Saudi Electricity Company awards 12.5 GWh battery storage contracts to China’s BYD

The Saudi Electricity Company (SEC) has awarded a series of battery energy storage system (BESS) contracts to China’s BYD totalling 2.5 GW/12.5 GWh, multiple Chinese media reported on January 11.
The contracts include five separate 500 MW/2,500 MWh storage systems which will be deployed across Saudi Arabia, with sites in Riyadh, Qaisumah, Dawadmi, Al Jouf, and Rabigh. This marks a significant step in SEC’s efforts to strengthen the country’s grid stability and integrate more renewable energy sources.
As the winning bidder in the procurement exercise announced in August 2024, BYD is reported to provide end-to-end solutions, covering battery supply, system design, on-site installation supervision, equipment testing, and long-term operation and maintenance. The BESS projects are expected to help SEC manage dynamic load shifting and enhance the grid’s response to fluctuations in electricity demand.
SEC has outlined stringent performance requirements for the storage systems, including black start capability to restore power during outages, frequency regulation to manage grid stability, and voltage support to optimize grid output. The company expects BYD’s systems to reduce reliance on partial-load operations at existing power plants, improving energy efficiency and facilitating the integration of renewable energy.
This latest contract represents the third phase of SEC’s ongoing energy storage procurement. BYD previously secured a 2 GWh order in the first phase, while China’s Sungrow won a 7.8 GWh contract in the second phase in July 2024. With this latest award, BYD reclaims its position as the leading energy storage supplier in the Middle East, surpassing Sungrow.
At the time of writing, BYD has not issued an official statement regarding the SEC’s contracts, nor has it responded to inquiries from ESS News. Sources familiar with the matter suggest that ongoing negotiations over project details may be delaying official announcements.