Middle East Power Storage Batteries Await $19 Billion in Investments

The battery energy storage sector in the Middle East and North Africa requires diverse funding sources to cover substantial investments, amid tightening insurance requirements and battery risk management.

A recent report, reviewed by the Washington-based Energy Research Unit, showed that the portfolio of projects planned by 2030 has reached 128.6 gigawatt-hours.

Consequently, battery energy storage projects in the Middle East and North Africa require capital expenditures estimated at $15 billion to $19 billion before 2030, based on current installation costs.

As of August 2026, the number of battery storage projects in the region reached 33, with a total capacity of 20.8 gigawatt-hours, according to a report issued by D Desert Energy.

Battery energy storage in the Middle East and North Africa

The planned battery energy storage projects in the Middle East and North Africa by 2030 include approximately 84 projects, with a total capacity of 128.57 gigawatt-hours.

The capacity of projects currently in the development phase stands at 77.05 gigawatt-hours, with Saudi Arabia, Egypt, Oman, Turkey, and Kuwait leading the markets in terms of growth potential.

In contrast, the UAE remains a major player in the storage market, despite its new projects being relatively smaller in scale.

Power battery storage requirements in the Middle East

The current cost of electricity storage batteries in the Middle East and North Africa ranges between $120 and $150 per kilowatt-hour.

Accordingly, the 128.6 gigawatt-hour project portfolio will require approximately $15 to $19 billion in capital expenditures before 2030, excluding investments in gigafactories in the region, as noted by the Energy Research Unit.

The financing model for this market has begun to take shape through the 19 gigawatt-hour Masdar project, which reached financial close in July 2026 at $6.1 billion, including $5.1 billion in debt from 13 banks.

The list of lenders includes Gulf, Chinese, Islamic, and international banks, reflecting the diversity of the financing base underpinning storage projects.

On the other end of the financing risk spectrum, Egypt’s first utility-scale battery storage project secured a $72 million loan from the International Finance Corporation (IFC), alongside participation from the Dutch development bank (FMO), blended finance facilities, and the Clean Technology Fund.

Islamic finance instruments offer a structural advantage, as the value of outstanding green, social, and governance (ESG)-linked sukuk is expected to exceed $70 billion by the end of 2026, while Saudi Arabia issued its first $1.3 billion green sukuk in 2020.

Saudi battery storage project debt also includes financing tranches through murabaha and ijara.

Despite this, no dedicated bond has yet been issued for a battery energy storage project, and the region has the opportunity to launch the first such dedicated bond for this type of project.

Insurance faces risks from battery energy storage

A report by D. Desert Energy indicated that the Moss Landing incident in January 2025 led to a tightening of global scrutiny on battery energy storage system risks.

Meanwhile, specialized insurance companies are pricing technology risk rates at approximately 30 to 40 cents per $100 of insured value, with increased scrutiny on battery container design and a clear reluctance to insure battery energy storage projects located inside buildings.

Gigawatt-scale storage projects in the Middle East and North Africa region, which are deployed at outdoor sites using containerized systems and certified under Large-Scale Fire Testing (LSFT), hold a distinct advantage. However, the concentration of asset value at each site remains a risk factor.

Insurance costs are linked to the data provided by the project and its ability to demonstrate operational discipline.

Predictive monitoring programs can help reduce insurance costs for large-scale storage sites in the region.