Several major trends are affecting the Concentrated Solar Power (CSP) market, which shows how important it is to the green energy environment.
Adding energy storage is one of the most important trends in the CSP market. As the need for dispatchable and stable green energy grows, CSP systems are adding more and more energy storage options, like molten salt or thermal storage, to keep making electricity even when the sun isn't out. This trend fixes the problem of solar power going out and on all the time, making CSP a stable and adaptable source of green energy. It's in line with larger market trends that stress grid security and the need for dispatchable green power to help make the switch to a more sustainable energy mix.
Using CSP along with other types of sustainable energy is becoming a major trend. Combining CSP with photovoltaic (PV) solar, wind, or other energy sources in hybrid power plants is a more flexible and unified way to make green energy. This trend makes the best use of space, makes plants more efficient overall, and makes sure there is always power. The way that different green technologies work together in hybrid systems shows a deliberate trend toward getting the most out of each energy source. This makes the energy grid more stable and robust.
A bigger focus on flexible and scalable CSP solutions is changing the way the market works. Scalability is easier with modular CSP designs, which let developers change projects to fit different energy needs and site conditions. Aiming to make CSP easier to use and flexible so it can fit different project types and rollout situations, this trend is in line with that. Scalable and flexible CSP technologies give people a lot of freedom, which fits with the market trend of making solutions that can change to different energy needs.
The search for new ways to finance concentrated solar power projects also affects market trends. As the industry grows older, new ways to pay for CSP projects are appearing, such as public-private partnerships, green bonds, and project finance methods. People are becoming more aware of how economically viable CSP is and how important it is to find new ways to finance projects. The creation of new funding models helps the market trend of making CSP projects more accessible and economically viable, which supports growth in the green energy industry.
These days, local production and strong supply chains are big trends in the CSP market. As nations try to improve their own green energy sources, they are putting more effort into creating local production and supply chain environments for CSP parts. This trend fits with the bigger goal of making energy more secure and encouraging economic growth in the area. By putting money into local production, countries become less reliant on imports. This creates jobs and helps the CSP business grow in many places.
New technologies in CSP are resulting in the creation of more advanced collection designs and next-generation materials. This is pushing market trends toward making things more efficient and less expensive. Better mirrors, receivers, and heat transfer fluids help make the system more thermally efficient and lower its operating costs. This trend shows that people are still interested in making technology progress, which makes CSP a competitive and long-lasting choice for green energy.
Report Attribute/Metric | Details |
---|---|
Market Opportunities | · New product launches and research & development among various companies |
Market Dynamics | · Initiatives by the government to enable renewable technologies |
Concentrating Solar Power Market Size was valued at USD 5.9 Billion in 2023. The Concentrating Solar Power market industry is projected to grow from USD 6.91 Billion in 2024 to USD 21.11 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.98% during the forecast period (2024 - 2032). Growing environmental concerns over carbon emissions and initiatives by the government to enable renewable technologies are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The deployment and expansion growth are driving market CAGR for Concentrating Solar Power. One driving factor behind this expansion is the increasing recognition of CSP's unique advantages, including its ability to provide baseload power, dispatch ability, and potential for hybridization with other energy sources. CSP plants are often integrated with conventional or photovoltaic systems, creating hybrid power plants that offer a more stable and reliable electricity supply.
Moreover, government support through favorable policies and financial incentives has played a crucial role in the market expansion of CSP. Various countries have implemented feed-in tariffs, tax incentives, and renewable energy targets to promote the adoption of CSP technology. These initiatives have attracted investments and encouraged the development of CSP projects, thereby contributing to the market's growth trajectory.
Additionally, one prominent trend in the CSP market is the continuous advancement of technology to enhance capability, reduce costs, and improve the overall performance of CSP systems. Innovations such as advanced receiver designs, heat transfer fluids, and thermal energy storage systems have significantly increased the conversion efficiency and operational flexibility of CSP plants.
Furthermore, research and development efforts are focused on next-generation CSP technologies, such as tower systems with higher temperatures and more efficient photovoltaic-thermal hybrid systems. These advancements are expected to further enhance the competitiveness of CSP in the energy market and contribute to its widespread adoption in the coming years.
Another important trend in the CSP market is the continuous effort to reduce costs and enhance the competitiveness of CSP technology. Historically, the high capital costs associated with CSP projects have hindered their widespread deployment. However, rapid progress has been made in reducing costs through economies of scale, technological advancements, and improved project development practices.
For instance, the CSP market is seeing several major trends shaping the technology's future. These include the increasing deployment of CSP with energy storage, the increasing use of hybrid CSP-PV systems, and the increasing focus on cost reduction. As these trends continue, CSP will likely play a more important role in meeting the world's growing demand for renewable energy driving the Concentrating Solar Power market revenue.
The Concentrating Solar Power market segmentation, based on components, includes solar fields, power blocks, and thermal storage. The solar fields segment dominated the market. The solar field includes mirrors or lenses that concentrate sunlight onto a receiver. This component is crucial for capturing solar energy effectively. It consists of mirrors/lenses, tracking systems, and supporting structures.
The Concentrating Solar Power market segmentation, based on end use, includes utilities, enhanced oil recovery, and others. The utilities category generated the most income, where large-scale power plants supply electricity to the grid. These plants can provide consistent and reliable electricity, making them suitable for meeting the energy demands of cities and regions.
