Concentrated Solar Power Market Forecasts to 2028 - Global Analysis By Capacity (=<50 MW, >50=<100 MW, >100 MW), Technology (Dish Stirling/Engine Systems, Enclosed Trough), Storage, Component, End User, and By Geography
According to Stratistics MRC, the Global Concentrated Solar Power Market is accounted for $4.06 billion in 2021 and is expected to reach $12.17 billion by 2028 growing at a CAGR of 17.0% during the forecast period. Concentrated solar power energy is generation of electricity via mirrors to concentrate the sunrays to the temperature varying between 400 and 1,000 °C. This energy is then usually employed in various applications such as heating fluid, mainly water or oil, which in turn produces steam or hot air. The steam produced is used to drive turbines connected to a generator to generate electricity. There are different types of mirror shapes and sun-tracking methods to provide useful energy, but all of them work under a same principle of driving a heat engine to generate electricity that can then be fed into the grid.
Rising environmental concerns
The rise in environmental issues based on carbon emissions results in focus to decrease air pollution as well as rise in awareness of global warming. The carbon emission is increasing in the environment and is one of the prime anthropogenic causes of climate change. This carbon emission is caused mainly due to the burning of fossil fuels such as coal, oil, and gas or cutting down and burning of trees. Various concrete steps, such as conserving energy at home or office, purchasing of portable gasoline containers which are labeled as "spill-proof,", use of public transportation, use of renewable source of energy, such as biomass energy, wind energy, solar energy, hydro energy, tidal energy, and geothermal energy are being undertaken to reduce air pollution. Therefore, this factor is anticipated to drive the concentrating solar power market growth.
Capital intensive technology
The Levelized Cost of Energy (LCOE) of concentrating solar power plants is dominated by the initial investment cost, which accounts for approximately four-fifth of the total cost. Hence, the concentrating solar power is a highly capital-intensive technology. The components used in parabolic trough include solar fields, power blocks, thermal energy storage systems, heat transfer fluid systems. The key components used in solar towers include heliostat fields, receiver fields, power blocks, thermal energy storage, and tower. The rest is the cost for maintenance and operation of the plant and for plant insurance thereby making it the biggest restraint for the concentrating solar power market.
Growing integration in hybrid power plants
Hybrid power plants are considered as the power plants that use two or more technologies and may include natural gas, biomass, oil, hydropower, geothermal power, storage, solar CSP, solar PV, nuclear power, wind turbines, and coal. Hybrid plants can also be used to generate electricity or any other products, such as hydrogen. Several hybridization options with different energy sources for concentrating solar power are available, ranging from conventional fossil fuels to biomass and other concentrating solar power or other renewable combinations and thereby creating opportunities for concentrating solar power market.
The concentrating solar power technology is comparatively complex in nature than solar PV and requires expensive components and precise engineering. Concentrating solar power (CSP) can be built in 1 to 3 years, depending on its size and may be operated for more than 30 years. In addition, large volumes of water required for concentrating solar power plants is an additional threat for concentrating solar power market.
The solar power tower segment is expected to be the largest during the forecast period
The solar power tower segment is estimated to have a lucrative growth. The solar power tower segment is getting a boost owing to the higher temperatures that can allow higher efficiency of the steam cycle and decrease water consumption for cooling the condenser. Power tower technology of the market is witnessing a large-scale adoption, specifically in nations with land availability, as large areas form a criterion for installing power towers. The higher temperature uses thermal energy storage for achieving schedulable power generation. Therefore, growing adoption of solar power towers due to reduction in cost or allowing greater storage for the same price is anticipated to drive the solar power tower segment at the highest rate during the forecast period.
The > 100 MW segment is expected to have the highest CAGR during the forecast period
The > 100 MW segment is anticipated to witness the fastest CAGR growth during the forecast period. Increasing investment toward construction of large solar power plants along with decline in CSP associated capital expenditure will augment the industry growth. Integration of renewable sources across the power grid coupled with growing utilization of clean energy across the industrial sectors will further complement the industry demand. Growing applicability of large CSP power generating plants to produce high temperature steam, electricity and heat storage systems will fuel the technology demand. Major utilities are focusing on the development of high-capacity power towers owing to stringent government norms to increase the sustainable power across the total energy mix will further thrust the market progression.
Region with highest share:
Europe is projected to hold the largest market share during the forecast period owing to the growing need to produce continuous renewable power to support rising economic activities. European countries received the maximum hours of sunshine. The region primarily had an essential role in the development of solar power. Substantial prices for grid-connected solar power were provided to encourage the industry. Spain has been the leading country for concentrated solar installation in the region. The presence of leading global players and the high success rate of the initial projects have been the catalyst for the country's lion share in the global market. Hence, with the increasing installed capacity, the Europe is expected to dominate the CSP market during the studied period.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period due to the growing in installations of concentrating solar power (CSP) plants. China is projected to grow at the highest CAGR during the forecast period. This is mainly due to the increasing investment in concentrating solar power for stabilizing power grid which is driving this country. Constant increase in population and improvement in lifestyle have supplemented the growth of the Asia-Pacific CSP market. Furthermore, growth in manufacturing industries, rise in economic growth rate, increase in foreign investments, and universal shift in production capacities from developed to emerging economies drive the Asia-Pacific CSP market. Furthermore, the region focuses on the need to generate continuous renewable electricity to support growing economic activities.
Key players in the market
Some of the key players profiled in the Concentrated Solar Power Market include Aalborg CSP A/S, Abengoa Solar, S.A, ACWA Power, Archimede Solar Energy, Baysolar CSP, Chiyoda Corporation, Cobra Energia, Esolar, Inc, Frenell GmbH, General Electric, GlassPoint Solar, Hayward Tyler, Nexans, Novatec Solar, Shams Power, Shouhang, Siemens AG, Solarreserve, LLC, Soltigua, Torresol Energy, Brightsource Energy, Inc, and TSK Flagsol Engineering GmbH.
In May 2020, Abengoa formed a consortium with Acciona to build the Cerro Dominador solar thermal plant owned by EIG Global Energy Partners. The consortium has led the melting process of 46,000 tons of salts from the Chilean Atacama Desert having a capacity of 110 MW.
In March 2020, Shouhang Hightech Energy Technology Co., Ltd (Shouhang) signed the Cooperation Agreement on Investment with the government of Gansu Province for the Jinta 100MW Molten Salt Tower Concentrating Solar Power Project. The project is expected to be completed by the end of 2021.
In January 2020, Hayward Tyler announced the contract it secured from Shanghai Electric to supply a glandless pump package. The provided equipment would be used to install a 950MW hybrid solar fields project at Bin Rashid Al Maktoum Solar Park Phase IV. The project will involve 600 MW from a parabolic basin complex, 100 MW from a solar thermal tower, and 250 MW from PV panels.
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Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.