San Giorgio Group Case Study: Ouarzazate I CSP Update

The Ouarzazate I CSP project achieved a final bid tariff of USD 0.184/kWh, which was 25% lower than initial projections. This reduction was driven by higher estimated annual power generation (425 GWh versus 370 GWh), lower capital costs through increased local manufacturing content (approximately 65%), and a strategic 'early-mover' approach by the winning consortium, ACWA Power. The project utilizes a public-private partnership model where the public sector assumes most political and financial risks, while the private sector manages construction and performance risks. The study concludes that the model is replicable and scalable, as evidenced by the initiation of a second phase for an additional 300MW of solar thermal energy.

• The reduction in project costs significantly lowered the required annual solar subsidy (SICS) from a forecasted USD 60 million to an estimated USD 20 million.
• The lower bid was driven by three primary factors: increased production estimates (estimated at 425 GWh annually compared to the forecasted 370 GWh), reduced capital costs, and the developer's strategic early-mover behavior.
• Capital costs were reduced by maximizing local manufacturing content, increasing it from the minimum required 30% to approximately 65% by producing components and troughs in Morocco.
• The project is among the least expensive large-scale solar thermal plants built between 2010 and 2012, with only the KVK Chinnu Solar Thermal plant in India's Rajasthan state having lower investment costs at USD 3,400/kw.
• The Ouarzazate I model is being replicated in a second phase that aims to install an additional 300MW of solar thermal energy, utilizing both parabolic-through mirrors (200MW) and solar tower technology (100MW).

APA

Frisari, G., & Falconer, A. (2013). San Giorgio Group Case Study: Ouarzazate I CSP Update. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Ouarzazate-I-CSP-Update.pdf

Chicago

Frisari, Gianleo, and Angela Falconer. San Giorgio Group Case Study: Ouarzazate I CSP Update. Climate Policy Initiative, 2013. https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Ouarzazate-I-CSP-Update.pdf.

Wikipedia

{{cite report |last1=Frisari |first1=Gianleo |last2=Falconer |first2=Angela |title=San Giorgio Group Case Study: Ouarzazate I CSP Update |publisher=Climate Policy Initiative |date=May 2013 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Ouarzazate-I-CSP-Update.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{frisari2013san, author = {Frisari, Gianleo and Falconer, Angela}, title = {{San Giorgio Group Case Study: Ouarzazate I CSP Update}}, institution = {Climate Policy Initiative}, year = {2013}, month = may, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2012/08/Ouarzazate-I-CSP-Update.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }