Saudi Arabia Advances Battery Energy Storage with Over $1.16 Billion in Project Awards

Major BESS Projects Awarded in Saudi Arabia

The Saudi Power Procurement Company (SPPC), the primary electricity buyer for Saudi Arabia, has executed four storage service agreements for the initial phase of battery energy storage systems (BESS) projects. These agreements signify a combined investment exceeding USD1.16 billion.

The four awarded projects are designed to collectively provide 2,000 MW/8,000 MWh of storage capacity. Each facility will be capable of storing electricity for a duration of four hours.

Consortia Secure Key Contracts

Three of the four projects, each with a capacity of 500 MW/2,000 MWh, have been awarded to a consortium. This consortium includes Saudi Energy, ACWA Power, and Al Sharif Contracting and Commercial Development Company. These projects are the Al Muwyah BESS independent storage provider (ISP) and Haden BESS ISP projects, both located in the Makkah Region, and the Al Kahafa BESS ISP project in the Hail Region.

The fourth project, the 500 MW/2,000 MWh Al Khushaybi BESS ISP project in the Qassim Region, has been awarded to a separate consortium. This group comprises ENGIE and Haji Abdullah Alireza & Company Limited.

Uttarakhand Approves 1,320 MW Power Procurement from Adani Power

The Uttarakhand Cabinet has given its approval for Uttarakhand Power Corporation Limited (UPCL) to procure 1,320 MW of coal-based power from Adani Power Limited. The agreement is set for a 25-year period at a tariff of Rs 5.746 per unit. Adani Power Limited was selected as the lowest bidder in the procurement process.

This procurement is intended to bolster energy security and provide a consistent base-load power supply within the state. The Cabinet has authorized UPCL to proceed with signing the power supply agreement and other necessary documentation with Adani Power Limited. Additionally, UPCL is tasked with fulfilling all contractual conditions and securing the required statutory approvals from the Uttarakhand Electricity Regulatory Commission.

India Faces Transmission Infrastructure Shortfall Amidst Renewable Energy Growth

Despite adding a record 38 GW of solar capacity in 2025, pushing non-fossil sources past 50% of installed generation, India is curtailing a growing share of its solar power. Between April and June 2026, 8,133 GWh of solar power was curtailed, highlighting that transmission, not generation, is the primary constraint on India's energy transition. The country built only 8,830 circuit kilometers of new lines in FY25, falling 42% short of its 15,253 km target.

The Central Electricity Authority estimates that India requires ₹9.15 lakh crore in transmission investment and 191,000 circuit kilometers of new lines by 2032. Current 25-year fixed-price Power Purchase Agreements (PPAs) are deemed unsuitable for the dynamic nature of renewable energy, leading to grid inflexibility. Reforms are proposed, including establishing a unified authority for transmission projects, evolving PPA structures towards shorter-tenure and flexible contracts, mandating co-located battery storage, implementing interconnection reforms, and incentivizing large consumers to locate near renewable hubs.