ID: MRFR/E&P/1572-HCR | 110 Pages | Published By Priya Nagrale on March 2023
Concentrating Solar Power Market is expected to be valued at USD 16.41 Billion, with a CAGR of 17.1% Forecast by 2027
The Concentrating Solar Power energy is obtained by concentrating the sun rays with the help of mirrors, the temperature of the Concentrating Solar Power ranges between 400 and 1000°C. The Concentrating sunlight is sent onto the receiver where the intense thermal energy is carried to the power block to generate electricity with the help of a heat transfer medium. The basic principle of Concentrating Solar Power systems is driving a heat engine to generate electricity that can then be fed into the grid. The major drivers of the market are due to the advantages of Concentrating Solar Power systems over other Solar energy systems. CSP systems can store solar energy for later usage, when there is higher energy demand or during cloudy days.
Concentrating Solar Power Market outlook appears to be promising due to the capability of Concentrating Solar Power systems to supply power with zero CO2 emission drive the growth of the market due to increasing awareness in reducing the carbon emissions. Several developing countries and higher economies are looking out for systems that are highly effective in generating power with minimal carbon emissions. They are also encouraging householders to incorporate solar systems to minimize carbon emissions. This prevalence of attitude has been attributed to the growth of Concentrating Solar Power Market.
The Concentrating Solar Power industry was not much affected by the novel COVID-19, however, the increasing demand for the uninterrupted power supply at hospitals and health facilities and the energy demand from the industrial sectors has attributed to the renewable energy market growth throughout the year 2020. This factor reassured a robust rise in the Concentrating Solar Power Market.
The installation operations of the Concentrating Solar Power plant require huge human force, which has become impossible due to the lockdowns. Several ongoing projects have been held for unspecified timelines across the globe due to a shortage of laborers, delays in logistics. As China is immensely affected by COVID 19, the exporting operations of solar trackers and other essential pieces of equipment employed in Concentrating Solar Power systems have been affected severely. The country accounts for about 40% of the overall export of Solar equipment. Since the production of solar modules and concerning equipment was being halted, impacted the global Concentrating Solar Power market growth.
But on the brighter side, we can expect the solar energy industry to bounce back on track soon as compared to oil or gas industries. This factor will propel the market players to invest in concentrating solar power technologies across the globe and thereby driving the market at a healthy rate.
The growing concerns over carbon emissions to the environment have propelled governments across the globe to impose strategies and regulations upon the industrial and commercial sectors. The Global Concentrating Solar Power market is expected to grow at a higher rate as it aids in cutting down the electricity bills and the technology is based on a renewable source- solar energy. Conventional electricity generation imposes a significant amount of Greenhouse gases emissions when the coal or natural gas is burnt.
The Concentrating Solar Power systems possess a dispatchable feature that the generated power can be dispatched to the smart power grid at their request. Also, the storage capacity of the systems is considered a key factor that drives the market. The current technology in Concentrating solar power systems enables them to store thermal energy over 16 hours.
The Concentrating Solar Power industries utilize the heat transferring fluids to transfer the heat from the absorbers to the engine, these fluids are also known as thermo-fluids. Synthetic hydrocarbon oils are preferred for their excellent heat transferring capability and lower viscosities. They are capable of operating at higher temperatures of up to 400°C. In other cases, hydrocarbons like Phenylnapthalene are utilized in CSP applications as they can withstand higher temperatures of above 500°C and are liquid at room temperatures. Owing to the varied availability of the heat transfer fluids and their favorable features aids in increasing the Concentrating Solar Power market.
Concentrating Solar Power Market opportunities:
Compared to the other solar systems, Concentrating Solar Power systems are efficient because of the storage capacity which is crucial in countries that suffer higher power demand and lower energy productivity, Countries that receive moderate to low solar energy are also benefitted from the Concentrating Solar Power systems due to their storage capacities. Thermal energy storage tanks are utilized by the Concentrating Solar Power systems to store the thermal energy to use when the energy demand is higher. This factor has caused the advent of newer technologies to the market and thereby increased the overall Concentrating Solar Power market growth.
The hybridization of the two or more solar systems also assures the Concentrating Solar Power market growth. Integrating various technologies with the Concentrating Solar Power Systems and utilizing different energy sources is possible, this flexibility of the Concentrating Solar Power systems is considered as a key market opportunity.
The U.S Department of Solar Energy Technologies Office continues to support the Concentrating Solar Power Systems and helps in improving the performance, lifetime, components, reliability of the materials utilized and thereby reducing the cost of electricity. The research shows that the novel innovations have helped in cutting electricity costs by 50%. The SETO continues to work in its goal of reaching $0.05 per Kilowatt per hour.
Concentrating Solar Power Market Restraints:
Concentrating Solar Power Systems are highly capital-intensive owing to the intricate technologies and installations. This is considered as the key market restraint.
The components used are also highly specific for an effective operation. Molten Salts have been utilized by major Concentrating Solar Power Systems, as they are capable of operating in higher temperatures up to 800°C. But the downside of using the Molten salt for heat transfer suffers freezing problems. Liquid metals like Sodium, lead or their alloys are employed in some Concentrating Solar Power Systems, they also possess serious safety hazards and they possess lower heat capacities. Alkali metals possess the risk of reacting to air and water and might lead to accidental fires.
