Two-step thermochemical water splitting using concentrated solar power offers promising potential for green hydrogen production as a part of a future sustainable energy economy. In this study, a system and energy flow analysis of a large scale 250 kW reactor prototype is presented by using a complex 3D-simulation model. Thus, the physical dynamic system behavior and potential efficiency improvements are discussed with respect to plant design and operational strategy. Regarding the plant design, different kind of heat losses as well as the influence of reactor design parameters and material modifications are analyzed. Regarding the operational strategy, crucial control parameters as cycle durations, temperatures, and mass flow rates are varied in a broad range and analyzed with respect to plant efficiency. By comparing commonly used operational strategies, the temperature swing operation turns out to be by far more efficient than any isothermal or near-isothermal operation for the current plant concept.