EDF Power Solutions and Masdar are nearing financial close for the Noor Midelt 1 solar and energy storage project in Morocco, seven years after the contract award, according to two sources familiar with the process.

The European Investment Bank (EIB) and Germany’s KfW-IPEX Bank are expected to provide the bulk of debt financing required by the project, featuring a 632 MW solar PV farm and 1.3 GWh of battery energy storage system (BESS) capacity, one of the sources said, with financial close expected “within weeks”.

An EIB spokesperson confirmed the timeline for reaching financial close and its participation in financing the project, citing it is “a strategic priority for the EIB in Morocco”.

At the time of the contract award in 2019, the project, which was then expected to also include concentrated solar power (CSP), was estimated to require roughly EUR 2bn  to EUR 2.7bn of investment, given the high cost of CSP.

However, the CSP element was removed and the project was converted into an integrated solar PV and BESS, as Infralogic reported in 2024, something that is expected to significantly bring town the capex of Noor Midelt 1, according to one source. Sources added that EDF and Masdar are looking at an 80% leverage for the scheme.

The decision was partly led by the COVID-19 pandemic and a reported disagreement among Moroccan government stakeholders on the staggering cost of CSP technology, sources added.

EDF Power Solutions and Masdar will have a 35% and 30% stake in the Noor Midelt 1 SPV, respectively. Other investors in the project include local investor and developer Green of Africa (GOA) with 10% and state utility and procurer of the scheme Moroccan Agency for Sustainable Energy (Masen) with 25%, one of the sources said..

Masdar announced at the time of the award that the scheme would provide dispatchable solar energy during the day and until five hours after sunset for a peak-hour tariff of MAD 680 (USD 71) per megawatt-hour upon completion.

Masen separately tendered two more contracts in 2024 for the Noor Midelt 2 and 3 projects, to be located within the same complex as Noor Midelt 1. Noor Midelt 2 and 3 each have a 400 MW solar PV capacity supported by two-hours of energy storage, with ACWA winning both contracts last year, as reported.

Neither scheme, however, has reached financial close so far, according to a third source. Morocco has set an ambitious goal for “clean” sources to account for 52% of its total installed power generation capacity by 2030, the highest target set by any Middle East and North African state to date.

EDF, Masdar, GOA, Masen and KfW did not respond to requests for comment.