Ouarzazate I Concentrated Solar Power, Morocco

This case study analyzes the financing model and risk allocation of the Ouarzazate I Concentrated Solar Power (CSP) plant in Morocco, a 160MW facility costing USD 1.3 billion. The project utilizes a public-private partnership (PPP) to mobilize capital and mitigate risks in a market where CSP is not yet commercially viable due to high technology costs and fossil-fuel subsidies.

• The Ouarzazate I CSP plant is a 160MW facility with a total cost of USD 1.3 billion, serving as a test case for whether public-private partnerships can gather the resources needed to achieve economies of scale for CSP in the MENA region.
• The project's viability relied on five essential building blocks: strong public support via the Moroccan Agency for Solar Energy (MASEN), approximately USD 1 billion in early concessional financing from International Financial Institutions (IFIs) which reduced levelized costs by 25-30%, strong donor coordination, a specific PPP risk allocation model, and the application of lessons from previous Global Environment Facility-supported CSP projects.
• The PPP model employs a specific risk allocation framework where the private developer is responsible for construction and operational risks, while the Government of Morocco assumes the electricity market (revenue) risk. MASEN performs a dual role as both the equity investor and the power purchaser (off-taker).
• Despite the Ouarzazate I model, CSP is not expected to reach grid parity in Morocco and the MENA region by 2020 solely through economies of scale. Closing the competitiveness gap would require the Government of Morocco to phase out fossil-fuel subsidies and the establishment of renewable power exports to European markets.
• Exporting renewable power to the E.U. requires meeting four preconditions: establishing bilateral or multilateral trade agreements, removing domestic operational subsidies for exported electricity to avoid double subsidization, investing in interconnector capacity, and securing the willingness of E.U. Member States to purchase the power.

APA

Falconer, A., & Frisari, G. (n.d.). Ouarzazate I Concentrated Solar Power, Morocco. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Ouarzazate-I-CSP-Morocco-Case-Study-Summary-Poster1.pdf

Chicago

Falconer, Angela, and Gianleo Frisari. Ouarzazate I Concentrated Solar Power, Morocco. Climate Policy Initiative, n.d. https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Ouarzazate-I-CSP-Morocco-Case-Study-Summary-Poster1.pdf.

Wikipedia

{{cite report |last1=Falconer |first1=Angela |last2=Frisari |first2=Gianleo |title=Ouarzazate I Concentrated Solar Power, Morocco |publisher=Climate Policy Initiative |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Ouarzazate-I-CSP-Morocco-Case-Study-Summary-Poster1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{falconerndouarzazate, author = {Falconer, Angela and Frisari, Gianleo}, title = {{Ouarzazate I Concentrated Solar Power, Morocco}}, institution = {Climate Policy Initiative}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Ouarzazate-I-CSP-Morocco-Case-Study-Summary-Poster1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }