by Concentrated solar power (CSP) uses mirrors to concentrate sunlight onto a receiver that collects solar energy and converts it into heat. This thermal energy can then be used to drive traditional steam turbines or engines that generate electricity. CSP systems offer significant advantages as they can store thermal energy enabling electricity generation even when the sun is not shining, which significantly enhances grid reliability. The global CSP market provides cost-effective renewable energy solutions to meet increasing power demands.
The global Concentrated Solar Power Market is estimated to be valued at US$ 5.86 Bn in 2023 and is expected to exhibit a CAGR of 10.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Utility-scale projects dominate the CSP market as huge investments are being made to develop utility-scale plants with capacities of over 100 MW. For example, concentrated solar power plant ‘NOORo III’ opened in Morocco in 2021 with a total capacity of 150 MW. Such large scale projects helps increase power reliability while reducing cost per unit of electricity. Advancements in technologies like thermal energy storage systems is also driving the CSP market. New molten salt storage systems have enhanced thermal energy storage capacity enabling power generation well after sunset. This is boosting interest in CSP plants for round-the-clock renewable power production.
Porter’s Analysis
Threat of new entrants: Low economies of scale and large initial investment required to enter the concentrated solar power market make it difficult for new companies to enter.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes. However, concentrated solar power being environment friendly attracts buyers.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternative components. However, technological expertise required gives them an edge.
Threat of new substitutes: Solar PV is major substitute but concentrated solar power has advantage of thermal energy storage.
Competitive rivalry: Intense competition due to presence of global players differentiation difficult.
Key Takeaways
The Global Concentrated Solar Power Market Size is expected to witness high growth. The market size for 2023 is US$ 5.86 Bn registering a CAGR of 10.8% during the forecast period.
Regional analysis: Europe dominates the concentrated solar power market currently due to supportive government policies and initiatives. Countries like Spain, France and Italy are major markets. Asia Pacific is expected to grow at fastest pace led by China and India on back of rapid installation of concentrated solar power plants to meet renewable targets.
Key players: 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. These major players are focusing on strategic partnerships, new technologies and regional expansion to gain more market share.
