Concentrated Solar Power Industry – A Move Towards Promising Future

Concentrated Solar Power (CSP) technology is one of the most promising ways to produce renewable energy. It has the potential to provide a significant amount of power to communities without relying on non-renewable resources. In this blog post, we will explore the Concentrated Solar Power market, including its current state, trends, and prospects.

The concentrated solar power (CSP) market has been growing steadily over the past few years, driven by the increasing demand for renewable energy sources. According to a report by the International Renewable Energy Agency (IRENA), the global CSP installed capacity reached 7.5 GW by the end of 2020. This growth is expected to continue, with CSP capacity projected to reach 33 GW by 2030.

The leading regions for CSP installations are North America, followed by Europe and the Middle East and Africa. The United States is the world's largest CSP market, with 3.9 GW of installed capacity, followed by Spain with 2.3 GW. Rising government regulations along with favorable initiatives is expected to propel the growth of the industry.

The global concentrated solar power market accounted for $ 41.73 billion in 2021 and it is expected to increase at US$ 133.43 billion by 2030 with a CAGR of 13.8% from 2022 to 2030.

Trends in the Concentrated Solar Power Market

The CSP market has been evolving to become more efficient, cost-effective, and versatile. Some of the trends driving this evolution include:

Energy Storage:
CSP plants are increasingly being coupled with energy storage technologies such as molten salt and thermal storage. This allows them to provide power on demand, even when the sun is not shining.

Hybridization: CSP plants are being combined with other renewable energy sources, such as photovoltaic (PV) solar, wind, and geothermal power. This hybridization helps to overcome the intermittency of renewable energy sources, making them more reliable and efficient.

Improved Technologies: Initially the cost associated with CSP technology was much more than other renewable sources such as wind. However, the latest CSP technologies, such as tower and parabolic trough systems, are more efficient and cost-effective than earlier generations. These technologies also require less land and water, making them more environmentally sustainable.

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Future Prospects for the CSP Market

The CSP market is expected to continue growing in the coming years, driven by several factors:

Increasing Demand for Renewable Energy:
The global push to reduce greenhouse gas emissions and mitigate climate change is driving the demand for renewable energy sources, including CSP. Moreover, the government is putting emphasis on the development of renewable energy and providing various initiatives. For example, the European Union has set a target of generating 20% of its energy from renewable sources by 2020, and CSP is expected to play a significant role in meeting that target.
Falling Costs: During the initial years of development of the energy, the cost was quite higher as compared to other renewable energy. The cost of CSP technology has been falling steadily, making it more competitive with other renewable energy sources and even some fossil fuels.

Technological Advancements: Ongoing research and development efforts are expected to result in even more efficient and cost-effective CSP technologies. However, recent advancements in materials and design have made CSP more cost-effective. The use of molten salt as a heat transfer fluid, for example, has improved the efficiency and reliability of CSP systems while reducing their cost.

Government Support: Governments around the world are providing financial incentives and regulatory support to encourage the development of CSP projects. Many governments offer incentives and subsidies for renewable energy projects, which has helped to drive growth in the CSP market. For example, the European Union has set a target of generating 20% of its energy from renewable sources by 2020, and CSP is expected to play a significant role in meeting that target.

Utility segment accounted the largest share

The market is divided into utility, EOR, desalination, and other segments depending on the application. With 63.9% of total sales in 2019, the utilities application segment had the highest revenue share. Significant concentrated solar power project developments, particularly in Saudi Arabia, Morocco, the United Arab Emirates, and China, are driving the segment's growth in the Middle East, Africa, and Asia Pacific. Moreover, the requirement to produce renewable power with storage technologies to meet the rising demand for electricity in the residential regions is also proliferating the utility areas' desire for CSP.

The favorable government initiatives and laws on promoting the adoption of renewable energy sources are the key reasons why it is projected that the utilities segment will experience significant growth over the projection period. The segment growth will be boosted through 2027 by a number of financial and economic perks, such as Feed-in Tariffs (FiT) and tax credits, offered by the government authorities.

