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Concentrated Solar Power (CSP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

  • ID: 4987293
  • Report
  • April 2022
  • Region: Global
  • 125 Pages
  • Mordor Intelligence

FEATURED COMPANIES

  • Abengoa SA
  • Acciona SA
  • ACWA Power
  • Brightsource Energy Inc.
  • Engie SA
  • eSolar Inc.

The global concentrated solar power (CSP) market is expected to register a CAGR of more than 7.5% during the forecast period of 2022-2027. The COVID-19 pandemic disrupted the market temporarily. The pandemic led to lockodowns which resulted in difficulties of sourcing equipment for the active projects. Furthermore, the lockdown also resulted in shutdown of commercial and industrial facilities which casued the electricity demand to dip which further affected the operation of exisitng facilities. In terms of growth of the market factors such as declining cost of CSP components coupled with increased adoption of renewable energy sources to limit emissions are likely to drive the concentrated solar power market during the forecast period. However, rapid decline in installation costs of solar photovoltaic (PV) plants, coupled with increased capacity factors, has improved the economic competitiveness of solar photovoltaic (PV) projects, worldwide. This makes CSP less lucrative, when compared to solar PV, due to several drawbacks, including high CAPEX, OPEX, and its limitation to utility scale. This is expected to hinder the market for CSP during the forecast period.



Key Highlights

  • The molten salt technology is expected to dominate the market during the forecast period. This technology accounts for 75% of the projects and is able to dispatch electricity outside peak sunshine hours.
  • The Middle-East and Africa is expected to provide opportunities for CSP market in the near future. This is due to the planned investment which is focused on mobilizing concessional financing and grants to help CSP scale up in the region coupled with abudant solar resources in the region.
  • Europe has dominated the concentrated solar power market, with the majority of the demand coming from countries like Spain, Germany, United Kingdom, etc.

Key Market Trends


Molten Salt Segment to Dominate the Market

  • Molten salts of sodium and potassium are used as heat transfer fluid in CSP plants due to their capability to operate at temperatures beyond 500°C. They improve power efficiency to about 40%, and reduce the levelised cost of electricity (LCOE). However, due to the comparatively low freezing point of about 250°C, a high amount of auxiliary power is required during shut-off periods, to keep them in molten state.
  • Molten salt technology accounts for 75% of the thermal energy storage developed for electricity application across the world. These applications also support CSP projects and dispatch electricity outside peak sunshine hours.
  • Several projects are underway of such technology type owing to declining CSP costs and increasing shift towards renewable energy sources as a measure to contain emissions. In 2015, the installed CSP capacity stood at 4750 MW, that rose upto 6379 MW in 2020.
  • In February 2022, the Redstone Concentrated Solar Power Project, South Africa's largest renewable energy investment, achieved its first debt drawdown. The project is led by ACWA Power along with Central Energy Fund, Pele Green Energy and the local community. The plant is based on the molten salt technology where the solar energy will be channelled from the heliostats to heat up the molten salt in the tower located at the center. The plant is expected to start operating by the end of 2023.
  • Also, in September 2021, China started the construction of USD 3 billion Golmund Project that consists of a CSP, PV and thermal storage, collectively accounting for 3.3 GW. The molten salt CSP plant planned capacity is 300 MW. The project is likely to be completed by the end of 2025.
  • Hence, the molten salt heat transfer fluid is expected to dominate the market for concentrated solar power during the forecast period.

Europe to Dominate the Market

  • European countries receive significantly high number of 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.
  • Europe’s installed CSP capacity is predicted to rise from 2.3 GW at the end of 2020 to 4 GW by 2030, based on current costs and market frameworks.
  • In Europe, Spain has been leading the CSP market after the United States, driven by the country's government support schemes and feed-in tariffs.
  • The country has been the undisputed world’s largest market for concentrated solar power installation since 2010. The whole of concentrated solar thermal power plants in the region accounted for 37 % of total installed capacity in the world in 2020.
  • In November 2021, the European Commission approved the EUR 2.27 billion, three year incentive program planned by Greece to drive the deployment of more renewable energy generation capacity. The program is set to run untill 2025 and the Greek government aims to achieve 4.2 GW of renewables generation capacity. The programs includes concentrated solar power technology as well other than solar pv, wind, biogas, biomass, landfill, etc.
  • Furthermore, in November 2021, SENER Renewable Investments launched the first hybrid solar project in Spain that merges CSP technology with molten salt storage and photovoltaic technology. In its current configuration, the Solgest-1 plant has a CSP unit with a storage capacity of more than 6 hours and a gross power generation of 110 MWe, making it capable of generating electricity at night or in cloudy weather.
  • In October, 2021, the Ministry for the Ecological Transition and Demographic Challenge, Spain, planned to launch a third renewable auction for the solar thermal, biomass and other technologies complying with the auction calendar that it announced last year. The Spain government plans to put into play 200 MW of CSP.
  • Hence, with the increasing installed capacity, the European region is expected to dominate the CSP market during the studied period.

Competitive Landscape


The concentrated solar power (CSP) market is consolidated. Some of key players in this market include Abengoa SA, Acciona SA, ACWA Power, Brightsource Energy Inc., and Engie SA.



Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support


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Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Abengoa SA
  • Acciona SA
  • ACWA Power
  • Brightsource Energy Inc.
  • Engie SA
  • eSolar Inc.

1 INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2 RESEARCH METHODOLOGY3 EXECUTIVE SUMMARY
4 MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Installed CSP Capacity and Forecast in xMW, till 2027
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.2 Restraints
4.7 Supply Chain Analysis
4.8 Porter's Five Forces Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes Products and Services
4.8.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Technology
5.1.1 Parabolic Trough
5.1.2 Linear Fresnel
5.1.3 Power Tower
5.1.4 Dish/Stirling
5.2 Heat Transfer Fluid
5.2.1 Molten Salt
5.2.2 Water-Based
5.2.3 Oil-Based
5.2.4 Other Heat Transfer Fluids
5.3 Geography
5.3.1 North America
5.3.2 Europe
5.3.3 Asia-Pacific
5.3.4 South America
5.3.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Abengoa SA
6.3.2 Acciona SA
6.3.3 ACWA Power
6.3.4 Brightsource Energy Inc.
6.3.5 Engie SA
6.3.6 SolarReserve LLC
6.3.7 eSolar Inc.
6.3.8 Torresol Energy
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Note: Product cover images may vary from those shown

A selection of companies mentioned in this report includes:

  • Abengoa SA
  • Acciona SA
  • ACWA Power
  • Brightsource Energy Inc.
  • Engie SA
  • SolarReserve LLC
  • eSolar Inc.
  • Torresol Energy
Note: Product cover images may vary from those shown

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