The Climate Investment Funds’ Clean Technology Fund (CIF CTF) has approved a $25 million loan for Morocco for a project to generate solar power through an innovative hybrid concentrated solar power (CSP) and Photovoltaic (PV) solution.

The Midelt Phase I Concentrated Solar Power Project is being supported by the African Development Bank (AfDB) and the World Bank with an additional allocation of $25 million in CTF resources.

The project consists of two separate CSP plants, each with 150-190 MW CSP capacity and a minimum of 5 hours of thermal storage. The envisaged installed capacity of the PV component could reach approximately 150-210 MW, making the total capacity of each of the proposed plants 300-400 MW and the total capacity of this first phase 600-800 MW.

The project’s innovative hybrid solar design is also built on a unique Public-Private Partnership between the Moroccan Agency for Sustainable Energy (Masen) and private sector sponsors – with a Build, Own, Operate and Transfer project structure and implementation approach. Selected sponsors are expected to form a Special Purpose Company to build and operate the plants and sell the generated electricity to Masen under a 25-year Power Purchase Agreements. The process will be designed to allow the award of the plants to different bidders.

“In 2015, the world saw an important shift in CSP investment from the developed to the developing world, particularly in Morocco,” stated Anthony Nyong, AfDB’s director, Climate Change and Green Growth.

“Morocco’s path-changing Noor CSP programme under CTF, for which we serve as implementing agency, has been a critical element of that shift. This new project, which will be modelled on the Noor operational and financial structure, will increase the development of solar energy and further help diversify the country’s energy mix and enhance its energy security. We believe that the project can serve as a model for other countries in the region and beyond,” he added.

The project will significantly contribute to the Government of Morocco’s achievement of its Nationally Determined Contribution under the Paris Agreement, including its goal of achieving 52 per cent of installed capacity from renewable energy (20 per cent from solar) by 2030. Morocco’s Solar Plan will also contribute to industrial development, competitiveness and could create about 30,000 jobs.