The Concentrating Solar Power market segmentation, based on technology, includes parabolic troughs, power towers, and linear Fresnel and dish/engine systems. The parabolic troughs category generated the most income. It uses curved mirrors arranged in a parabolic shape to concentrate sunlight onto a receiver tube containing a heat transfer fluid. The heated fluid then develops steam and drives a turbine to outgrowth electricity.
Figure 1: Concentrating Solar Power Market, by Technology, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Concentrating Solar Power market area will have significant growth in the market. The country has several large-scale CSP projects, particularly in the southwestern states with good solar resources. The U.S. government has provided financial incentives and policy support to promote CSP development. In addition, research and development efforts have focused on improving the efficiency and cost-effectiveness of CSP technologies.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Concentrating Solar Power Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's Concentrating Solar Power market accounts for the second-largest market share due to adopting renewable energy. The region is driven by ambitious renewable energy targets and the need to reduce greenhouse gas emissions. The European Union's support for clean energy initiatives and research programs has further stimulated the growth of the CSP market in the region. Further, the German Concentrating Solar Power market held the largest market share, and the UK Concentrating Solar Power market was the fastest-growing market in the European region.
The Asia-Pacific Concentrating Solar Power Market will dominate the CAGR from 2023 to 2032. The government's strong commitment to reducing carbon emissions and diversifying its energy mix has been a key driver. The region's growing population, industrialization, and need for sustainable energy sources make CSP attractive. Moreover, China’s Concentrating Solar Power market held the largest market share, and the Indian Concentrating Solar Power market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Concentrating Solar Power market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Concentrating Solar Power industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Concentrating Solar Power industry to benefit clients and increase the market sector. The Concentrating Solar Power industry has offered some of the most significant medical advantages in recent years.
Major players in the Concentrating Solar Power market, including Abengoa Solar SA (Spain), Acciona Energy (Spain), GE Renewable Energy (France), TSK Flagsol Engineering GmbH (Germany), Enel Green Power (Italy), Bright Source Energy (US), Atlantica Yield PLC (UK), eSolar Inc. (US), Solar Reserve (US), ACWA Power (Saudi Arabia), Chiyoda Corporation (Japan), Alsolen (Morocco), and others, are attempting to increase market demand by investing in research and development operations.
Abengoa, S.A., founded in 1941, and located in Seville, Spain, was a Spanish international company in the green infrastructure, energy, and water sectors. It invests in research in sustainable technology and implements the technologies in Spain as well as all over the globe.
The technologies include Concentrating Solar Power and desalination. In January 2022, Abengoa finished the construction of three 200 MW parabolic trough plants as a part of phase 4 of the Mohammed Bid Rashid Solar Park mega-project outside Dubai. The company contracted with the phase IV EPC contractor Shanghai Electric Group and oversaw the parabolic trough plants' technology, design, engineering, and construction.
Bright Source Energy, Inc., founded in 2004 and located in Oakland, California, USA, is a corporation that designs, builds, finances, and operates utility-scale solar power plants. It is one of the top 10 greentech startups in the world. In April 2019, BrightSource Energy, along with General Electric, for the project, had a 121 MW capacity solar field that became useful in 2019. GE was responsible for the solar power station's engineering, procurement, and construction (EPC), with BrightSource providing advanced solar field technology.
June 2021: ACWA made a discharging contract with Eskom Holdings SOC Ltd and secured several USD million in funding to build the biggest Concentrating Solar Power plant in South Africa. Redstone CSP is directed to have a bearing capacity of 100 MW and is ready to enter financial operations in the 4th quarter of 2023. The plant will have a 12-hour thermal storage system to cater to the power demand of nearly 200,000 homes 24/7.
March 2020: Shouhang Hightech Energy Tech. Co., Ltd. accepted the agreement on investment with the government of Gansu Province for the Jinta 100MW Molten Tower CSP Project. The project is to end by 2021.
Vast Solar in Port Augusta Australia has got Australian Renewable Energy Agency (ARENA) funding of $44 million for a 30 MW CSP Plant in February 2023.
In February of 2023, an unknown location tender floated by Engineers India Limited invited technology licensors and suppliers to come up with a new CSP project. Additionally, the company indicated that providers of functional but non-commercialized CSP technologies can take part in the bidding process.
Siemens and Hilscher teamed up in October 2022 to give their clients many communication options that could be appropriately adjusted.
Enel X and Rete Sicomoro came together in April 2022 with an alliance for energy-saving measures implementation.
Spain’s Ministry of Ecological Transition awarded some 220 MW capacity in CSP installation through auctions that would lead to the introduction of CSP projects within Spain. In addition, Spain’s Government declared the intention to hold tenders for another 600MW of CSP capacity by 2025. At its beginning stage, the solar sector is developing new projects due to growing electricity demand and aiming at reducing pollutants by shifting towards renewable energy utilization across Europe. With approximately 2.3 GWs installed as of the end of the year 2022, it is the highest number registered so far among other continents of the world.
In accordance with IRENA projections, Europe will have about four GWs installed by the year2030. For green heating industrial applications, the German Government offered a subsidy of up to fifty-five percent for installing CSP in two thousand twenty-two while at the same time trying to bring down the payback period for CSP technology below three years. This will significantly boost Germany’s installations.
In 2020, Indian Institute of Technology Madras researchers fabricated a low-cost Solar Parabolic Trough Collector (PTC) device for concentrating solar energy for industrial applications such as desalination, space cooling and space heating. It is a lightweight system that was invented and developed in India which is very efficient under various climate and load conditions.
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