Middle-East Thermal Energy Storage Market - Growth, Trends, and Forecasts (2020-2025)

The market for the thermal energy storage in the Middle-East is expected to grow at CAGR of more than 2.5% in the forecast period of 2020-2025. Factors like increasing the installation of solar power, primarily Concentrated Solar Power projects, increasing demand for thermal energy storage systems for heating, ventilation, and air conditioning (HVAC) applications are expected to drive the market during the forecast period. On the other hand, increasing competitiveness from battery storage systems because of their falling price and simple maintenance is expected to have a negative impact on the growth of the thermal energy storage market in the coming years.

• Power generation is the primary application sector, where the demand for a thermal energy storage unit is expected to rise significantly in the coming years.
• With upcoming ambitious renewable projects related to solar energy, the demand for energy storage is expected to increase and create ample opportunities for the market players in the near future.
• In the Middle-East, with CSP projects holding an installed capacity of more than 400 MW as of 2019, and upcoming projects coupled with government initiatives, thermal energy storage is expected to witness considerable growth in the forecast period.

Key Market Trends

Power Generation Sector to Dominate the Market

• During low power demand time, excess generated power can be stored by charging a thermal energy storage system. The stored power can be utilized later during peak demand hours, assisting in stable electricity generation.
• Electricity generation in the Middle-East region witnessed significant growth with 1073 TWh in 2014 to 1240 TWh in 2018. The surge in electricity is also expected to drive the demand for thermal energy storage systems.
• In Kuwait, the addition of Shagaya Renewable energy park with 10 MW of solar PV, 10 MW of wind power, and 50 MW of thermal energy storage based on molten salt with a capacity of nine hours is a highly ambitious project that is expected to be completed during the forecast period.
• In 2019, Israel built Ashalim concentrated solar power and thermal electric power plant, which host the largest CSP tower in the world. The project is based on molten salt for energy storage which is adding 300 MW of electricity to the grid.
• With an increasing population and increasing demand for power, the deployment of thermal energy storage systems in the region is expected to grow in the forecast period.

Increasing Deployment Renewable Energy Installed Capacity to Drive the Market

• In the Middle-East, with CSP projects holding an installed capacity of more than 400 MW as of 2019 and upcoming projects and initiatives, the thermal energy storage market is expected to witness considerable growth in the forecast period.
• Inthe 2017, with the initiation of the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park, the 700 MW CSP project was expected to host the world’s tallest solar tower, at 260 meters, and the largest thermal energy storage capacity in the world of 15 hours. With the completion of the central tower in early 2020, the project is estimated to be operational in coming period.
• Middle-East has shown a robust growth in CSP installed capacity in 2019. From 156 MW in 2018 to 448 MW in 2019, the capacity has tripled, which also increased the capacity of the thermal energy storage system considerably.
• From 187 MW in 2015 to 1885 MW in 2019, the United Arab Emirates has shown large-scale renewable energy installed capacity, which subsequently is expected to drive the demand for energy storage systems.
• Therefore, with the projects mentioned above and with ambitious renewable goals, the Middle-East region is expected to witness considerable growth in the thermal energy storage market in the coming years.

Competitive Landscape

The Middle-East thermal energy storage market is moderately consolidated. Some of the major companies include Bright Source Energy, Inc., Abengoa Solar S.A., Acwa Power Barka SAOG, Amper SA, TSK Electronica y Electricidad SA, and others.

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