20 October 2026Established 2026 · English edition
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Sepco awarded 500MW/2,000MWh Al Khushaybi BESS EPC contract

Project developed by Engie and Haji Abdullah Alireza consortium with Saudi Power Procurement Company as offtaker.

Battery storage cells in geometric arrangement with grid infrastructurePhotograph by Kindel Media on Pexels

Shandong Electric Power Construction Corporation secured the engineering, procurement and construction contract for the 500MW/2,000MWh Al Khushaybi battery energy storage system in Saudi Arabia's Qassim region. The project is developed by a consortium comprising Engie and Haji Abdullah Alireza & Co, with Saudi Power Procurement Company as offtaker. The facility forms part of the Kingdom's first wave of large-scale battery energy storage projects.

Al Khushaybi BESS capacity and offtake structure#

The battery energy storage system carries a planned capacity of 500 megawatts with 2,000 megawatt-hours of storage duration. Saudi Power Procurement Company holds the offtake agreement for the project. The facility will store energy during periods of lower demand and discharge when demand increases. The project sits within Saudi Arabia's Group 1-KSB Independent Battery Energy Storage System programme.

Grid integration and renewable energy support#

The facility is designed to balance electricity supply and demand across the national grid. The system will support integration of solar and wind power into Saudi Arabia's power network. The battery storage infrastructure complements the Kingdom's expanding renewable energy capacity. The facility will provide grid balancing services to Saudi Power Procurement Company.

Developer consortium and EPC contractor#

Engie and Haji Abdullah Alireza & Co form the development consortium for the Al Khushaybi project. Shandong Electric Power Construction Corporation holds the EPC contract for the facility. The project represents deployment of large-scale battery storage infrastructure in the Qassim region. No completion date or contract value was disclosed in available sources.

Saudi battery storage programme context#

The Al Khushaybi facility forms part of Saudi Arabia's first wave of large-scale battery energy storage projects under the Group 1-KSB programme. The project supports development of energy storage infrastructure to complement renewable energy capacity additions. The battery system will provide grid balancing services to Saudi Power Procurement Company. The facility represents commercial deployment of utility-scale battery storage technology in the Kingdom's power sector.

Sources2 sources across 2 domains

  1. utilities-me.comUtilities Middle EastSepco secured 500MW/2,000MWh Al Khushaybi BESS contract, project developed by Engie and Alireza
  2. meconstructionnews.comME Construction NewsProject capacity, developer consortium, SPPC as offtaker, Group 1-KSB programme designation, grid balancing function

Each source above carries the claim it supports. Links open the publisher's own page; their text is not reproduced here beyond what the claim requires, and their rights remain theirs.

Filed underbattery storagesepcoengieqassimsaudi power procurement companybess

Arabia Tomorrow is published by Arabian Media Network. Pieces are produced by the Infrastructure Capital Desk with AI-assisted synthesis of the cited sources and automated verification against the network's editorial policy. Every piece carries a desk rather than a reporter. Corrections are recorded on the piece and on the corrections page.

The dataset behind this storyThe Energisation Ledger

Every announced MENA data centre and IPP: announced capacity, financing status, EPC awarded, chip licence status, stated energisation quarter, slip to date in quarters.

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