One of the most important challenges in the future will be the constant supply of renewable energy. The technology of concentrated solar power (CSP) could offer a solution: it is possible to collect thermal energy and convert it into electricity. CSP plants have a distinct advantage over other renewable energies, because a thermal energy storage system (TES) can be integrated into the power plant layout. A TES can be charged during excess periods and later be discharged when there is a shortage of thermal energy. This concept leads to a more reliable supply of energy. With the “INNOLAT” – Project the Fraunhofer Institute for Solar Energy Systems (ISE) tries to develop a new latent heat storage system in conjunction with steam/water for the use in CSP plants. The innovation of the concept is the screw heat exchanger (SHE). With this special heat exchanger it is possible to transport the latent heat storage medium during heat exchange. Moreover it is possible to uncouple the heat exchange surface from the storage size, i.e. an increase in storage size does not increase the heat exchange area. To investigate the economic feasibility of the concept, a detailed cost structure of the direct steam generating CSP plant with latent heat storage will be presented. Two storage system configurations will be analyzed: one with three storage tanks, the other one with two tanks and a fossil fuel booster heater. An exergy analysis for the two storage systems will be performed and the process parameters will be fixed. The computer software ColSim will be used to develop system simulations of direct steam generating CSP plants with the two different TES. Annual yield simulations will be conducted and the electrical output of the CSP plant will be evaluated. With the electrical output and the investment costs the levelized costs of energy (LCOE) will be calculated. LCOE can be used to compare the investigated CSP plants with other renewable energy sources as well as with conventional power plants.