storage announced plans to build a battery factory with an annual production capacity of 5GWh in Saudi Arabia in a joint venture with engineering company MANAT.
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