Top 3 trends augmenting concentrated solar power market share by 2027
There is a huge demand for energy as well as medium and large-scale investments towards the usage of solar generation farms. Effective energy usage has drifted consumer tendencies and regulatory policies towards the deployment of solar technologies.
The concentrated solar power (CSP) market is estimated to record steady growth by 2027 owing to growing renewable integration across the decentralized grid network coupled with government reforms and policies to improve sustainable energy mix. Changing trends in project sites towards developing regions and the integration of thermal energy storage technology is anticipated to favor industry outlook. While private investments and FDI's throughout Middle East and Asia Pacific for the deployment of new CSP plants could further market size.
Driven by rising adoption, companies in the concentrated solar power market are starting new projects and developing innovative products. For example, in 2021, plans for a new 50MW hybrid Concentrated Solar Power (CSP) project in Mount Isa got financial backing from the government of Queensland owned energy firm Stanwell Energy. Based on such advancements, Global Market Insights, Inc., estimates that the concentrated solar power market may rise substantially by 2027.
Elaborated below are some of the key trends driving concentrated solar power market expansion:
1) Adoption of parabolic troughs CSP
The utilization of parabolic troughs concentrated solar power is expected to rise credited to more investors and utility inclination towards the technology. There are ongoing advancements towards thermal storage options and the development of new solar receivers to improve the collector field thermal performance. Current R&D activities by key market players to deploy a higher absorption rate storage technology and a longer receiver life span could boost the technology usage.
2) Surging demand for <= 50 MW CSP
There is a high energy demand across commercial establishments that is parallel to capacity of <= 50 MW CSP units. These CSPs are applicable in small scale, industrial process heat systems for the reduction of fossil fuel consumption. Growing number of solar thermal power plants worldwide that have space constraint areas, stringent environmental regulations and robust efforts towards carbon reduction are probable growth factors for the <= 50 MW CSP market.
3) Utilization of CSP technology without storage
CSP technology without storage is likely to witness significant demand owing to its decreased complexity and lower installation costs. There is a gravitating shift towards the installation of without storage CSP plants given to its high-power reliability and better capacity utilization. Less operational and maintenance cost, as well as minimal capital expenditure could have a positive impact on the industry.