Africa Thermal Energy Storage Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | > 10.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Africa Thermal Energy Storage Market Analysis
Africa thermal energy storage market is projected to register a CAGR of over 10% during the forecast period.
The market is negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.
- Over the medium term, factors, such as growing impetus for renewable energy generation in Africa (like concentrated solar power, increasing demand for thermal energy storage systems in heating, ventilation, and air conditioning (HVAC) application), government incentives for thermal energy storage systems, and advancements in material sciences, are some of the major factors driving the demand for the market studied in the region.
- On the other hand, the declining battery costs leading to an increase in installations of battery storage and high costs of developing and installing thermal energy storage systems associated with thermal energy storage are expected to hinder the growth of the market in Africa.
- Nevertheless, Algeria's energy requirements are heavily dependent on natural gas, which amounts to about 93% of power generation in the country. However, the country has enormous solar energy potential and is planning to release several tenders for renewable capacity creating ample opportunity for the market players.
- South Africa is expected to be the largest market for thermal energy storage in the Africa region, due to large deployments of CSP with thermal energy storage, along with increasing demand for backup power for commercial and industrial applications.
Africa Thermal Energy Storage Market Trends
This section covers the major market trends shaping the Africa Thermal Energy Storage Market according to our research experts:
Power Generation Sector to Dominate the Market
- Excess energy generation available during low demand time can be used to charge a thermal energy storage system to increase effective generation capacity during high-demand periods. This results in a higher load factor for the plants, helping them to generate energy stably.
- In many African countries, energy storage technology aids the grid operators in managing variable energy generation from renewable, like solar and wind energy. Utilities use energy storage technologies in various applications, such as time shifts and supply capacity, to meet the demand-supply gap efficiently, hence, driving the thermal energy storage market.
- Concentrated Solar Power (CSP) plants dominate African energy storage deployment, which is the cheapest way to store solar energy over long hours. In 2021, CSP installation in Africa totalled 1,085 MW, an increase of over 230% from 2015. Therefore, it is a stabilizing factor for the energy-supply system and is expected to drive the market during the forecast period.
- In February 2022, Botswana's Ministry of Mineral Resources, Green Technology, and Energy Security (MMGE) invited bids from national and international independent power producers (IPPs) to design, construct, own, operate, and maintain a 200 MW concentrated solar power (CSP) project (2*100 MW) in the country. A total of two 100 MW units will be constructed in the villages of Letlhakane and Maun in Botswana. The project is expected to be operational by 2026/2027, based on a Power Purchase Agreement (PPA) with the Botswana Power Corporation for 30 years.
- Therefore, Africa holds great potential for growth in the future, as the region has many concentrating solar power (CSP) projects, which include thermal energy storage, installed in countries, like South Africa and Morocco, in turn, increases the demand for thermal energy storage system during the forecast period.
South Africa to Dominate the Market
- South Africa's grid is challenged by increasing demand due to a growing economy. Therefore, the country is shifting toward CSP with energy storage. Moreover, the integration of renewable generation is likely to drive the African thermal energy storage market.
- Under South Africa's Renewable Energy Independent Power Producer Procurement Program, the government included bidding rounds for CSP plants with energy storage. These initiatives are, therefore, expected to supplement the increasing demand for thermal energy storage technologies during the forecast period. In 2021, CSP installation in South Africa totaled 500 MW, an increase of over 400% from 2015.
- In February 2022, A South African concentrated solar power (CSP) project named Redstone completed its first debt drawdown on the largest renewable energy investment in South Africa. The African Development Bank served as the mandated lead arranger (MLA) for the total investment amounting to USD 0.67 billion and coordinated the project with a commitment of USD 0.13 billion. The commercial operation is scheduled to begin in the fourth quarter of 2023
- In November 2021, Wee Bee Ltd., a South African farming company, placed an order with Azelio for eight units providing 1.3 MWh of clean electricity supply for its long-duration energy storage, TES.POD. As a thermal energy storage system, the TES.POD uses recycled aluminum storage media. Although the system has a lifespan of 30 years, recycled aluminum storage media can be reused many times without degradation of capacity over time, resulting in a truly sustainable and reliable solution.
