Concentrated Solar Power (CSP) Market Size, Share & COVID-19 Impact Analysis, By Technology (Parabolic Trough, Power Tower, Linear Fresnel), By Application (Residential, Non-Residential, Utility) and Regional Forecasts, 2021-2028

The concentrated solar power (CSP) market size was USD 37.25 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the concentrated solar power industry witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, this market exhibited growth at a stagnant pace of 6.3% in 2020. The market is expected to grow from USD 41.68 billion in 2021 to USD 119.52 billion in 2028 at a CAGR of 16.2% in the 2021-2028 periods. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

Concentrated solar power involves the use of mirrors to concentrate the received sunlight, a central focal point. Here this energy is converted into heat, which can then be used to produce steam to drive a turbine or be used as industrial process heat. These systems can integrate thermal energy storage systems, which can generate electricity during cloudy periods and the absence of sunlight. Several modern technologies such as parabolic troughs, fresnel reflectors, and power towers are available for this technology, and depending upon the given conditions, the best one can be deployed.

Harmful Effects of COVID-19 on Renewable Energy

The COVID-19 crisis has had an alarming effect on the entire renewable energy industry. The global supply chain has been heavily impacted as the imports of raw materials came to a halt for a certain period. The CSP plants require a huge human force to be on the field to complete the installations, and the lockdowns in many countries have resulted in a shortage of laborers. Many ongoing projects have been put on hold for an unspecified timeline across the globe due to the import dependency and logistical delays. Around 40% of the imports of solar trackers and other required equipment are from China, which has been the first nation to be heavily impacted by the COVID-19 threat. In China, acknowledging the growing destruction, solar modules and concerning equipment were being halted, which brought the global market to a halt.

Following this condition, government bodies and private companies have pushed forward the commissioning dates for certain projects to be brought into operation in the coming months. This will certainly affect the investments being made in the market in the coming years and delay the pipeline projects. But on the brighter side, the solar energy industry is expected to be back on track in a short period compared to other industries such as oil and gas. This will propel the investments for CSP technology in many countries around the globe and therefore drive the market at a healthy rate.

LATEST TRENDS

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Push Towards Advance Solar Energy Technologies Will Attract Investment in the Market

As solar energy installations have increased and higher operating efficacies recorded across the world, major industry players are now working on bringing in more advanced technologies, which will boost the current power generation. New heat transfer fluids such as high-temperature salts, sCO2, proppants are being tried, which increase the heat transfer capability with minimum losses. Also, researchers are working on new coatings for receivers, which will reduce the amount of light reflected away.

Steps to Decrease the Cost of Various Equipment in CSP System Will Fuel Capacity Additions

As concentrated solar power is now being adopted across different countries, governments can take steps to reduce the cost of CSP systems.  As these systems offer various operational advantages and are highly efficient, these are expected to play a major role in achieving green energy targets for many countries in the coming years. Therefore, lowering the cost of installation will attract investors, and CSP would be integrated into utilities on a global scale. For instance, the U.S. government is working on measures that would reduce the cost of CSP systems by offering incentives.

DRIVING FACTORS

Growing Adoption of Renewable Sources for Power Generation to Boost the Market

The growing demand for never-ending energy sources and the need to control carbon emissions across the globe has put renewable energy sources in the limelight over the last decade. Considering the increasing CSP installations, the global capacity at the end of 2010 was 1.3 GW, which has grown exponentially to reach more than 6 GW in 2019. This trend of growth in renewable energies in the power mix of every nation is expected to continue with more and more investments planned in the coming years. Currently, renewable sources account for around 29% of the total electricity generation across the globe, which is expected to rise at an exponential rate in the coming years and therefore drive the growth of the market.

Higher Efficiency and Low Operating Cost as Compared to Solar PV to Aid Growth

As several countries are putting in strong efforts to reduce carbon emissions, they are looking for highly efficient systems and produce a large amount of power. Concentrated solar power plants can stand as the best possible solution for this as these are capable of power generation with higher efficiencies and lower operating costs as compared to solar PV. Also, these systems can use thermal storage to match the supply-demand and are scalable to large capacities.

RESTRAINING FACTORS

Heavy Capital Investment and Higher Cost of Electricity Per Unit Poses Threat to Market Growth

The key market restraint for this market is the heavy capital investment to be made for installing this plant. Also, the requirement of a large area may lead customers to prefer solar PV installation over this technology at residential and commercial locations. Further, the average cost of electricity generated by CSP is USD 0.20/kWh, and for solar PV, it is between USD 0.5-0.10/kWh, which stands as a major drawback of the system.

