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| Global Concentrated Solar Power Market |
The Concentrated Solar Power Market is estimated to be valued at US$ 5.29 Bn in 2023 and is expected to
exhibit a CAGR of 10.8% over the
forecast period 2023-2030, as highlighted in a new report published by Coherent
Market Insights.
Market Overview:
Concentrated Solar Power (CSP) is a power generation technology, which utilizes
solar thermal energy by concentrating the sun’s energy using reflectors to
generate electricity through heat engines or steam turbines. CSP technologies
use mirrors or lenses with tracking systems to focus a large area of sunlight
into a small beam. The concentrated light is then used as a heat source for a
conventional power plant. The main advantage of CSP over photovoltaic systems
is that CSP systems can directly store thermal energy for several hours so that
plants can continue to generate electricity for some time even after sunset.
CSP technologies are being increasingly adopted in on-grid applications and for
hybrid setups combining fossil and renewable energy sources.
Market Dynamics:
Growing investments in renewable capacity additions is expected to drive the
growth of the Concentrated Solar Power market over the forecast period.
Electric utilities across the world are increasingly investing in renewable
energy to establish grid stability and reliability by reducing dependence on
fossil fuel based power generation. In addition, favorable government policies
and incentives related to renewable portfolio standards and carbon emission
reduction targets are encouraging Concentrated Solar Power adoption.
Furthermore, declining costs of CSP technology over the years also supports the
market growth. Lowering costs have made CSP competitive with traditional fossil
fuel sources. However, high initial costs involved in setting up CSP plants
remains one of the major challenges for market growth. CSP projects have high
upfront capital costs and have longer payback periods compared to other
renewable technologies like solar PV. Despite this hurdle, the stable energy
output capability of CSP even after sunset increases its demand.
Segment Analysis
Parabolic Trough is currently the dominating sub-segment in the concentrated
solar power market accounting for over 45% share. The sub-segment uses linear
parabolic reflectors to concentrate the sun's rays onto receivers located along
the reflector's focal point. This technology requires less land area as
compared to other CSP technologies, making it suitable for utility-grade power generation.
PEST Analysis
Political: Favorable government initiatives to promote renewable energy
adoption through tax credits, subsidies and investment are boosting the CSP
market. For instance, US government's investment tax credit for commercial CSP
systems.
Economic: Rising electricity demand worldwide along with falling LCOE of CSP
technologies will drive market expansion. However, high initial capital costs
pose challenges.
Social: Growing awareness about climate change impacts and need for clean energy
transition is increasing demand for solar power generation including CSP.
Technological: Advancements in thermal energy storage systems allow for
efficient electricity production after sunset, enhancing capacity factors of
CSP plants. Developments in receiver materials also aid in reducing costs.
Key Takeaways
The Global
Concentrated Solar Power Market is expected to witness high growth,
exhibiting CAGR of 10.8% over the
forecast period, due to increasing government support through supportive
policies and incentives. The US government's tax credit for commercial CSP
systems is a major driver expanding the market size.
Regional analysis: North America leads the CSP market currently, driven by the
US which accounts for over 95% of the regional installations. South America is
also emerging as a lucrative market driven primarily by developments in Chile.
Key players operating in the concentrated solar power market are Siemens AG,
Genarl Electric, Abengoa, Acciona S.A., Atlantica Yield plc., Suntrace GmbH,
BrightSource Energy, Inc., SolarReserve, LLC., ACWA Power, Frenell GmbH. Key
players are investing in advanced thermal storage to enhance capacity factors
and reduce levelized costs of CSP technologies. Partnerships and strategic
initiatives are also followed to gain leading positions.
Read More: https://www.rapidwebwire.com/concentrated-solar-power-market-size-and-share/