- KfW rated Morocco’s Noor I solar thermal plant the highest across OECD-DAC criteria, praising its strong energy output, cost efficiency, and effective international coordination.
- The evaluators flagged sustainability concerns related to high water usage and falling reservoir levels, threatening the plant’s long-term viability.
The German Development Bank (KfW) has awarded Morocco’s Noor I Ouarzazate solar thermal power plant the highest score based on the six criteria of the OECD’s Development Assistance Committee (DAC). This top rating follows a detailed and extensive evaluation process.
Noor I, one of the world’s largest solar energy complexes, is now officially considered a technological success. Although the plant faced technical faults in the past, experts have fully resolved these issues. Today, Noor I is a key part of Morocco’s strategy to lead Africa’s clean energy transition.
The Moroccan government launched the Noor solar complex to shift its energy system towards renewable sources. According to the African Development Bank, the country aims to generate 52% of its energy from renewables by 2030. The broader project spans 3,000 hectares and includes four plants. Since 2016, it has operated with financial support from KfW and the German government.
Significantly, Noor I exceeds its expected energy output. While it was designed to produce 370 gigawatt-hours (GWh) annually, it currently delivers about 424 GWh. This strong performance has set the foundation for future success at Noor II, Noor III, Noor IV, and Midelt.
The plant also delivers significant environmental benefits. It avoids nearly 240,000 tonnes of CO₂ emissions, helping it achieve a perfect score in the impact category. Moreover, Noor I was the first large-scale project in Morocco to use concentrated solar power (CSP). This technology helped it achieve the highest score in the relevance criterion, as it meets the country’s domestic energy demand.
CSP uses mirrors or lenses to focus sunlight onto a receiver, which converts the heat into electricity. The energy can be stored, making it possible to generate power even when the sun isn’t shining. Additionally, CSP can produce more electricity than photovoltaic systems. However, the technology requires a lot of water for cooling, which strains local water resources.
The project’s strong public-private partnership also impressed KfW evaluators. A steering committee of German and international institutions ensured excellent coordination, earning the plant a perfect consistency rating. The partnership mobilised about $126 million.
Key contributors to the project included Germany’s Federal Ministry for Economic Cooperation and Development, Germany’s Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection, and the German Agency for International Development Cooperation. International institutions involved were the African Development Bank, the French Development Agency, the European Investment Bank, and the World Bank.
The final cost of Noor I was also lower than expected. While the initial budget was €750 million, the final spending was just under €634 million, 16% less. The project also created 1,900 jobs and supported 300 social initiatives. Financially, it returned 3.4%, far above the initial forecast of 0.9%.
However, KfW’s evaluation highlighted concerns about the project’s long-term sustainability. One issue is its dependence on water from the El Mansour Eddahbi reservoir, which is currently experiencing alarming drops in water levels. In addition, the Moroccan Solar Energy Agency (MASEN) faces operational challenges.
Despite this, KfW concluded that Noor I serves as a model for countries like Chile and the United Arab Emirates. The Moroccan Agency for Sustainable Energy is now preparing the shortlist of companies for the Noor III mega-project, signalling continued commitment to clean energy growth.
In summary, Noor I is not just a local success. It’s a global example of how concentrated solar power can drive sustainable development when supported by strong international partnerships and thoughtful planning.