The objective of the Noor-Ouarzazate Concentrated Solar Power Plant Project for Morocco is to increase (a) installed capacity (megawatts) and (b) electricity output (megawatt-hours), especially during peak hours, of the Noor-Ouarzazate Solar Complex.
The project consists of two components.
(1) Financing the initial investment component consists of
(A) development of Noor-Ouarzazate II through the formation of a partnership between Moroccan Solar Energy Agency (MASEN) and a competitively-selected partner;
(B) construction of the associated facilities needed for Noor-Ouarzazate IIs operation;
(C) development of Noor-Ouarzazate III through the formation of a partnership between MASEN and a competitively-selected partner; and
(D) construction of the associated facilities needed for Noor-Ouarzazate IIIs operation.
Financing for construction of the associated facilities under sub-components (B) and (D) is covered by separate financing from donors to ONEE that has already been committed. CTF and IBRD financing is focused on construction of Noor-Ouarzazate II and III under sub-components (A) and (C).
(2) Cost mitigation mechanism component will support the acquisition of kilowatt hours (kWh) produced by the SPVs to partially cover the difference in the price at which MASEN will buy electricity generated by Noor-Ouarzazate II and III and the price at which MASEN will sell such electricity to National Office for Electricity and Water (ONEE).
MASEN will be able to withdraw funds under Component 2 on the basis of a formula that will determine the maximum amount that can be withdrawn.
This maximum amount will equal (A) the amount MASEN paid to purchase power from the Special Purpose Vehicles net of (B) revenue received from the sale of this power to ONEE and (C) any contributions made by the government towards covering the difference between (A) and (B).