Saudi Arabia has one of the world’s lowest battery storage costs, with the Saudi Electricity Company (SEC) awarding contracts for two large-scale battery energy storage systems totalling 4.9 GWh. The projects, which cost between USD 73 and USD 75 per kilowatt-hour (kWh), represent a significant shift in global energy storage economics, particularly outside China.
The contracts were granted to the Chinese manufacturer HiTHIUM and the Saudi EPC contractor Alfanar Projects. The northern provinces of Tabuk and Hail hold each project, which has a 500 MW capacity and four hours of storage. Together, they account for 4.9 GWh of installed capacity, with a five-year degradation overbuild to ensure consistent performance.
The Tabuk site’s equipment supply is expected to be worth roughly USD 179 million, with EPC costs of USD 116 million, while the Hail site is anticipated to be worth USD 183 million for supply and USD 118 million for EPC. Both projects will use HiTHIUM’s 1175Ah lithium iron phosphate cells inside Desert Eagle containerised systems designed to endure extreme conditions. Commissioning is scheduled in 2026.
The record pricing highlights declining global battery costs, which are being driven by oversupply and low material costs.
