Riyadh — Mubasher: Saudi Energy Company has penned a power storage services agreement with the Saudi Power Procurement Company, the principal buyer, for the Kahafah Battery Energy Storage System Independent Storage Project (IPS).
The contract is valued at SAR 1.11 billion and was signed on 20 August 2026, following the project award on the same date, according to a bourse filing.
Saudi Energy holds a 35.10% equity stake in the project, while the listed ACWA Power Company (Acwa) is identified as a related party in the transaction, Similar to the other announcement of the Haden Battery Energy Storage System ISP award.
The Kahafah project is located in the Hail region, while the facility will have a storage capacity of 500 MW/2000 MWh.
Under the terms of the agreement, Saudi Energy is responsible for the development, financing, construction, ownership, and operation of the battery storage system, including its connection to the grid substation.
The contract duration is 15 years starting from the commercial operation date.
Saudi Energy stated that the financial impact of the agreement will be clarified upon the completion of the financial close for the project.
