Global concentrated solar capacity to triple to 22.4GW with China and Middle East backing: report

CSP in China grew after the announcement of 20 projects with a feed-in tariff of $0.172/kWh.

The global capacity for concentrated solar power is expected to triple from 5.6GW in 2018 to a whopping 22.4GW in 2030 due to significant new installations from China, Chile and countries in the Middle East, GlobalData revealed.

According to a report, 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.

Pavan Kumar Vyakaranam, power analyst at GlobalData, commented, “The CSP industry added around 601MW annual capacity in 2018 with projects being operational in countries such as Morocco, China, South Africa, Saudi Arabia and Kuwait.”

Moreover, China added around 200MW of CSP capacity in 2018 which is almost seven times its cumulative installed capacity at the end of 2017. China CSP market gained momentum after the announcement of 20 CSP projects as part of the first batch of demonstration projects, which will get a feed in tariff (FIT) of $0.172/kWh (RMB1.15/kWh).

Vyakaranam added that in Middle East Africa (MEA), 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 2GW 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,” he said.

Meanwhile, 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 whilst the other three bids offered $105.80 -$173.50/MWh.

Vyakaranam concluded, “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.”