Testing whether emerging technologies can overcome cost barriers is a critical part of GEF’s catalytic role. 

This thematic review examined the GEF’s portfolio of four solar thermal power (STP) projects in India, Egypt, Morocco, and Mexico, approved between 1996 and the late 1990s under Operational Program 7 (OP7). STP technology, one of the most cost-efficient options for large-scale solar electricity generation, remains too costly to compete widely in power markets, making cost reduction and market transformation central to GEF’s support.

Drawing on project documents, interviews with industry actors and project staff, and analysis of international technology trends, the review assesses whether these projects are contributing to cost declines or other industry changes, and how they relate to broader market developments. While full operating experience is still limited, the study emphasizes that GEF’s investments represent an important step toward testing commercialization pathways and linking developing countries with global STP innovation.

The review concludes that parabolic trough plants are currently the most viable technology, but further scale-up and cost reductions across all STP designs will be essential for long-term competitiveness.