Saudi Arabia has emerged as one of the world's top 10 markets for battery energy storage, coinciding with the launch of the 2,000-megawatt-hour Bisha project, one of the largest energy storage initiatives in the Middle East and Africa..
The Kingdom, through its National Renewable Energy Program led by the Ministry of Energy, aims to achieve a total storage capacity of 48 gigawatt-hours by 2030. To date, storage projects with a combined capacity of 26 gigawatt-hours have been tendered and are progressing through various stages of development. These projects are central to Saudi Arabia's strategy to expand its renewable energy sector, with a target for renewables to contribute 50% of the country's total electricity generation by 2030.
According to energy consultancy Wood Mackenzie, Saudi Arabia is at the forefront of emerging markets driving rapid growth in energy storage. The addition of new storage capacity over the next decade is expected to solidify its position among the world's leading markets. This rapid expansion aligns with Saudi Vision 2030, identifying energy storage as a key enabler for increasing power generation from solar and wind sources.
Saudi Arabia aims to bring 8 gigawatt-hours of energy storage projects online by 2025 and 22 gigawatt-hours by 2026. These targets would position the Kingdom as the world's third-largest energy storage market, behind China and the United States.
The recently operational Bisha Battery Energy Storage Project features 488 advanced battery containers with a total storage capacity of 500 megawatts for four hours. The facility allows energy to be stored during periods of low demand and discharged during peak consumption, ensuring backup power availability while enhancing grid resilience and stability. The project is expected to support the integration of smart energy solutions, contributing to a more sustainable energy future.
Saudi Arabia's energy sector is undergoing a significant transformation as the Kingdom reinforces its position as a global leader in energy production and exports. By the end of 2024, total renewable energy capacity across all stages of development had reached 44.1 gigawatts. Energy storage is increasingly recognized as a critical component in enhancing grid reliability, managing fluctuations, and advancing the Kingdom's long-term energy strategy.
