Concentrated Solar Power Market Size, Share & COVID-19 Impact Analysis, By Technology (Parabolic Trough, Power Tower, Linear Fresnel), By Application (Residential, Non-Residential, Utility) and Regional Forecasts, 2020-2027

The global concentrated solar power market size was valued at USD 34.12 billion in 2019 and is projected to reach USD 90.02 billion by 2027, exhibiting a CAGR of 14.1% during the forecast period. 

Concentrated solar power (CSP) involves the use of mirrors to concentrate the received sunlight, a central focal point. Here this energy is converted into heat, which then can be used to produce steam to drive a turbine or can be used as industrial process heat. These systems can integrate thermal energy storage systems, which can be used to 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 CSP 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, the production of solar modules and concerning equipment was being halted, which brought the global market at a halt.

Following this condition, government bodies and private companies have pushed forward the commissioning dates for certain projects, which were to be brought in operation in the coming months. This will certainly affect the investments being done 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 as compared to other industries such as oil and gas. This will propel the investments for concentrated solar power 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 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 that is reflected away.

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

As the concentrated solar power is now being adopted across different countries, steps are being taken by governments to reduce the cost of CSP systems. These systems offer various operational advantages and are highly efficient, these are expected to play a major role in achieving green energy targets or many countries in the coming years. Therefore, lowering the cost of CSP installation will attract investors, and it 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 these systems by offering incentives.

DRIVING FACTORS

Growing Adoption of Renewable Sources for Power Generation Will 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 6.3 GW in the year 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 CSP 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 systems that are highly efficient 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 generating power 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 the concentrated solar power is the heavy capital investment to be made for installing a CSP plant. Also, the requirement of a large area may lead customers to prefer solar PV installation over CSP 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 2018, 60% used the parabolic trough technology. Power towers are expected to have a healthy growth owing to their higher efficiency and better capability of storing 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 as 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 share of the utility segment in the CSP market.

REGIONAL INSIGHTS

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Europe has dominated the market over the years. Spain has been the leading country for CSP 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 CSP projects. In 2016, Europe and North America together formed approximately 3/4th of the global market, which has now been reduced to 50% in 2019. Asia Pacific has witnessed a substantial increase between 2016-2019, with projects being commissioned in India and China. China has rolled out plans for 20 CSP pilot projects to be run within the country starting from 2016.

In Latin America, Chile and Mexico are the countries having CSP plants under construction and are expected to be in operation in 2021. In the Middle East, the construction of the largest CSP plant is under construction in UAE, which is expected to be in operation by the end of 2019. No projects were announced in North America and Europe during 2018, and other regions had contracts awarded and projects coming to operation. This acts as a healthy sign for the market as it gains momentum in other region and attracts more investments.

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 that are 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 the CSP installations. These companies are working towards establishing a strong foothold in the market as investments for CSP are expected to get a boost in other regions such as Asia Pacific and the Middle East. With the growth of the market, the other industry players such as Sener, Abors Green GmbH, Solar Reserve are expected to have ample opportunities, which will lead towards a competitive market sales in the coming years.

LIST OF KEY COMPANIES PROFILED:

• BrightSource Energy (United States)


• Abengoa Solar (Spain)


• Siemens (Germany)


• Acciona (Spain)


• Solar Reserve (United States)


• 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 about the contract it secured from Shanghai Electric for the supply of a glandless pump package. The provided equipment would be used for the installation of a 950MW hybrid solar project at Bin Rashid Al Maktoum Solar Park Phase IV. The project will involve 600 MW from 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 applications of the product. 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 growth of the market over recent years.

Report Scope & Segmentation