Concentrating Solar Power Market Report 2025 (Global Edition)

Current Scenario of Concentrating Solar Power

KEY OPPORTUNITY OF CONCENTRATING SOLAR POWER

• The use of concentrating solar power (CSP) in desalination and enhanced oil recovery (EOR) processes, increases its market capacity.

Solar energy can be used to generate heat for a wide variety of industrial applications, including water desalination, and enhanced oil recovery. A renewable energy-driven process called solar desalination turns salty or brackish water into freshwater. A clear condensing plate that is angled and positioned over a feedwater basin filled with salted water characterizes conventional solar desalination plants. Enhanced oil recovery also known as tertiary recovery is the process of extracting oil that has not been retrieved through secondary or primary oil recovery techniques. This integration of CSP EOR and desalination helps to address the water shortage and even extend the lives of oil fields in the Middle East region. CSP can facilitate power generation even in remote locations and integration with EOR. It is estimated that this technology will produce 20% of oil production by 2030, which will help to extend the lives of oil fields. In the Middle East and Africa region, 5% of the population survives on less than 1% of freshwater being supplied. When access to fresh water becomes a priority then desalination becomes a viable and strict solution. This integration of CSP with desalination helps to reduce costs and ensure an ample supply of safe water.

The Australian government has taken concrete steps to provide clean water by sanctioning various desalination projects.  Long-term decreases in rainfall in Perth have had a major effect on dam flows, and desalination plants are now Perth's main source of water. 47% of the city's water supply in 2020–21 came from the water generated by the Southern Seawater Desalination Plant and the Perth Seawater Desalination Plant. The ashalim project of Israel uses parabolic trough technology with molten salt thermal energy storage. Ashalim Plot A, a 121-megawatt parabolic trough facility owned by Negev Energy, has a thermal energy storage capacity of 4.5 hours. A solar power tower is located at Ashalim Plot B (Megalim). With its 121-megawatt installed capacity, it can concentrate 50,600 computer-controlled heliostats, which is enough electricity to power 120,000 households. With the concentration of solar power, it is expected to grow significantly during the forecast period.

Source (https://issuu.com/monkeymediamagazines/docs/utility_feb_2022_web_magazine/s/14393227)

KEY DRIVERS OF CONCENTRATING SOLAR POWER

• Growing adoption of renewable sources for power generation to boost the market.

Over the past ten years, renewable energy sources have gained prominence due to the world's increasing demand for endless energy sources and the need to reduce carbon emissions. With the growing number of CSP installations, the global capacity at the end of 2010 was 1.3 GW, and by 2019, it had expanded to almost 6 GW. With increasing numbers of investments scheduled for the upcoming years, it is anticipated that this trend of renewable energies becoming a larger part of every country's power mix will continue. Presently, almost 29% of the world's electricity is generated from renewable sources; this percentage is predicted to increase exponentially in the next years, propelling the market's expansion. Governments of multiple countries are incentivizing renewable energy generation in the form of tax credits, grants, and loan programs, which have encouraged investors and project developers to shift towards renewable power generation. Such favorable initiates have also facilitated the maturity of these technologies on a commercial scale.  The government of India has set a target of installing 175 GW of renewable energy capacity by 2022, this includes 60 GW from wind 10 GW from biopower 100 from solar, and 5 GW from small hydro power. 

Source https://pib.gov.in/newsite/PrintRelease.aspx?relid=180728

Similarly, the Spanish government raised its renewable energy target to 74% by 2030, and the government aims to add 157 GW of renewable energy capacity. These new targets can be achieved by CSP projects along with policy support for them. Additionally, CSP technologies use solar energy to generate power that is eco-friendly and less expensive as compared to available fossil fuels. This would further propel the growth of CSP technologies during the forecast period. The rise of wind and photovoltaic solar power underscores the need for renewable technologies to ensure electricity supply reliability. However, these variables' production fluctuations must be managed carefully to avoid network reliability issues and potential voltage drops or blackouts. The shift of approach from nonrenewable to renewable sources of energy generation and consumption due to the growing demand for electricity due to rapid industrialization and urbanization promotes CSP in the market.

• Higher efficiency and lower operating cost as compared to solar PV to aid growth.

Many nations are searching for highly efficient systems that can generate a lot of power as they work hard to lower their carbon emissions. The ideal option for this would be concentrated solar power plants, which can generate power more efficiently and at a lower cost of operation than solar photovoltaic systems. These systems are also scalable to huge capacity and can use thermal storage to meet the supply demand. This component, which is crucial to any power plant, is dependent on several variables in the case of CSP, including the capture area, the temperature at which the transfer fluid reaches, and the reflective mirror's ability to concentrate solar light. 

