The Concentrated Solar Power Market is estimated to be valued at US$ 5.86 Bn 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.
Concentrated Solar Power (CSP) is a promising renewable energy technology that uses mirrors or lenses to concentrate solar radiation to generate electricity through a heat engine or a steam turbine. CSP systems use less land than conventional solar photovoltaic (PV) power as they concentrate the sun’s energy to heat a working fluid like water which is used to drive a turbine. The benefits of CSP plants include lower levelized cost of electricity as well as ability to store thermal energy for generating electricity even when sun is not available.
Market key trends:
One of the major trends driving the concentrated solar power market growth is the lowering levelized cost of electricity (LCOE) from CSP systems as their costs are declining significantly. This is attributed to technological advancements, economies of scale, improved operation & maintenance strategies, and cost-effective energy storage technologies. For instance, the LCOE from CSP plants has come down by over 50% between 2010 to 2020, making it competitive with traditional fossil fuel sources. Additionally, growing need for reliable renewable sources of baseload electricity is also propelling the demand for CSP plants given their energy storage capability. Governments across countries are increasingly supporting CSP projects through favorable policies and incentives to meet their clean energy targets, thus fostering market growth over the forecast period.
Threat of new entrants: Low- High capital requirement for establishing new concentrated solar power plant acts as a barrier for new entrants.
Bargaining power of buyers: High- Large power utilities have significant bargaining power over CSP project developers.
Bargaining power of suppliers: Low- Few component suppliers exist globally limiting buyers options.
Threat of new substitutes: High- Emerging renewable energy sources like solar PV and wind power offer substitute options.
Competitive rivalry: Intense- Increasing global capacity additions intensify competition among existing players.
Strength: Cost competitive concentrated solar power during peak demand hours; Reduced operational and maintenance costs over time due to technological advancements.
Weakness: High initial capital expenditure for establishing CSP plants; Dependency on direct sunlight availability.
Opportunity: Favorable government policies and targets for renewable capacity additions; Increasing focus on hybridization with thermal energy storage.
Threats: Subsidy cuts in key markets; Declining costs of substitute renewable technologies.
Global Concentrated Solar Power Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing focus on mitigating climate change and depleting fossil fuel reserves. Europe dominates the global CSP market currently due to supportive policies and subsidies in key markets like Spain, Italy, and France. The Americas is expected to be the fastest growing market, driven by significant capacity additions planned in the US, Chile, and Mexico.
Regional analysis Asia Pacific region is also expected to offer lucrative opportunities owing to capacity targets set by emerging economies like India and China. These countries offer attractive investment environment and focus on renewable capacity through initiatives like International Solar Alliance.
Key players operating in the Concentrated Solar Power market are Siemens AG, Genarl Electric, Abengoa, Acciona S.A., Atlantica Yield plc., Suntrace GmbH, BrightSource Energy, Inc., SolarReserve, LLC., ACWA Power, Frenell GmbH. Key players are expanding their CSP portfolio through inorganic growth strategies like partnerships and mergers & acquisitions to strengthen their regional footprint.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it