The direct steam generation (DSG) in parabolic trough collectors is an attractive option regarding the economic improvement of parabolic trough technology for solar thermal electricity generation in the multi Megawatt range. The European DISS project has proven the feasibility of the direct steam generation under real solar conditions in more than 4000 operation hours. Within the European R&D project INDITEP the detailed engineering for a pre-commercial DSG solar thermal power plant with an electrical power of 5 MW is being performed. This small capacity was chosen to minimise the risk for potential investors. In regards to DSG solar thermal power plants, only steam cycles using superheated steam have been investigated so far. The paper will investigate the advantages, disadvantages, and design considerations of a steam cycle operated with saturated steam for the first time. For near term applications, saturated steam operated DSG plants might be an interesting alternative for power generation in the small capacity range due to some specific advantages: • Simple set up of the collector field. • Proven safe collector field operation. • Higher thermal efficiency in the collector field.