From the period of 2022 to 2028, the Global Concentrated Solar Power Market is expected to reach USD 8.04 Billion in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 9.3%.
One of the primary aspects driving the market's positive outlook is a large increase in demand for renewable energy sources for power generation to reduce carbon emissions around the world. Solar power has become the most popular renewable energy source since it is inexpensive and decreases energy expenses. As a result, various countries are investing in solar panel installations to generate electricity. As a result, governments around the world are supporting renewable technologies by providing tax credits and installation cost subsidies. In addition, the rising demand for high thermal storage salt solutions across CSP power plants, owing to their high-capacity utilisation factor (CUF) and lower levelled cost of electricity (LCOE), is driving market growth. Other key factors expected to fuel market expansion include technological advancements to improve the heat transfer and thermal storage capabilities of storage salts, as well as the growing usage of efficient heat and thermal storage solutions across renewable power plants.
Key Highlights from the Report
- The utilities industry is growing because to key CSP project developments in Asia Pacific, the Middle East, and Africa, particularly in China, Saudi Arabia, the United Arab Emirates, and Morocco. In addition, the utility industry's demand for concentrating solar power is driven by the need to generate renewable electricity with storage technology in order to meet the expanding power demands of the residential sector. Due to favourable government efforts and legislation encouraging the use of renewable energy sources, the business is expected to grow.
- By technology, the solar power towers sector led the concentrating solar power market. Higher temperatures benefit the solar power tower section, which can boost steam cycle efficiency and reduce water demand for condenser cooling. By utilising thermal energy storage, the higher temperature enables for schedulable power generation. The solar power tower category is expected to increase at the quickest rate throughout the forecast period as a consequence of lower costs or the capacity to store more energy for the same price.
- Asia Pacific is the fastest regional segment in terms of growth. This is due to the growing number of Concentrated Solar Power plants being constructed in countries such as China. China is predicted to grow at the quickest rate starting in 2021. This is due to the country's increased investment in CSP for grid stabilization. Furthermore, the region emphasizes the importance of long-term renewable energy generation to support growing economic activities. The Asia-Pacific area is rapidly industrializing and urbanizing, increasing the demand for reliable power.
The Drive for Advanced Solar Energy Technologies will Attract Market Investment
Major industry players are now working on bringing in more advanced technology, which will raise present power generation, as solar energy installations have expanded, and higher operating efficacies have been documented around the world. New heat transfer fluids are being tested, such as high-temperature salts, sCO2, and prop pants, to boost heat transfer capability with minimal losses. Additionally, researchers are developing novel receiver coatings that will lower the quantity of light deflected away.
Steps to Reduce the Cost of Various CSP System Equipment Will Fuel Capacity Additions
Governments can take initiatives to minimise the cost of CSP systems as Concentrated Solar Power becomes more popular in different nations. Because these systems have a variety of operating advantages and are highly efficient, they are projected to play a significant role in helping many countries meet their green energy goals in the coming years. As a result, decreased installation costs will attract investors, and CSP will be integrated into utilities on a global scale. The US government, for example, is working on strategies to minimise the cost of CSP systems by providing incentives.