Concentrating Solar Power Market Challenges:
The cost reduction of PV systems has seriously impacted the Concentrating Solar Power market share. Also, the Concentrating Solar Power Systems require a flat land or land with a very low slope, the inclination of 1%- 3% is suited for the installation of Concentrating Solar Power Systems. However, the lands with a 3% inclination will increase the cost of the plant. Finding suitable, non-agricultural lands is considered a key challenge by the market players.
Concentrating Solar Power Plants require substantial amounts of water for cooling and cleaning purposes. The majority of the Concentrating Solar Power Plants are installed in the arid and semi-arid regions for direct sunlight and suitable land. However, these lands face a huge water scarcity crisis.
Concentrating Solar Power Market - Cumulative growth analysis:
Concentrating Solar Power Market is projected to grow at a CAGR of 17.1% during forecast period 2022-2030, expecting the valuation of USD 16.41 Billion. Industry is expected to grow due to growing environmental concerns over carbon emissions. The growing concern regarding the carbon footprint from the industrial and commercial sectors and the rising demand for power from the countries that are struggling without access to electricity has propelled the Concentrating Solar Power Market growth. Owing to the increasing advent of novel technologies concerning heat transfer fluids, materials, technologies, the Concentrating Solar Power market share is expected to witness steady growth in the forecast period.
Electrical energy is seen as one of the most essential requirements in human life. Growing industrial and commercial activities, population, and shift in lifestyles have increased the electricity demand and are expected to grow for the years to come. The Concentrating Solar Power systems are considered the most promising in generating electricity, as the previous solar systems are fairly inefficient and costly. The utilization of mirrors to concentrate the solar power and the dispatching capacity are the primary reasons for their efficiency.
Concentrating Solar Power Market - Value chain analysis:
The solar power tower segment is heightened in recent years as they consume lesser water compared to other types. Water is the major constraint for the growth of the Concentrating Solar Power Market Growth. The higher storage capacity and lower operational costs make it lead the market segment.
According to EIA, thermal energy surpasses biomass to become the third most prevalent renewable electricity source. As the electricity demand continues to grow, the Concentrating Solar Power Market is expected to grow at a faster pace. This factor has propelled the countries like India, China, the US, Italy, and others globally to install solar panels to generate electricity and has bolstered the Concentrating Solar Power Market growth. The attractive features of the thermo-fluids and the thermal energy storage tanks have enabled the Concentrating Solar Power Systems to store the thermal energy easier than storing electricity. China has reported that it has operated about 12 Concentrating Solar Power plants by the end of the year 2020. Such reports have propelled other countries also to invest in their solar-based projects.
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A study conducted by Greenpeace international states that the Concentrating Solar Power Systems could account for about 25% of the world’s energy needs by end of the year 2050. The investment for these systems is also expected to reach between 2 billion euros to 92.5 billion euros. China is considered as the leading country in the market concerning the increasing investment in the Concentrating Solar Power industry as the country is already focusing on generating continuous renewable electricity to support their industrial and economic activities.
Due to the increasing population and shift in lifestyle, the Asia-pacific region is expected to invest more in Concentrating Solar Power systems and solar projects for the upcoming years. Increased foreign investments, growing industries' universal shift in the production line have created a huge impact on the market.
The growing demand for cost-effective, energy-generating solutions tends to increase the number of market players in the forecast period.
Solar Cured coating:
In December 2019, a California-based company has developed a solar-cured coating that provides higher efficiency when utilized in tower CSP. The coating offers a longer lifetime and higher absorption of sunlight which in turn helps in reducing the O&M costs.
Salt at high temperatures:
The major restraint of using molten salts is their corrosive nature when it is heated. To counteract the issue, researchers have developed a salt mixture that reduces the corrosion to a significant amount while reaching a temperature over 800°C.
To continue the utilization of the molten salts in the Concentrating Solar Power Systems, a laboratory in the USA had attempted to develop CSP systems by using Magnesium and Zirconium which keeps the molten salts in the play.
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|CAGR||17.1%% CAGR (2022-2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Technology, Components, End User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Abengoa Solar, SA (Spain), Acciona Energy (Spain), GE Renewable Energy (France), TSK Flagsol Engineering GmbH (Germany), Enel Green Power (Italy), BrightSource Energy (US), Atlantica Yield PLC (UK), eSolar Inc. (US), SolarReserve (US), ACWA Power (Saudi Arabia), Chiyoda Corporation (Japan), Alsolen (Morocco), and Soligua (Italy)|
|Key Market Opportunities||New product launches and R&D Amongst major key Players|
|Key Market Drivers||
Solar Power Market is expected to witness CAGR of 17.1% during forecast period.
Abengoa Solar SA, Acciona Energy, GE Renewable Energy, TSK Flagsol Engineering GmbH, Enel Green Power, BrightSource Energy, Atlantica Yield PLC, eSolar Inc., SolarReserve, ACWA Power and others are key players in the industry.
The excessive usage of water and requirement of land and usage of hazardous materials are considered as major environmental effects caused due to the installation of CSP.
The technology used, operating temperature, thermal losses are the major factors that affect the efficiency of the Concentrating Solar Power Systems.