Thermal efficiency, capacity factor, environmental considerations, investment, fuel and O&M-2 costs are the main parameters for technical and economic assessment of solar power plants. This analysis has shown that the Integrated Solar Combined Cycle System with 67 MW e solar field (ISCCS-67) is the most suitable plan for the first solar power plant in Iran. The Levelized Energy Costs (LEC) of combined cycle and ISCCS-67 power plants would be equal if 49 million $ of ISCCS-67 capital cost supplied by the international environmental organizations such as Global Environmental Facilities (GEF) and World Bank. This study shows that an ISCCS-67 saves 59 million $ in fuel consumption and reduces about 2.4 million ton in CO2 emission during 30 years operating period. Increasing of steam turbine capacity by 50%, and 4% improvement in overall efficiency are other advantages of ISCCS-67 power plant. The LEC of ISCCS-67 is 10 and 33% lower than the combined cycle and gas turbine, respectively, at the same capacity factor with consideration of environmental costs. (c) 2004 Elsevier Ltd. All rights reserved.