Market Overview:
Concentrated solar power systems utilize mirrors or lenses to concentrate a large area of sunlight, or solar thermal energy, onto a small area. Solar energy is then converted to heat. These systems concentrate the sun's thermal energy to produce steam that drives a turbine and generator to produce electricity. Concentrating solar power (CSP) technologies provide an effective means of harnessing solar energy and improving efficiency by means of concentration to achieve higher operating temperatures than conventional photovoltaic (PV) panels. CSP technologies provide an effective base load power generation option, including the ability to be combined with thermal energy storage (TES). This enables the dispatch of solar power after sunset and on cloudy days. Unlike other renewable energy sources like solar PV and wind, CSP can be deployed at utility-scale and integrated into existing power generation infrastructure more easily.
Market key trends:
Growing demand for renewable energy sources, increasing grid stability concerns with rising share of variable renewable sources like solar PV and wind, and requirement for cost effective energy storage solutions to time-shift solar power generation are some key factors driving the growth of the concentrated solar power market. Concentrated solar power is advantageous in providing dispatchable solar energy through integration with thermal energy storage. This has made CSP a preferred renewable energy solution for utilities. Continued technology innovations and gradual decline in Levelized Cost of Electricity (LCOE) of CSP technologies compared to fossil fuel based power generation are anticipated to boost their adoption in the coming years. However, high initial capital cost remains a key challenge for widespread commercialization of CSP plants.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate. High initial capital investments and economies of scale pose challenge for new companies.
Bargaining power of buyers: The bargaining power of buyers is moderate to high. The presence of many established players provides buyers with better options and price negotiation power.
Bargaining power of suppliers: The bargaining power of suppliers is high due to technological complexity and lack of substitutes for key components like solar panels and storage systems.
Threat of new substitutes: The threat of substitutes is high with declining costs of other renewable sources like wind and solar PV. Advancements in battery storage also increases substitutes.
Competitive rivalry: Intense competition exists among existing players to gain higher market share.
Key Takeaways
The Global Concentrated Solar Power Market is expected to witness high growth, exhibiting CAGR of 10.8% over the forecast period, due to increasing focus on renewable sources of energy and favorable government policies supporting solar energy.
The Asia Pacific region dominates the global CSP market, with China accounting for the major share. Supportive government initiatives and investment in solar energy drives the market in the region. Europe is also a key market for CSP, with Spain, Italy and France emerging as major countries based on established solar capacities.
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. Players adopt strategies like partnerships, new product launches and regional expansion to gain competitive advantage.
Read More: https://www.ukwebwire.com/concentrated-solar-power-market-size/
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