Substantial advancements in the energy technologies over the past few years have added a remarkable value to the global concentrated solar power market and has impacted massively on its growth projection. The strength of these solar power panels lies in its ability to store thermal energy which gives it a competitive edge over other energy sources. CSP plants actually use mirrors to focus the sunlight for generating power, which in turn produce high-temperature thermal energy that can be stored inexpensively. Thus, CSP with thermal storage stands as an all-time available electricity source even when there is no sunlight. Cost effectivity and favorable government-backed incentives such as renewable energy certificates, carbon credits will further augment the market demand in the years ahead. Global Market Insights Inc., estimates concentrated solar power market to exceed a capacity of 24 GW by the end of 2025.”
Considering the flexibility and reliability, concentrated solar power plants enables better grid penetration which makes it attractive to numerous end-use sectors including automotive, pharmaceutical, refineries, metal processing etc. Technically, concentrated solar power industry is segmented into parabolic troughs, power tower, dish, and linear fresnel. Parabolic troughs dominated the overall industry share in 2015, by accounting for more than 70% of the total volume. Low cost in comparison to other thermal technologies is driving the market demand for this product.
Power tower based concentrated solar power market is also witnessing a promising business roadmap owing to its upgraded heat storage capacity, low cost, and high efficiency. As per estimation, this market is forecast to grow strikingly at an annual rate of 23% over the coming eight years.
Geographically, U.S. is one of the leading players of global concentrated solar power industry. It held a share of USD 12 billion in 2015 and is anticipated to witness a lucrative growth curve with a projected CAGR of 8% over the period of 2016-2025. Federal government support which includes financial assistance, tax rebate, net metering etc. will further augment the market outlook.
APAC concentrated solar power industrywill also witness substantial growth over the years ahead with India and China as the major revenue pockets. Growing inclination toward renewable energy sources to address the surging electricity demand is positively influencing the regional market demand. China concentrated solar power market is projected to have a strong growth prospect in the years ahead. It is estimated to grow tremendously at an annual rate of over 20% over 2016-2025.
Some of the key players actively partaking in global concentrated solar power industry include Siemens, NextEra Energy Resources, TSK Flagsol, eSolar, Areva, and Solar Millennium.