Saudi Arabia’s ACWA Power has reportedly started work on its 160 MW concentrated solar thermal project in Morocco, according to Bloomberg.

ACWA Power was awarded the $1bn contract to work on the plant back in September of last year, beating bids from three other parties – including Abu Dhabi-based TAQA. The deal will see the Moroccan government buy power from the site under a 25-year deal.

The firm’s Ouarzazate project is part of a larger plan to add 500 MW of solar capacity at the site, located around 120 miles from Marrakesh.

The report says that ACWA Power Ouarzazate, the unit running the scheme, has awarded construction contracts to a Spanish consortium that includes Acciona, Sener and TSK.

The scheme is targeting a start to commercial operations in the second half of 2015, and is just the first part of much larger plans in the country to add 2GW of solar capacity by 2020.