Concentrated Solar Power (CSP) Market - Growth, Trends, and Forecast (2020 - 2025)

The market is segmented by Technology (Parabolic Trough, Linear Fresnel, Power Tower, and Dish/Stirling), Heat Transfer Fluid (Molten Salt, Water-Based, Oil-Based, and Other Heat Transfer Fluids) and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa)

Market Snapshot

Study Period:

2018-2025

Base Year:

2019

Fastest Growing Market:

North America

Largest Market:

Europe

CAGR:

Greater Than 4 %

Major Players:

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Market Overview

The global concentrated solar power (CSP) market is expected to grow at a CAGR of more than 4% during the forecast period. As of 2018, the global installed capacity of concentrated solar power market was approximately 5.46 GW. Factors such as declining cost of CSP components, is likely to drive the concentrated solar power market during the forecast period. However, rapid decline in installation costs of solar photovoltaic (PV) plants, coupled with increased capacity factors, has improved the economic competitiveness of solar photovoltaic (PV) projects, worldwide. This makes CSP less lucrative, when compared to solar PV, due to several drawbacks, including high CAPEX, OPEX, and its limitation to utility scale. This is expected to hinder the market for CSP during the forecast period.

  • The molten salt technology accounts for 75% of the thermal energy storage developed for electricity applications worldwide. These applications also support CSP projects and dispatch electricity outside peak sunshine hours. This heat transfer fluid technology is expected to dominate the market in during the forecast period.
  • The Middle-East and Africa is expected to provide more opportunity for CSP market in the near future. This is due to the planned investment which is focused on mobilizing concessional financing and grants to help CSP scale up in the region.
  • Europe has dominated the concentrated solar power market, with the majority of the demand coming from Spain.

Scope pf the Market

The concentrated solar power market report include:

Technology
Parabolic Trough
Linear Fresnel
Power Tower
Dish/Stirling
Heat Transfer Fluid
Molten Salt
Water-based
Oil-based
Other Heat Transfer Fluids
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa

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Key Market Trends

Molten Salt to Dominate the Market

  • Molten salts of sodium and potassium are used as heat transfer fluid in CSP plants, due to their capability to operate at temperatures beyond 500ᵒC, improve power efficiency to about 40%, and reduce the levelised cost of electricity (LCOE). However, due to the high freezing point of about 250°C, a high amount of auxiliary power is required during shut-off periods, to keep them in molten state.
  • Molten salts also possess corrosive nature, and hence, expensive operational machineries and system engineering (in terms of piping, pumps, etc.) are required for efficient operation.
  • Molten salt technology accounts for 75% of the thermal energy storage developed for electricity application across the world. These applications also support CSP projects and dispatch electricity outside peak sunshine hours.
  • China is likely to be the biggest upcoming market for molten salt storage. The country is taking major interest in CSP development. It has joined forces with companies bidding in the Middle-East and is expected to install 1.3 GW of CSP across 21 projects in the country in the next few years. These projects are likely to give China the required expertise it needs to install a total of 5 GW of CSP capacity by 2020.
  • In 2018, the second phase of Shouhang Dunhuang’s 100 MW molten salt CSP tower project was commissioned. The second phase of the project owns the title of the world’s largest stand-alone solar field, with over 10,000 heliostat.
  • Hence, the molten salt heat transfer fluid is expected to drive the market for concentrated solar power during the forecast period.

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Europe to Dominate the Market

  • European countries received the maximum hours of sunshine. The region primarily had an essential role in the development of solar power. Substantial prices for grid-connected solar power were provided to encourage the industry. 
  • Europe’s installed CSP capacity is predicted to rise from 2.3 GW at the end of 2017 to 4 GW by 2030, based on current costs and market frameworks. 
  • In Europe, Spain has been leading in the CSP markets after the United States, driven by government support schemes and feed-in tariffs in Spain. 
  • The country has been the undisputed world’s largest market for concentrated solar power installation since 2010, as the whole of concentrated solar thermal power plants in the country accounted for 72.85% of total installed capacity in the world. 
  • Companies and research centers in Spain are taking the prime lead in the recent restoration of concentrating solar power (CSP), a type of solar thermal power. 
  • Hence, with the increasing installed capacity, the Europe is expected to dominate the CSP market during the studied period.

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Competitive Landscape

The concentrated solar power market is consolidated. Some of key players in this market include Abengoa SA, Acciona SA, ACWA Power, Brightsource Energy Inc., and Engie SA.

Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2025

    3. 4.3 Installed Capacity and Forecast in GW, till 2025

    4. 4.4 Recent Trends and Developments

    5. 4.5 Government Policies and Regulations

    6. 4.6 Market Dynamics

      1. 4.6.1 Drivers

      2. 4.6.2 Restraints

    7. 4.7 Supply Chain Analysis

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Bargaining Power of Suppliers

      2. 4.8.2 Bargaining Power of Consumers

      3. 4.8.3 Threat of New Entrants

      4. 4.8.4 Threat of Substitutes Products and Services

      5. 4.8.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Technology

      1. 5.1.1 Parabolic Trough

      2. 5.1.2 Linear Fresnel

      3. 5.1.3 Power Tower

      4. 5.1.4 Dish/Stirling

    2. 5.2 Heat Transfer Fluid

      1. 5.2.1 Molten Salt

      2. 5.2.2 Water-based

      3. 5.2.3 Oil-based

      4. 5.2.4 Other Heat Transfer Fluids

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 South America

      5. 5.3.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Abengoa SA

      2. 6.3.2 Acciona SA

      3. 6.3.3 ACWA Power

      4. 6.3.4 Brightsource Energy Inc.

      5. 6.3.5 Engie SA

      6. 6.3.6 SolarReserve LLC

      7. 6.3.7 eSolar Inc.

      8. 6.3.8 Torresol Energy

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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