ANALYSISCSP
Concentrated Growth
Concentrated Solar Power (CSP) sometimes gets overlooked as the battle of thin film versus silicon often hogs the limelight. CSP has other ideas than being left in the shadows as this outline from Globa Data demonstrates, continued growth is expected for the sector
C 22
SP is an upcoming renewable market which promises to provide cost-
effective power generation with improved efficiency. The global CSP market is highly concentrated, with the US and Spain dominating the market. Strong government support through financial incentives has driven market growth in these nations. The Southwest US has the most potential for CSP generation. Other areas with significant potential include the Middle East, Mediterranean countries, and areas in Eastern and Central Asia.
The global CSP market grew from 354.0MW in 2001 to 1,153.4MW in 2010, at a CAGR of 14.0% from 2001–2010. However, planned projects from 2011 onwards are expected to increase the CAGR to 50.9% from 2010–2020. The cumulative installed capacity of CSP is expected to grow from 1,153.4MW in 2010 to 70,833MW in 2020.
Aside from land and environmental constraints, high capital costs and grid infrastructure play an important role in deciding the future growth of the CSP market. A major challenge for the CSP market is grid connectivity. Grid connectivity requires the establishment of grid infrastructure to connect CSP facilities to power consumers. Most potential sites for CSP installations are located in desert areas where the establishment of grid infrastructure is difficult. For example, the proposed Sahara Desertec project in Sahara region is expected to provide energy to Europe and Mediterranean countries.
Many CSP projects are cancelled in the planning stages due to transmission constraints, or are downscaled or converted into solar PV technology which is more attractive to investors. In June 2010, construction of the Alpine SunTower, a 92MW solar thermal power plant that was under development
by eSolar, Inc. in California, is derailed due to transmission constraints. In addition, the Calico Solar Project, which was originally planned to be an 850MW CSP farm, was downsized to a 750MW solar PV plant and a 100MW CSP plant by K Road power who owns the project in January 2011. Therefore, utility companies play an important role for CSP producers, as they provide grid infrastructure and purchase electricity produced at a premium rate.
The US and Spain are Key Countries
The global CSP market is highly concentrated, with the US and Spain dominating the market. Strong government support through financial incentives has driven market growth in these nations. Spain is global leader for CSP technology through use of the country’s abundant sunlight resources. Spain entered the CSP market in 2007 with establishment of the PS10 solar tower, which has a capacity of 11MW. Until 2010, cumulative installed capacity in Spain reached 582.4MW and Spain became the highest CSP installed country in the world. The US is the second largest CSP market in the world and represented over 44% of global total installed capacity in
www.solar-pv-uk.com Issue IV 2011
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