Casablanca – The Noor Ouarzazate III solar power plant remains out of service due to a persistent technical issue, extending its downtime until at least the end of the first quarter of 2025. Initially expected to resume operations in late 2024, the prolonged shutdown has now led to financial losses exceeding $51 million, impacting majority shareholder Acwa Power and its Moroccan partner, Masen.

Technical challenges leading to delays

Noor Ouarzazate III, a 150 MW solar power plant, has faced multiple operational challenges since its commissioning in 2018. The current shutdown, which began in early 2024, is caused by a critical failure in the molten salt thermal storage system—an essential component that allows the plant to generate electricity even after sunset.

The complexity of the repairs has led to repeated delays, with Acwa Power confirming that operations are now expected to restart in April 2025. “In early 2024, a technical failure in the molten salt storage system forced the plant to halt operations. The shutdown is now expected to continue until the end of the first quarter of 2025,” stated the Saudi-based company, which holds a 75% stake in the project.

Escalating financial impact

The ongoing shutdown has significantly increased the financial burden on stakeholders. Initially projected at $47 million, the total losses have now exceeded $51 million. Acwa Power has recorded an impairment of approximately $51 million in its 2024 financial statements, with around $38.3 million directly affecting the company’s bottom line.

A critical element in Morocco’s energy transition

As part of the larger Noor Ouarzazate solar complex, which has a total capacity of 580 MW, Noor Ouarzazate III plays a key role in Morocco’s renewable energy strategy. The plant utilizes concentrated solar power (CSP) technology with a central solar tower and molten salt storage, allowing it to provide electricity for up to eight hours after sunset.

This technology is essential for stabilizing the national grid during peak demand periods—between 5 PM and 10 PM in winter and 6 PM and 11 PM in summer. Before its shutdown, the plant supplied electricity to approximately 500,000 households.

Project development and persistent issues

The project was awarded in 2015 to a consortium led by Acwa Power, with Spain’s Sener Ingeniería y Sistemas as a technical partner. The plant was built under a turnkey EPC (Engineering, Procurement, and Construction) contract by a joint venture including Sener, Sepco III Electric Power Construction Corporation (China), and Power China.

The total project cost reached $719 million, with around $591 million allocated to construction. Ownership of the plant is split between Acwa Power, which holds a 75% stake, and Masen, which owns the remaining 25% through its subsidiary Masen Capital.

Despite its advanced technology, Noor Ouarzazate III has struggled with repeated operational issues. In 2019, molten salt leaks led to a year-long shutdown from June 2019 to May 2020. These recurring failures have raised concerns about the long-term reliability of its thermal storage system.

Future outlook

Noor Ouarzazate III remains a vital component of Morocco’s renewable energy ambitions, but its extended downtime presents challenges for both energy security and financial sustainability. Its anticipated return to service in 2025 will be crucial in restoring its role in the country’s clean energy supply and mitigating further financial setbacks.