By 2027, it is expected that the Enhanced Oil Recovery (EOR) application segment, which is quickly expanding, would have more than 123.0 MW of capacity. In this application, oil fields are heated with steam generated by concentrated solar power plants for tertiary recovery. The implementation of this technology in countries that produce crude oil would promote the expansion of the CSP market. Due to continuous R&D in the market, the other sector, which had a 2019 market value of USD 904.6 million, is anticipated to experience significant increase over the projected period.

Molten Salt segment will likely dominate the market

Among other segments, molten salt is expected to account the largest share during the upcoming years as they can function at temperatures above 500°C, molten sodium and potassium salts are employed in CSP plants as heat transfer fluid. By roughly 40%, they increase power efficiency and lower the levelized cost of electricity (LCOE). Due to their relatively low freezing point of roughly 250°C, a significant amount of auxiliary power is needed to keep them molten during periods of shut-off.

75% of the thermal energy storage produced for power purposes globally uses molten salt technology. These programs also help CSP projects and provide electricity outside of the hours of greatest solar radiation.

Due to falling CSP costs and the growing preference for renewable energy sources as a means of reducing emissions, several projects utilising this technology type are now in progress.

Asia Pacific dominated the market growth

On the basis of region, the market is segmented into Middle East, Asia Pacific, North America, Latin America, Africa and Europe. The Asia Pacific acquired the largest share in the overall market. The growth of the market is attributed to the increasing installation of concentrated solar power plants. Surging investment in concentrated solar power is also expected to grow the market demand during the upcoming years. Moreover, Europe is also expected to grow significantly at a CAGR of 16.4% on account of favorable government policies across various nations. It is predicted that Europe will dominate the market growth. The capacity of concentrated solar power is likely to expand by 4 GW by 2030. Spain is the second largest market after United States.

North America, with a market value of USD 910.4 million, was the second-largest regional market in 2019. In MEA, where Morocco is among the top users of concentrated solar power in the world, ongoing large investments in development, together with the shifting focus of investors towards green energy alternatives, will favor the market expansion.


The Concentrated Solar Power market is growing rapidly and evolving to become more efficient, cost-effective, and versatile. With increasing demand for renewable energy sources, falling costs, and ongoing technological advancements, the prospects for CSP look bright. If you're looking for a sustainable, reliable, and environmentally friendly source of power, CSP may be just what you need.

Market Share Insight

Due to the high number of both big and minor market players, the market is only marginally concentrated. In order to establish strategies that would assist growing their market share, makers of concentrated solar power closely monitor trends in the renewable energy sector. To boost the acceptance rate of these items and develop innovative technologies and designs, several players are investing a sizable amount of money. The following are a few of the leading companies in the market for concentrated solar power:

- Abengoa

- BrightSource Energy, Inc.

- Siemens Energy

- Acciona

- Aalborg CSP

- TSK Fl


- INITEC Energía

- Torresol Energy

- Enel Spa

- Trivelli Energia srl

- Grün leben GmbH

Latest Developments

The Solar Futures Study, a study that examines the role of solar energy in attaining these objectives as part of a decarbonized U.S. electric system, was published in September 2021 by DOE.

With DOE funding, Sandia National Laboratories (SNL) released a publicly available digital CSP archive in October 2021. In addition to reports, memos, designs, pictures, and other historical CSP research documents, SNL solar researchers and librarians have collected, digitalized, and catalogued a wide range of related materials. By avoiding the need for new researchers and businesses to reinvent the wheel, sharing this information can help make the technology more available and the road to commercialization faster.

Namibia Power Company, the country's main provider of electricity, planned to announce a tender for a 50 MW-130 MW concentrated solar project with a storage scheme in December 2021. The project is anticipated to cost between $500 million and $1 billion, with a 2025 planned completion date.

An environmental permit was obtained by Cerro Dominador in October 2021 for the construction of a 690 Megawatt CSP mega-complex in Chile. Most likely, the facility will be situated near the Chilean Antofagasta towns of Calama and Sierra Gorda.

Greece announced a three-year incentive package worth EUR 2.27 billion to encourage the deployment of extra renewable energy producing capacity, and the European Commission approved it in November 2021. The government of the country is planning to reach 4.2 GW of renewable generation capacity by the end of the programe, which is scheduled to last until 2025. The scheme makes use of solar PV, wind, biomass, landfill, and concentrated solar power technology.

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