SEGMENTATION

By Technology Analysis

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Preference of Parabolic Trough Systems Over Others Will Drive the Growth of this Segment

Based on technology, the concentrated solar power market is segmented into the parabolic trough, power tower, and linear Fresnel. Parabolic trough being the most advanced amongst the available technologies is expected to lead the market. Also, it requires less capital investment as compared to its counterparts. Out of the projects granted in 2019, 45% used the parabolic trough technology. Power towers are expected to have healthy growth due to their higher efficiency and better capability to store energy.

By Application Analysis

Growing Solar-Grid Integration Will Drive the Growth of Utility Segment

In terms of application, the market is segmented into residential, non-residential, and utility. As the concentrated solar power installation requires huge capital investment, their penetration at residential and commercial centers is very low compared to utilities. CSP installation for utilities help in managing the power demand, peak load shaving and allow integrated thermal storage with varying time for varying technologies. These factors have led to the lion's share of the utility segment in the global market. Furthermore, numerous financial and economic benefits, including Feed-in Tariffs (FiT) and tax credits offered by several governments across the globe, will augment the segment growth.

REGIONAL INSIGHTS

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The concentrated solar power market has been analyzed geographically across five key regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. In the Middle East, the UAE, Morocco, and South Africa are the major contributors to the Concentrated Solar Power (CSP) market growth. The growing need to produce continuous renewable power to support rising economic activities is boosting the market growth in the region.

In Europe, Spain has been the leading country for concentrated solar installation in the region. The presence of leading global players and the high success rate of the initial projects have been the catalyst for the country’s lion share in the global market. Following Europe, North America has maximum operating concentrated solar projects. In 2016, Europe and North America together formed approximately 3/4th of the global market, which has now been reduced to around 60% in 2019. In North America, the U.S. has many CSP projects with an installed capacity of 1,741 MW.

The Asia Pacific has witnessed a substantial increase between 2016 and 2019, with projects commissioned in India and China. China has rolled out plans for 20 concentrated solar pilot projects to be run within the country starting from 2016. In September 2019, Power China Gonghe 50MW Molten Salt Tower Project was successfully connected to the grid. In Latin America, Chile and Mexico have concentrated solar plants under construction and are expected to operate in 2021.

KEY INDUSTRY PLAYERS

Siemens, Abengoa Solar, BrightSource Energy Are Amongst the Leading Players in the Market

The competitive landscape of the concentrated solar power market depicts a market dominated by companies focused on technological advancements that lead to increased efficiencies at a lower production cost. Companies such as Siemens, BrightSource, and Abengoa Solar have a strong presence in Europe and North America, which are the leading CSP installations. These companies are working towards establishing a strong foothold in the market as investments in this technology are expected to boost in other regions such as the Asia Pacific and the Middle East. In December 2019, BrightSource Energy developed a new kind of absorber coating, i.e., solar-cured coating, for the Dubai Electricity & Water Authority (DEWA) Tower project. The coating was designed for extended service lifetime and higher absorption than the standard Pyromark coating and to help reduce O&M costs.

With the market's growth, the other industry key players such as Sener, Abors Green GmbH, Solar Reserve are expected to have ample opportunities, which will lead towards a competitive market for CSP sales in the coming years.

LIST OF KEY COMPANIES PROFILED:

• BrightSource Energy (U.S.)


• Abengoa Solar (Spain)


• Siemens (Germany)


• Acciona (Spain)


• Solar Reserve (U.S.)


• ACWA Power (Saudi Arabia)


• Torresol Energy (Spain)


• Trivelli Energia (Italy)


• Abors Green GmbH (Germany)


• Parvolen CSP Technologies (Greece)


• Sener (Spain)


• Rioglass (Belgium)

KEY INDUSTRY DEVELOPMENTS:

• In March 2020: Shouhang Hightech Energy Technology Co., Ltd (Shouhang) signed the Cooperation Agreement on Investment with the government of Gansu Province for the Jinta 100MW Molten Salt Tower Concentrating Solar Power Project. The project is expected to be completed by the end of 2021.


• In January 2020: Hayward Tyler announced the contract it secured from Shanghai Electric to supply a glandless pump package. The provided equipment would be used to install a 950MW hybrid solar fields project at Bin Rashid Al Maktoum Solar Park Phase IV. The project will involve 600 MW from a parabolic basin complex, 100 MW from a solar thermal tower, and 250 MW from PV panels.

REPORT COVERAGE

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The concentrated solar power market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation