(Yicai) July 16 -- Shares in Sungrow Power Supply surged by the exchange-imposed limit today after the Chinese photovoltaic giant said that it has been commissioned by Saudi Arabian investment firm Algihaz Holding to construct the world’s biggest off-grid energy storage project in the Middle Eastern Kingdom.

Sungrow’s share price [SHE:300274] closed up 10 percent at CNY70.31 (USD9.70).

Sungrow will build a 7.8 gigawatt-hour energy storage project that will improve the stability and reliability of Saudi Arabia's electricity grid, the Hefei-based firm said today, citing the deal inked by the two parties. The value of the contract was not mentioned.

The project, which will comprise nearly 7.8 million battery cells, will be spread across three sites, namely Najran, Madaya and Khamis Mushait, Sungrow said.

The assignment involves a huge volume, a tight schedule and complex scheduling, it added. Delivery of the units should start this year and it will be connected to the grid at full capacity next year. The project should have a long life cycle of more than 15 years.

The world’s largest crude oil exporter has repeatedly said that it will actively develop its renewable energy sector. Green energy, including solar and wind, is meant to account for half of the country’s energy mix by 2030 at 58.7 GWh, according to the Vision 2030 plan put forward by Saudi Crown Prince Muhammad bin Salman bin Abdel Aziz Al Saud in 2016.

Sungrow’s revenue from power conversion equipment, energy storage systems, and power station system integration accounted for 97.1 percent of its total in 2023, according to its latest financial report.

Chinese tech giant Huawei is currently building the world's second-largest off-grid battery energy storage project, which is also in Saudi Arabia, and which has now reached 1.3 GWh of energy storage capacity.

Editor: Kim Taylor