Middle East and Africa concentrated solar power market will witness growth on account of extensive investments to suffice the stagnation in the Spain solar industry and reluctance in the North America concentrated solar power (CSP) industry, according to a new report by Global Market Insights. Established players are focusing more toward the development of new alliances with the regional players to expand their market penetration. Countries including China, South Africa, the UAE, Saudi Arabia and Morocco continue to encourage the local content requirement across the regional CSP programs.
The global CSP Market is expected to cross $4 billion by 2025, the report states. The CSP market is set to witness growth on account of growing adoption of renewable energy driven by favorable government initiatives. For instance, in 2017 National Development & Reform Commission (NDRC) of China has drafted a policy to increase the 2030 renewable energy target from 20% to 35%. Furthermore, stringent carbon emission standards, along with growing effects of global warming will drive the technological deployment.
Growing electricity demand along with increasing investments toward the enhancement of efficiency index will positively influence the concentrated solar power market growth. As per the Australian Energy Council, global electricity demand will surpass 40,000 TWh by 2030, witnessing a growth of more than 30% from 2017 level. Additionally, the growing need for decentralized electricity production at remote locations will further fuel the product demand.
The report notes that reduction in Levelized Cost Of Electricity (LCOE) driven primarily by reverse auction of projects and reduced O&M costs will stimulate the market growth across the forecast timeframe. According to IRENA, the LCOE of CSP projects are anticipated to fall in range of USD 0.06 to 0.10 per kWh by 2020. However, high capital cost as compared to solar photovoltaic project of comparable capacity have been diverting the investors toward a cheaper alternative.
The study says that the growing adoption of high efficiency systems, along with favorable government policies, will boost the power tower CSP market size. The technology will further witness growth on account of its higher working temperature, lower thermal losses and less energy transfer steps as compared to other available alternatives. In addition, shifting trends toward thermal energy storage systems, coupled with its better compatibility with power tower systems will boost the technology deployment.
The report states that notable industry participants across the concentrated solar power market include:
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