Renewable energy is a trending topic in the energy world, and solar energy has emerged as the leading source of green power so far. While various technologies have evolved and are being used to harness infinite solar power, concentrated solar power (CSP) is among the most widely used technologies worldwide, especially in regions with high solar irradiance, such as the Middle East.
The technology has faced challenges competing with photovoltaic (PV) solar due to the rapid decline in PV prices. Over the past few years, PV prices have dropped significantly, by about 30 percent to 40 percent. This reduction has made PV systems much more cost-effective compared to CSP. Moreover, solar PV systems are significantly easier to install.
CSP, however, comes with its own advantages. The intermittent nature of renewable power has increased the need for storage solutions, especially to maintain grid stability. CSP technology can store thermal energy for extended periods, making it useful for providing power when the sun isn’t shining. Several recent projects are even combining CSP with PV to leverage the strengths of both technologies. Consequently, CSP is regaining importance for low-cost thermal storage on a utility scale, making it a preferred partner technology for PV and wind in the production of green hydrogen.
The global CSP market size was valued at about USD 53 billion in 2023. Some studies project that it will grow from about USD 60 billion in 2024 to over USD 200 billion by 2032, with a compound annual growth rate (CAGR) of approximately 17 percent during the forecast period.
As of 2023, the Middle East and Africa dominated the concentrated solar power industry, accounting for over 45 percent of the global market share.
Here is a list of the five largest CSP projects in the Middle East based on their capacity:
#1 Noor Energy 1 Concentrated Solar Power (CSP) Plant
- CSP Capacity: 700 MW
- Location: UAE
Noor Energy 1, the 950 MW hybrid concentrated solar power (CSP) and PV plant, is Phase 4 of the Mohammed bin Rashid Al Maktoum Solar Plant. It is the largest single-site CSP and hybrid solar power project in the world. The project became operational in April 2023.
Noor Energy 1 CSP spans 44 square kilometers, making it the largest in the Middle East. Its central tower generates 100 MW of power during the day and uses thermal storage to supply energy to the grid for an additional 15 hours overnight or during cloudy weather. The other three units, each with a capacity of 200 MW, are parabolic trough CSP units that collectively generate 600 MW during the day and for 12 hours at night. These four CSP units, along with a 250 MW solar PV component, can deliver nearly one gigawatt of power.
#2 Noor II Ouarzazate Solar Project
- CSP Capacity: 200 MW
- Location: Morocco
The 200 MW Noor II CSP Project is a greenfield IPP developed as the second phase of the Moroccan Agency for Solar Energy (MASEN) projects at the Ouarzazate Solar Complex. Based on parabolic trough technology, this project has a capacity of 200 MW and seven hours of thermal energy storage. It was developed on a Build, Own, Operate, and Transfer (BOOT) basis.
#3 Noor I Ouarzazate Solar Project
- CSP Capacity: 160 MW
- Location: Morocco
The 160 MW Noor I CSP plant was the first phase of the Ouarzazate Solar Power Plant Project. This 580 MW solar park now includes Noor II and Noor III CSP units, along with Noor IV, a 200 MW photovoltaic system.
Located 10 kilometers north of Ouarzazate, the complex was developed as part of Morocco’s energy strategy to increase renewable energy to 52 percent of the energy mix by 2030. This location was selected for its high solar radiation intensity of 2,635 kWh/m² per year, one of the highest in the world.
#4 Noor III Ouarzazate Solar Project
- CSP Capacity: 150 MW
- Location: Morocco
The 150 MW Noor III CSP unit was developed during the second phase of the Ouarzazate Solar Project. It is complemented by Noor IV, a 70 MW photovoltaic (PV) plant, bringing the solar park’s total capacity to 580 MW.
In March 2024, the Noor III facility was temporarily shut down until at least November 2024 due to a leak in the molten salt tank.
#5 Shams 1 Solar Power Station Project
- CSP Capacity: 100 MW
- Location: UAE
Operational since 2013, Shams 1 was one of the world’s largest CSP plants at its inception and the first utility-scale CSP facility in the Middle East and North Africa. It uses parabolic trough technology and offsets approximately 175,000 tonnes of CO2 annually.
Shams 1 offsets emissions equivalent to planting 1.5 million trees or removing 15,000 cars from Abu Dhabi’s roads each year.
