Concentrated solar power (CSP) is a technology that generates solar power by using mirrors or lenses to concentrate a large area of sunlight onto a small area. CSP systems track the sun throughout the day and can store thermal energy for later electricity generation, even when the sun is not shining. With continuously rising prices of fossil fuels and growing concerns over environmental issues, concentrated solar power has emerged as a viable renewable and sustainable alternative to generate carbon-free electricity. The global concentrated solar power market is estimated to be valued at US$ 5.86 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

Concentrated solar power provides a huge market opportunity due to growing adoption of sustainable energy technologies. Many countries are extensively investing in renewable energy to reduce dependence on fossil fuels and meet international obligations for reducing carbon emissions. Governments across the globe are offering favorable policies and incentives such as tax credits, renewable portfolio standards, feed-in tariffs etc. to encourage the uptake of clean energy sources like concentrated solar power. Rapid capacity additions are expected in concentrated solar power market owing to a growing push for indigenous renewable energy generation. Emerging technologies in thermal energy storage also provide improved flexibility and reliability of CSP plants to better integrate solar power into electricity grids. Rising investments in clean energy coupled with continuous technology advancements will further drive the adoption of concentrated solar power systems globally in the coming years.

Porter's Analysis

Threat of new entrants: The concentrated solar power market requires high initial investments which acts as a barrier for new companies. Regulations related to renewable energy also affects market entry.

Bargaining power of buyers: As the demand for clean energy increases, buyers have greater bargaining power to negotiate on price and delivery terms.

Bargaining power of suppliers: Major equipment suppliers like mirrors, solar receivers, and thermal storage systems enjoy bargaining power due to their technological expertise and scale of operations.

Threat of new substitutes: Alternate renewable sources of energy like solar PV and wind power have emerged as substitutes but concentrated solar power offers grid scale energy storage capabilities.

Competitive rivalry: Presence of global fleet and regional players has intensified competition in technology innovation, cost reduction, and market penetration.

SWOT Analysis

Strengths: Ability to provide grid stability services; Reduced water consumption compared to thermoelectric plants; Flexibility to incorporate thermal energy storage.

Weaknesses: High initial capital costs; Geographical and resource constraints for setting up plants; Challenges in operation and maintenance of complex systems.

Opportunities: Increasing focus on renewable capacity addition; Favorable government incentives and policies; Potential for hybridization with solar PV and thermal applications.

Threats: Fluctuating costs of equipment; Delays and cost overruns in projects; Intermittency risks without sufficient thermal storage facilities.

Key Takeaways

The Global Concentrated Solar Power Market Size is expected to witness high growth during the forecast period owing to supportive policies and climate change initiatives across regions. The market size is projected to surpass US$ 15 Bn by 2030, growing at a CAGR of around 10%.

Regional analysis: Europe dominates currently with largest operational capacities mainly in Spain, Italy and France. China has emerged as a high growth market and is focusing more on parabolic trough and solar tower technologies. The Middle East & Africa region is also gaining prominence with countries like UAE and South Africa announcing multi-gigawatt concentrated solar power projects in the coming decade.

Key players: Key players operating in the concentrated solar power market are Siemens AG, Genarl Electric, Abengoa, Acciona S.A., Atlantica Yield plc., Suntrace GmbH, BrightSource Energy, Inc., SolarReserve, LLC., ACWA Power, Frenell GmbH. Majority of megawatt scale projects involve strategic partnerships between developers, EPC contractors, and equity investors. Innovation is focused on reducing LCOE through modular designs, thermal storage solutions, and hybrid applications.

Get More Insights

https://www.newswirestats.com/concentrated-solar-power-market-size-share-growth-outlook-2023/