How Can Concentrated Solar Power Technology Help Solar Power Companies Maximize Their Profits in the Coming Period?

Key takeaways

• Introduction
• Advantages of concentrated solar power technology
• Latest product launches in the domain

The emphasis on renewable energy has been increasing for the past few decades due to the rising awareness regarding the need to curb carbon emissions. As a result, solar power has increased exponentially, and new technologies are being developed to address the ever-growing energy demands. One of the latest developments in the solar power domain is concentrated solar power technology.

Analyzing the reasons behind the rising use of concentrated solar power technology

As the name suggests, concentrated solar power refers to the use of sunlight for electricity generation by concentrating it on a small area. For this, concentrated solar power (CSP) systems use mirrors, glasses, or lenses which help direct the sun's rays onto a compact space. CSP technology is different from conventional solar power technology in the way electricity is generated. Conventional solar energy generation involves solar panels and photovoltaic cells; thus, in the conventional method, solar energy is converted into electricity directly.

On the other hand, CSP technology harnesses sunlight to generate steam, which is further used to drive the turbine. This turbine is further connected to a generator which ultimately produces electricity. Due to the electricity generation methodology adopted by this technology, it is also called solar thermal energy. Different types of CSP systems have been developed in the past few years such as parabolic trough systems, linear Fresnel systems, central tower systems, parabolic dish-Stirling systems, etc. Of these types, the dish-stirling and Fresnel reflector systems are widely used for power generation; the dish-Stirling segment of the concentrated solar power industry is expected to have one of the highest CAGR of 17.1% in the 2023-2032 period.

The primary reason behind the rising use of CSP technology is the fact that it offers a more consistent supply of energy as compared to conventional solar energy using photovoltaic cells. CSP technology uses fluids like molten salts that can store solar energy; the stored energy can then be used for future use. Unlike conventional photovoltaic cells which provide intermittent supply, CSP technology thus ensures a continuous supply of electricity even during inclement weather conditions. This technology is thus beneficial for people living in sub-tropical and polar regions where sunlight isn’t regular.

Another important advantage of concentrated solar power technology is that these systems can easily be integrated with existing power generation setups. Thus, energy generation units that are running on conventional fossil fuels like coal or gas can also set up CSP systems to augment the power generation volume. The cost of electricity generation using CSP systems is also quite low as compared to nuclear power plants. Moreover, these systems can be set up in areas where other power generation plants cannot be set up due to lack of space. Thus, CSP systems offer the perfect solution for energy generation in hilly terrains and forested areas.

Exploring the role of the solar power companies in driving the shift to CSP technology

A unique feature of the concentrated solar power sector is that it has received a boost from governments and private solar power companies. For instance, governments in various countries in the Asia-Pacific region have rolled out schemes that promote the use of solar power technologies for electricity generation. Some governments have also announced favorable regulatory regimes such as tax benefits and feed-in tariffs to increase the adoption of solar power. As a result of these governmental efforts, the CSP industry in India is predicted to rise at a CAGR of 19.6% in the 2023-2032 period.

At the same time, private companies like Rioglass Solar Inc., Atlantica Sustainable Infrastructure plc., ACWA Power, etc., have invested heavily in R&D activities for developing advanced CSP systems. Some companies have entered into partnerships with government agencies and other private entities to design state-of-the-art concentrated solar power units. For example, in October 2023, Heliogen, a major renewable energy technology firm, announced a partnership with Woodside Energy, an Australian energy generation company, along with the U.S. Department of Energy. Recently, Heliogen launched the world’s first fully integrated commercial CSP unit in California. Called the Capella Project, this initiative marks an important step toward the adoption of concentrated solar power and reduction in dependence on fossil fuels.

Similarly, in December 2023, UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum announced the launch of the world’s largest concentrated solar power project. With a capacity of around 950 MW, the solar power project is predicted to provide clean and green energy to more than 3 lakh residences in the country. Initial studies have shown that in the cumulative sense, the project is expected to cut down around 1.6 million tons of carbon emissions.

To sum it up, the rising demand for renewable energy sources is predicted to enhance the market share of the concentrated solar power sector. Furthermore, the advantages offered by CSP technology over conventional solar photovoltaic technology are also expected to help the sector flourish. 

For tips and suggestions on how businesses must capitalize on the opportunities offered by the industry, feel free to contact us.

Related Post