At 8%+ CAGR, Concentrated Solar Power Market to reach US$ 4 Bn by 2025
As per a recent industry report put forward by Global Market Insights Inc., Concentrated Solar Power Market is forecast to register its name in the billion-dollar fraternity down the line of seven years, by exceeding a revenue of USD 4 billion by 2025 with a projected CAGR of 8.5% over 2019-2025.
Concentrated solar power market size is set to witness growth on account of growing adoption of renewable energy driven by favorable governments initiatives. For instance, in 2017, National Development & Reform Commission (NDRC) of China has drafted a policy to increase the 2030 renewable energy target from 20% to 35%. Furthermore, stringent carbon emission standards along with growing effects of global warming will drive the technological deployment.
Growing electricity demand along with increasing investments toward the enhancement of efficiency index will positively influence the concentrated solar power market growth. As per the Australian Energy Council, global electricity demand will surpass 40,000 TWh by 2030 witnessing a growth of over 30% from 2017 level. Additionally, growing need for decentralized electricity production at remote locations will further fuel the product demand.
Reduction in Levelized Cost Of Electricity (LCOE) driven primarily by reverse auction of projects and reduced O&M costs will stimulate the market growth across the forecast timeframe. According to IRENA, the LCOE of CSP projects are anticipated to fall in range of USD 0.06 to 0.10 per kWh by 2020. However, high capital cost as compared to solar photovoltaic project of comparable capacity have been diverting the investors toward a cheaper alternative.
Growing adoption of high efficiency systems along with favorable government policies will boost the power tower concentrated solar power market size. The technology will further witness growth on account of its higher working temperature, lower thermal losses and less energy transfer steps as compared to other available alternatives. In addition, shifting trends toward thermal energy storage systems coupled with its better compatibility with power tower systems will boost the technology deployment.
Relatively lower specific cost characterized by economies of scale along with growing demand for electricity will drive the >100 MW concentrated solar power market size in the forecast timeframe. As per the statistics stated by International Renewable Energy Agency (IRENA), cost of a 100 MW CSP project is nearly 12% lower than that of a 50 MW project employing the same technology. Moreover, larger reflecting area associated to larger project provide higher operating temperatures implying to better overall efficiency of the plant.
Middle East and Africa market will witness growth on account of extensive investments to suffice the stagnation in the Spain solar industry and reluctance in the North America CSP industry. Established players are focusing more toward the development of new alliances with the regional players to expand their market penetration. Countries including China, South Africa, the UAE, Saudi Arabia, and Morocco continue to encourage the local content requirement across the regional CSP programs.
Notable industry participants across the concentrated solar power market include Acciona, Abengoa Solar, GE Renewable Energy, Enel Green Power, TSK Flagsol, Suntrace, BrightSource, Atlantica Yield, Shams Power, CSP Services, SolarReserve, ACWA, Chiyoda Corporation and Therminol amongst others.
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