EUV source power is critical for advanced lithography, for achieving economical throughput performance and also for minimizing stochastic patterning effects. Power conversion efficiency can be increased by recycling plasma-scattered laser radiation and other out-of-band radiation back to the plasma via retroreflective optics. Radiation both within and outside of the collector light path can potentially be recycled. For recycling within the collector path, the system uses a diffractive collection mirror that concomitantly filters all laser and out-of-band radiation out of the EUV output. In this paper we review the optical design concept for power recycling and present preliminary plasma-physics simulation results showing a potential gain of 60% in EUV conversion efficiency.