Saudi Arabia Strengthens Its Position in the Global Battery Energy Storage Market
Saudi Arabia has solidified its status as one of the world’s top ten battery energy storage markets with the launch of the 500 MW/2,000 MWh Bisha Battery Energy Storage System (BESS) in the southwestern province of ‘Asir. This project, among the largest of its kind in the Middle East and Africa, marks a significant advancement in the nation’s energy storage capabilities.
Owned by the Saudi Electric Company (SEC), the Bisha BESS comprises 122 prefabricated storage units designed and supplied by BYD, a Chinese company. Each unit features a 6 MW power conversion system and includes four lithium iron phosphate (LiFePO4) battery modules with a total capacity of 5.365 MWh. This modular design optimizes space and enhances system integration.
In a strategic move to expand its energy storage initiatives, SEC has partnered with BYD Energy Storage for additional projects totaling 12.5 GWh. This collaboration, along with the ongoing 2.6 GWh project, will result in a cumulative storage capacity of 15.1 GWh.
Projections indicate that Saudi Arabia aims to operate 8 GWh of energy storage projects by 2025 and increase this to 22 GWh by 2026, positioning the kingdom as the third-largest global market for energy storage, trailing only China and the United States. This rapid growth aligns with the objectives of the National Renewable Energy Program, which aims to diversify energy sources and reduce reliance on fossil fuels.
Market analysis reveals that the energy storage sector in Saudi Arabia generated $197.6 million in revenue in 2023, with expectations to soar to $1.693 billion by 2030. This represents a compound annual growth rate (CAGR) of 35.9% from 2024 to 2030.
In addition to its energy storage advancements, Saudi Arabia is strategically investing in the lithium supply chain essential for battery production. In collaboration with the state-owned mining company Ma’aden, Saudi Aramco plans to commence commercial lithium production by 2027. This initiative is expected to fulfill the kingdom’s growing demand, projected to increase 20-fold from 2024 to 2030, driven by the anticipated production of 500,000 electric vehicle batteries and the establishment of 110 gigawatts of renewable energy sources.
These investments in energy storage and lithium production further reinforce Saudi Arabia’s position as a key player in the global energy transition.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/saudi-arabia-emerges-as-a-key-player-in-the-global-battery-energy-storage-market/
