Saudi Arabia Grid Energy Storage Market Overview

Market Size in 2024: USD 117.90 Million

Market Size in 2033: USD 1,142.75 Million

Market Growth Rate 2025-2033: 25.50%

According to IMARC Group's latest research publication, "Saudi Arabia Grid Energy Storage Market Size, Share, Trends and Forecast by Battery Chemistry, Ownership, Application, and Region, 2025-2033", The Saudi Arabia grid energy storage market size reached USD 117.90 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,142.75 Million by 2033, exhibiting a growth rate (CAGR) of 25.50% during 2025-2033. 

Growth Factors in the Saudi Arabia Grid Energy Storage Market

• Vision 2030’s Renewable Energy Push

Saudi Arabia’s Vision 2030 is steering the grid energy storage industry toward rapid growth by prioritizing renewable energy integration. The National Renewable Energy Program (NREP) targets 50% renewable electricity, with 4,500 MW of renewable capacity already added to the grid. Energy storage is critical to manage solar and wind power’s variability. The Saudi Power Procurement Company (SPPC) recently launched a tender for four 500 MW battery energy storage systems (BESS), totaling 2 GW/8 GWh, one of the world’s largest. These projects stabilize the grid, ensuring reliable power. Government incentives, like subsidies for storage projects and public-private partnerships, attract companies like ACWA Power, boosting investment and creating jobs in this fast-growing sector.

• Rising Electricity Demand

Saudi Arabia’s booming population and industrial growth are spiking electricity needs, driving demand for grid energy storage. With 373.5 billion kWh of electricity generated annually, the grid faces pressure to maintain stability. Storage systems, like the 2.5 GWh Bisha facility, help balance peak loads and prevent brownouts. Urbanization and projects like NEOM and Riyadh Metro require reliable power, making storage essential. The government’s push for smart grids, with 32% of distribution networks automated and over 10 million smart meters installed, enhances storage integration. Companies like Saudi Electricity Company are investing heavily in storage to support grid reliability, ensuring energy supply keeps pace with the Kingdom’s economic ambitions and growing urban centers.

• Private Sector and Foreign Investment

The grid energy storage market is thriving thanks to robust private sector involvement and foreign investment. Companies like SCHMID and Nusaned Investment are collaborating on flow battery manufacturing, with plans for a GW-scale facility. The Public Investment Fund (PIF) partners with global firms like BYD and Samsung SDI, driving innovation and local production. Saudi Arabia’s favorable policies, including tax breaks and streamlined regulations, make it a magnet for investors. Over 15 major vendors, including Toshiba and Enersys, are active in the market, supporting projects like the 2 GW BESS tenders. This influx of expertise and capital is building a strong supply chain, reducing costs, and accelerating the deployment of advanced storage technologies across the Kingdom.

Key Trends in the Saudi Arabia Grid Energy Storage Market

• Adoption of Advanced Battery Technologies

Saudi Arabia is embracing cutting-edge battery technologies, like lithium-ion and flow batteries, to enhance grid storage. The 2.5 GWh Bisha storage facility, one of the world’s largest, showcases lithium-ion’s scalability.

The Kingdom is also exploring sodium-ion batteries, which could lower costs compared to lithium-ion. Projects like NEOM’s 4 GW green hydrogen facility rely on advanced storage to manage renewable energy fluctuations. Companies like Samsung SDI and NGK Insulators are investing in R&D to improve battery efficiency. This trend, supported by the NREP, ensures grid stability and supports Saudi Arabia’s goal of reducing fossil fuel reliance, making storage a cornerstone of its clean energy transition.

• Integration with Smart Grid Technologies

Smart grid advancements are transforming Saudi Arabia’s energy storage market by improving efficiency and reliability. With 32% of the grid automated and plans for nine advanced control centers, the Kingdom is leveraging AI and digital tools to manage power fluctuations. The Saudi Electricity Company’s USD 2.5 billion project to install 10 million smart meters supports two-way energy flow, integrating storage seamlessly. This enables real-time monitoring and demand response, critical for handling renewable energy’s variability. For example, ACWA Power’s photovoltaic forecasting system uses big data to optimize storage use. This trend aligns with Vision 2030, fostering a resilient grid that supports growing renewable capacity and urban energy demands.

• Growth in Green Hydrogen Storage Solutions

Green hydrogen is emerging as a key storage solution in Saudi Arabia, driven by wind and solar integration. The NEOM Green Hydrogen Company’s 4 GW facility, powered by 250 wind turbines, uses excess renewable energy to produce hydrogen, stored for later use. This approach supports grid stability and creates a new energy export market. The government’s target of 2.9 million tons of hydrogen production annually relies on storage innovations. Companies like Envision are exploring hydrogen storage alongside traditional batteries, with posts on X highlighting industry excitement. This trend diversifies storage options, reduces emissions, and positions Saudi Arabia as a global leader in clean energy, aligning with its sustainability goals.

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Saudi Arabia Grid Energy Storage Industry Segmentation:

The report has segmented the market into the following categories:

Battery Chemistry Insights:

• Lead-Acid
• Sodium-Based
• Redox Flow
• Lithium-ion
• Others

Ownership Insights:

• Third-party Owned
• Utility Owned

Application Insights:

• Renewables
• Peak Shifting
• Ancillary Services
• Backup Power
• Others

Regional Analysis:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Future Outlook

Saudi Arabia’s grid energy storage market is set for a bright future, fueled by Vision 2030’s ambitious renewable energy goals. With 4,500 MW of renewable capacity already integrated and plans for 15,000 MW more, storage systems like the 2 GW/8 GWh BESS projects will be critical for grid stability. The focus on advanced technologies, like lithium-ion and green hydrogen, alongside smart grid upgrades with 10 million smart meters, ensures efficient energy management. Private investments from firms like BYD and ACWA Power, backed by the PIF, are driving innovation and local manufacturing. As urbanization and projects like NEOM demand reliable power, grid storage will grow, supporting Saudi Arabia’s shift to a sustainable, diversified energy landscape and global clean energy leadership.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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