The global CSP capacity is estimated to increase significantly from 5.6 GW in 2018 to 22.4 GW in 2030 following significant capacity additions by China, Chile and countries in Middle East North Africa (MENA) region according to GlobalData.
The company’s latest report ‘Concentrated Solar Power (CSP) Market, Update 2019 – Global Market Size, Market Segmentation, Competitive Landscape and Key Country Analysis to 2030’ reveals that the prospects of the global CSP market are bright with improved efficiencies, energy storage, cost reduction through competitive bidding and the development of PV-CSP hybrid systems.
Chile will be another major country, which will have significant CSP capacity additions during the outlook period. The CSP market in Chile is mainly driven by its goal to achieve 20% renewable of the national energy mix by 2025. In order to achieve its goal, the country held a series of technology neutral auctions through which the average tariff plummeted from 129 $/MWh in 2013 to 32.5 $/MWh in 2017.
In MENA region, countries such as Morocco, South Africa, Saudi Arabia, the UAE and Israel will play a major role for CSP development during 2019-2030. Morocco had set a plan to source 2 GW from solar power by 2020. The country plans to set up and implement sustainable CSP plants to cover 42% of Morocco’s power needs by 2020 and bridge the demand supply gap during peak evening hours through thermal storage.
On the other hand, the UAE is promoting solar through auction mechanism. In July 2017, Dubai Electricity and Water Authority (DEWA) received four bids for the fourth phase of the 200 MW Mohammed bin Rashid Al Maktoum solar project. The bids reached a record low, with the lowest offer of $94.5/MWh while the other three bids offered 105.80 -173.50 $/MWh.
The global CSP market is on a revival mode with reducing cost of generation through auction mechanism and hybrid PV-CSP. CSP with thermal storage will gain prominence due to increasing demand for reliable and stable power.