- As several thermal energy storage technologies exist, South Africa plans to incorporate it to add grid flexibility at a low cost and meet the increasing electricity demand, in turn promulgating the thermal energy storage market in the region.
Africa Thermal Energy Storage Industry Overview
The African thermal energy storage market is moderately consolidated. Some of the major companies (in no particular order) include Eskom Holdings SOC Ltd, Abengoa SA, ACWA Power International, SENER Group, and Engie SA, among others.
Africa Thermal Energy Storage Market Leaders
Eskom Holdings SOC Ltd
Abengoa SA
ACWA Power International
SENER Group
Engie SA
*Disclaimer: Major Players sorted in no particular order
Africa Thermal Energy Storage Market News
- In December 2021, Namibia Power Corporation Ltd (NamPower), the national electric power utility of the country, announced a tender for a project combining concentrated solar power (CSP) with energy storage of 50MW-130MW. It is anticipated that the proposed project will cost between USD 600 million and USD 1 billion.
- In November 2021, ENGIE has completed the acquisition of Abengoa's indirect stake in Xina Solar One (Pty) Ltd. After completion of the transaction, ENGIE will own 40% of the Xina Solar One 100 MW Concentrated Solar Power (CSP) plant and 46% of the Xina Operations & Maintenance Company (Pty) Ltd company.
Africa Thermal Energy Storage Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Application
5.1.1 Power Generation
5.1.2 Heating and Cooling
5.2 By Storage Type
5.2.1 Molten Salt
5.2.2 Heat
5.2.3 Ice
5.2.4 Other Storage Types
5.3 By Geography
5.3.1 South Africa
5.3.2 Morocco
5.3.3 Rest of Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Abengoa SA
6.3.2 ACWA Power International
6.3.3 Azelio AB
6.3.4 BrightSource Energy Inc.
6.3.5 Engie SA
6.3.6 Eskom Holdings SOC Ltd
6.3.7 SENER Group
6.3.8 SolarReserve LLC
6.3.9 Calmac
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Africa Thermal Energy Storage Industry Segmentation
Thermal energy storage is a technology that enables the transfer and storage of heat energy or energy from ice or water or cold air. This method is integrated into new technologies that complement solar and hydroelectric power sources. The thermal energy storage applications can be applied in the following fields in concentrated solar power plants to supply dispatchable power even during the night, In thermal power plants to operate more and rapid load changes, To provide heat supply security in combined heat and power plants and to separate the heat and power generation temporarily, To recover and utilize heat lost in process industries.
Africa thermal energy storage market is segmented by application, storage type, and geography. By application, the market is segmented into power generation and heating and cooling. By storage type, the market is segmented into molten salt, heat, ice, and other storage types. The report also covers the market size and forecasts for the thermal energy storage market across major countries in the region. For each segment, the market sizing and forecasts have been done based on revenue (USD Billion).
| By Application | |
| Power Generation | |
| Heating and Cooling |
| By Storage Type | |
| Molten Salt | |
| Heat | |
| Ice | |
| Other Storage Types |
| By Geography | |
| South Africa | |
| Morocco | |
| Rest of Africa |
Africa Thermal Energy Storage Market Research FAQs
What is the current Africa Thermal Energy Storage Market size?
The Africa Thermal Energy Storage Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)
Who are the key players in Africa Thermal Energy Storage Market?
Eskom Holdings SOC Ltd, Abengoa SA, ACWA Power International, SENER Group and Engie SA are the major companies operating in the Africa Thermal Energy Storage Market.
What years does this Africa Thermal Energy Storage Market cover?
The report covers the Africa Thermal Energy Storage Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Africa Thermal Energy Storage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Thermal Energy Storage in Africa Industry Report
Statistics for the 2024 Thermal Energy Storage in Africa market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Thermal Energy Storage in Africa analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
