After prioritizing concentrated solar thermal energy, particularly through the Noor Ouarzazate complex, Morocco is now redirecting its investments towards photovoltaic systems integrated with battery storage. This shift is attributed to the technical challenges faced with Noor III, delays observed with Noor Midelt I, and the significant decrease in photovoltaic costs, combined with the rise of large-capacity batteries. A report from Irena confirms this trend, which aligns with a global decline in concentrated solar power (CSP).
The decline of solar thermal technology is evident internationally: Irena notes that global investments in this technology fell to $12.1 billion in 2024, marking the lowest level since 2013.
In this context of rapidly evolving technologies, Morocco is reassessing its energy choices. The country, long regarded as a pioneer in CSP thanks to Noor Ouarzazate, is now reevaluating its priorities. According to a new report from the International Renewable Energy Agency (Irena) and the Climate Policy Initiative (CPI), the country is increasingly moving toward photovoltaic projects that include storage.
The study highlights several technical and economic obstacles associated with certain CSP projects. Noor III stands out as a significant example: in 2024, this plant experienced multiple outages and malfunctions in its storage system, resulting in a nine-month shutdown and estimated losses of $47 million. In a sector where operational stability influences investor interest, such incidents have major consequences. CSP remains a demanding and more expensive technology, while photovoltaic solutions gain competitiveness.
The report also mentions the case of Noor Midelt I, a hybrid project originally intended as a CSP-PV setup for 800 MW and valued at $2 billion. Despite securing a power purchase agreement, its progress is experiencing “significant delays.” Authorities are now considering replacing the CSP component with photovoltaic systems and/or hybrid systems that incorporate battery storage.
Subsequent phases follow the same logic: according to Irena, Noor Midelt 2 and 3 were awarded in 2024 as PV + battery projects, rather than as hybrid configurations including CSP.
This redirection is driven by two key factors:
– a marked reduction in photovoltaic costs over the past decade,
– rapid development of large-capacity batteries.
Morocco is not an isolated case. Irena emphasizes that, aside from China— which accounts for 87% of CSP capacity reaching financial closure between 2023 and 2024— the sector faces several challenges: high investments, construction times four times longer than for photovoltaic systems, less expensive PV-storage solutions, and limited institutional support. Spain illustrates this situation: its tender for 220 MW of CSP in 2022 awarded no projects, and the country has postponed its goal of reaching 4.8 GW of CSP capacity from 2025 to 2030.
In parallel, photovoltaic technology is attracting most global capital. The report indicates that the sector attracted $554 billion in investments in 2024, an increase of 49% compared to 2022-2023, representing 69% of the total dedicated to renewable energy. The technology benefits from a sustained decrease in costs, bolstered by significant production capacity, particularly in China, which drives module prices down.