Concentrated Solar Power Technology Witness Growth 10.8% – EQ Mag Pro
The concentrated solar power industry is predicted to witness growth at a CAGR of 10.8% in next 7 years. Increase in government support for the adoption of renewable technologies coupled with rise in energy demand & capability to supply power without CO2 emission drive the growth of the market.
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.
Thus, concentrated solar power energy is a carbon-free source of electricity and is best suited to regions with strong radiation such as Southern Europe, Northern Africa and Middle East, South Africa, parts of India, China, Southern U.S., and Australia.
Increase in government support for the adoption of renewable technologies coupled with rise in energy demand & capability to supply power without CO2 emission drive the growth of the market. Furthermore, rise in environmental issues based on carbon emissions results in focus to decrease air pollution as well as rise in awareness of global warming. This factor is also expected to fuel the market growth.
However, high cost incurred during concentrated solar power energy production hinders the market growth during the forecast period. Moreover, rise in investment from different industries in renewable sources and increase in acceptance of heat storage systems are the factors that represent great opportunities for the market.
Concentrating solar power market outlook appears competitive due to several notable players forming a competitive landscape. Technology providers strive to increase production capacities with improved cost efficiency and a leaner organization supported by new possibilities offered by digitalization. Many of them are exploring the possibility of new development after mastering their existing product lines.
Rise in Renewable Energy Generation Shares Drives the Market Growth
The concentrating solar power market outlook appears promising mainly due to the continually growing energy demand worldwide. Additionally, the rise in CSP installations in commercial & industrial and utility-scale applications positively impacts the concentrating solar power market growth.
The use of thermal energy storage tanks is much easier than storing electricity. As a result, CSP is often dispatchable even when the sun isn’t shining. This is a major factor boosting the concentrating solar power market size. In addition, growing government initiatives and investments in large CSP plant installations benefit the concentrating solar power market revenues.
High Costs Associated with Installation and Maintenance of CSP Restrict the Market Growth
Concentrated solar power systems tend to be large, utility-scale projects capable of providing a lot of electricity as a power source to the grid. Resultantly, CSP systems require a significant amount of land with direct sunlight. Unlike solar PV, they’re not used in residential applications. Limited availability of places to build these types of systems impedes market growth.
Besides, a concentrated solar power system is an expensive technology in terms of installation costs and Levelized cost of energy (LCOE) compared to solar PV. Also, being newer technology, CSP requires more specialized technology and installation practices, increasing the overall costs of these projects.
COVID-19 Impacts on the CSP Market
The novel COVID-19 pandemic did not affect much to the concentrating solar power industry. The pandemic increased the energy demand, reassuring a robust rise in the renewable energy market. Due to the increased energy demand, especially from the industrial sectors, the renewable energy market kept growing steadily throughout 2020.
Also, the cost of renewable continued to fall in 2020, despite disruptions of the pandemic. The cost of electricity from utility-scale concentrating solar power declined by 16% during 2020 alone. The concentrating solar power market is rapidly returning to normal and is projected to pick up further.
Highlights
The market is segmented into technology, components, end-users, and regions. The technology segment is sub-segmented into parabolic trough, power tower, linear Fresnel, and dish/engine system. Among these, the parabolic trough segment accounts for the largest market share, witnessing applications in all major end-use industries, such as enhanced oil recovery, utilities, and mining, and others.
The component segment is sub-segmented into solar field, power block, and thermal storage. The end-user segment is sub-segmented into utilities, EOR, and others. The region segment is sub-segmented into Europe, Americas, Asia Pacific, and rest-of-the-world.
The Asia Pacific region dominates the global concentrating solar power market. The region accounts for one of the largest producers and consumers of power globally. The region also largely relies on renewable power generation, making vast investments. Rising focus on developing renewable energy sources, especially India, China, and a few South Asian countries, boosts the region’s concentrating solar power market size.
Besides, the ample renewable/ natural resources and raw materials advantages increase the region’s markets share. With their significant investments, China, Japan, and India account for major concentrating solar power market shares. Japan also contributes colossally to the regional market growth.
The key players contributing in the global concentrated solar power industry growth include Abengoa, Acciona, SolarReserve, BrightSource Energy, ACWA Power, GE Energy, Suntrace, SCHOTT, Frenell GMBH, and Siemens. In order to stay competitive in the concentrated solar power industry, these market players are adopting strategies such as acquisition, partnership, product launch, and agreement.
Abengoa is actively present in the high growth concentrated solar power market of China. Abengoa have been participating with engineering and technology in two of China’s commercial CSP projects in progress, which include 50MW Yumen Royal Tech Parabolic Trough and 50MW Luneng Haixi Molten Salt Tower CSP plants.
Source: jioforme
