Concentrated solar power (CSP) utilizes mirrors or lenses to concentrate a large area of sunlight, or solar thermal energy, onto a small area. It then uses conventional power plants to generate electricity from heat. CSP systems produce full-load power for several hours after sunset using thermal storage. Common applications of CSP systems include utility-scale solar power plants as well as industrial process heat generation. The thermal storage feature allows CSP power plants to produce electricity even when the sun is not shining, giving them a significant advantage over photovoltaic solar power.

The global concentrated solar power market is estimated to be valued at US$ 5.86 Bn or Mn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the key drivers for the high growth of the concentrated solar power market is the increased installation of utility-scale CSP projects across regions. CSP systems are most effective at utility-scale using large arrays of mirrors to collect sunlight over wide areas. Various governments are incentivizing the development of large CSP power plants as they provide reliable baseload renewable electricity. For instance, Spain has over 2 GW of operational CSP capacity from projects like Gemasolar. Additionally, the United States has approved numerous multimegawatt CSP projects in California and Arizona to support their renewable energy targets. The thermal energy storage capabilities of CSP also allow power generation during nighttime, making it a more dispatchable renewable option compared to solar PV. This effectively addresses the intermittent nature of solar power.

SWOT Analysis

Strength: Concentrated solar power (CSP) is a renewable and sustainable source of energy. It offers stable base load power supply over extended durations without reliance on fuel. CSP plants also provide ancillary grid services like voltage regulation and frequency control. Large scale CSP projects have the potential to generate massive amounts of clean electricity by using thousands of mirrors to focus sunlight.

Weakness: CSP technologies require direct exposure to sunlight and are dependent on weather conditions. Solar irradiation and cloud cover impact power output. Large land area is also needed for installation of CSP plants and their reflecting mirrors. High initial capital costs make CSP less competitive compared to other renewable technologies currently.

Opportunity: Many countries and regions across the world experience high direct normal irradiance levels required for efficient CSP systems. Dominant markets like US, Middle East, North Africa and parts of Asia and Latin America offer vast opportunities. Policy support through incentives, subsidies and renewable purchase obligations boost CSP adoption. Hybridization with energy storage and technologies like PV allows round-the-clock supply.

Threats: Declining costs of other renewables like solar PV and wind power increase competition for CSP. Policy uncertainties and delayed approval processes pose execution challenges. Land acquisition issues can delay large projects. Emerging PV plus storage solutions may provide cheaper alternative for load balancing.

Key Takeaways

The Global Concentrated Solar Power Market Size is expected to witness high growth over the forecast period of 2023 to 2030. Regional analysis related content comprises:

The Middle East and North Africa region leads the CSP market currently with countries like UAE, Egypt, Morocco having favorable solar irradiation conditions and government support for large scale CSP deployment. Spain, South Africa and Chile have emerged as key markets in Europe and Latin America respectively with many operational and under-construction projects. The US market is witnessing a revival led by new installations in California and Arizona states. Majority of new projects worldwide are based on parabolic trough or linear Fresnel collector designs which are commercially mature and scalable.

Key players:

Key players operating in the concentrated solar power market include Siemens AG, Genarl Electric, Abengoa, Acciona S.A., Atlantica Yield plc., Suntrace GmbH. Siemens supplies turbine-generator technology and acts as EPC for many CSP plants globally. Abengoa is a global leader in parabolic trough technology deployment. Acciona and Suntrace focus on linear Fresnel collector-based systems. Atlantica Yield owns and operates various utility scale solar power assets including CSP in the US, Chile, South Africa and other markets. Emerging players like BrightSource, SolarReserve and ACWA Power are significant developers of large CSP projects as well.

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