Like any other projects, solar power projects need to be initiated, planned, executed and operated. The solar project life cycle extends up to 40 years. During its operation cycle, the plant produces electricity with almost fixed costs without any use of fossil fuel. The project initiation is normally triggered by the government or its bodies either by direct tendering or indirectly through investment incentives. The duration of the initiation, planning and execution phases of a solar power plant project varies from one country to another and depends on how improved is the supply chain of a certain technology. For instance, a photovoltaic utility scale plants would be erected in few months, whereas a concentrating solar power plant needs a couple of years to be erected.
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In sunny regions of the world, e.g. in the Middle East and North Africa, the levelized cost of energy produced from solar power plants lies between 7 to 13 Eurocents. Therefore, solar power projects provide a good opportunity to install sustainable and reliable power production capacities to satisfy the growing power demands in the growing economies of a certain region. In this context, international initiatives such as Desertec and Mediterranean Solar Plan (MSP) introduced concepts and possible frameworks for a better implementation of solar power projects in sunny and abundant desert regions to supply not only the region’s communities with electricity but also neighboring regions, e.g. Europe. The power production costs from solar power projects, according to these initiatives, will be reduced to be only some few cents through the large scale implementations including the power transmission costs.