Efficiency in today's operational systems is understood to be between 20 and 40 percent; these are comparable, and even higher, values than those of photovoltaic solar energy, the other major system that turns solar energy into electricity, whose commercial efficiency is between 18 and 26 percent. Although they are less than combined cycle power plants that use natural gas (45 percent to 50 percent), the conversion efficiency values of CSP plants can also compete successfully with coal or nuclear power plants, whose energy efficiency is roughly 35 percent. The primary driver for the integration of CSP technology into the energy mix on par with other, more established renewable technologies like photovoltaic or wind power is its storage capability, in conjunction with energy efficiency. The main benefit of CSP facilities is their ability to store thermal energy for 10 to 15 hours. Because of this capability, the electricity demand curve and the production curve of CSP facilities match precisely, ensuring that continuous supply may be guaranteed around the clock. Based almost exclusively on molten salt technology, the amount of thermal energy stored in CSP reactors was anticipated to be 23 GWh at the end of 2021.

Source (https://www.bbvaopenmind.com/en/technology/innovation/pros-and-cons-concentrated-solar-power/)

KEY RESTRAINTS OF CONCENTRATING SOLAR POWER

• Higher cost of generation compared to other renewable technologies.

Concentrating solar power is highly capital-intensive in technology. The components used in solar towers include heliostat fields, power blocks, receiver fields, thermal energy storage, and towers. the levelized cost of energy of CSP plants is dominated by initial investment costs, which account for approximately four-fifths of the total cost. As per IRENA, in parabolic trough technology, the solar field is the most expensive component, which accounts for 35 – 49% of the total installed costs of the projects. The heat transfer fluid accounts for 8-11% of the total costs in the project examined. This resulted in the biggest restraint for concentrating the solar power market. Additionally, clients may choose solar PV installation over this technology for residential and commercial locations due to the demand for a big area. Concentrated solar power (CSP) has numerous benefits but is largely dependent on location, requiring large land areas for operation. It uses a lot of water, potentially causing environmental issues and attracting animals. CSP plants are expensive to run due to the cost of thermal energy storage materials like molten salt. Competition from other energy sources like solar PV and fission-based nuclear power also hinders CSP's development and potential obsolescence. As advancements in other areas continue, CSP faces the risk of becoming obsolete. Moreover, a significant disadvantage of the system is that the average cost of electricity produced by CSP is USD 0.20/kWh, but the average cost for solar PV is between USD 0.5-0.10/kWh. If the roll-outs continue to pick up steam, pricing for electricity generated using CSP technology should continue to drop in the upcoming years. The new plants will benefit from economies of scale, technical advancements, and improved construction and operational efficiencies.

Source (https://efaidnbmnnnibpcajpcglclefindmkaj/https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2012/RE_Technologies_Cost_Analysis-CSP.pdf)

HOW DID COVID-19 IMPACT CONCENTRATING SOLAR POWER MARKET?

The COVID-19 pandemic has significantly impacted the renewable energy industry, causing a global supply chain to be severely impacted. The shortage of laborers in many countries has led to ongoing projects being put on hold for an unspecified timeline. Around 40% of solar tracker imports are from China, which has been the first nation to be heavily impacted by the pandemic. As a result, solar modules and equipment have been halted in China, halting the global market. Government bodies and private companies have pushed forward commissioning dates for certain projects, affecting investments and pipeline projects. 
The International Energy Agency (IEA) predicted a 7% increase in renewable capacity additions in 2019, with 191 GW of new installations connected to the grid. Solar PV was the dominant player, reaching 109 GW. However, China's PV additions declined for the second year in a row to 30 GW. Other markets, such as the United States, the European Union, Brazil, and Vietnam, outpaced expectations. Wind power saw its second-largest expansion since 2015, driven by faster growth in China and the European Union. Global additions were expected to hit a record in 2020 before declining in 2021 due to policy-driven developments in major markets. To address these concerns, several countries have introduced policy changes, positively influencing the outlook, particularly for 2021. Existing renewable electricity plants are mostly sheltered from both lower electricity demand and declining prices. Transport biofuel production plants have idled or reduced their output and reduced commercial, industrial, and construction activities during the lockdown resulting in a demand shock for most heat-intensive industries, particularly for large bioenergy consumers like the cement and wood industries.
However, the solar energy industry is expected to recover quickly compared to other industries like oil and gas, driving investments in CSP technology in many countries and driving the market at a healthy rate. 

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Concentrating Solar Power Market is witnessing significant growth in the near future.

In 2023, the Parabolic Trough segment accounted for noticeable share of global Concentrating Solar Power Market and is projected to experience significant growth in the near future.

The Residential segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies BrightSource Energy , Esolar and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

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