North America Concentrated Solar Power (CSP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Concentrated Solar Power (CSP) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America concentrated solar power (CSP) market is expected to grow at a CAGR of more than 2.5% in the forecast period of 2022-2027. North America is the leading region in the implementation of renewable energy technology. This can be ascribed to the ease of availability of sustainable technologies and infrastructure in the region. During the Covid-19 pandemic, due to lockdown and cross-border restrictions, there were limitations on the movement of manpower and supply of goods & raw materials in North America. Furthermore, the lockdown resulted in lower demand for electricity from commercial and industrial facilities, as these facilities were completely shut down during the pandemic. However, due to the rise in the investment in renewable energy solutions in all major countries in North America, the market is expected to grow in a couple of years. Moreover, the government's supportive policies and reduction in solar energy technology costs are expected to drive the market during the forecast period. However, higher initial investment and operational costs, compared to solar PV technology, are anticipated to hinder the market's growth during the forecast period.

Key Highlights

• The Power tower project is expected to dominate the market during the forecast period. This technology accounts for 60% of the projects. The system provides higher efficiency as the concentration of light is onto a one single receiver which yields higher temperature.
• According to the International Renewable Energy Agency, Mexico is expected to provide opportunities for CSP market in the near future. The country has potential to generate 60 GW of wind and solar energy by 2030. Futhermore, the country is also aiming to utilize 21% of its the renewable enegry by 2030. To achieve this Mexico need annual addition of 1.7 GW of wind energy, 1.5 GW of solar photovoltaic PV and 100 MW concentrated solar power.
• The United States has dominated the concentrated solar power market. The government's supportive policies for the research and development of concentrated solar power plants are expected to drive the market in the country.

Key Market TrendsThe Power Tower is Expected to Dominate the Market

• The power tower systems are expected to witness higher demand during the forecast period. These systems could efficiently achieve high temperatures with the help of high concentration ratios by using different configurations of the collector field and receiver. Solar power towers have high-temperature cycles, which permit higher efficiency in converting solar radiation to electricity; this could result in the reduction of the Levelized energy cost.
• These systems have the potential to operate in temperatures higher than 1000°C. However, there are few technological barriers due to which CSP companies can only use CSP plants at temperatures in the range of 600–800°C. Thus, the companies are developing CSP, which could utilize higher temperatures than the current CSP plants. This increase in efficiency would further reduce the Levelized energy cost.
• The presence of concentrated solar power projects in North America since the 1980s. Increased focus and investment in renewable energy projects to limit carbon and greenhouse gases emission is expected to drive the concentrated solar power market in the region. In 2010 the total CSP capacity was around 535 MW, and in 2020 the CSP capacity was around 1818 MW.
• Hence, the power tower systems are expected to dominate the market for concentrated solar power during the forecast period.

The United States to Dominate the Market

• North America is one of the leading regions in installing concentrated solar power projects. The region witnessed 1st concentrated solar power in 1979 near Albuquerque, New Mexico, the United States. The project's total capacity is 5 MW and is still operational.
• The United States is the leading country in the region regarding the project installed and the overall capacity of concentrated solar power projects. In 2021, the United States contributes more than 95% market share in North America's concentrated solar power market.
• In 2021, the United States had 26 projects which generated around 1,810 MW of energy from concentrated solar power, whereas in 2010, concentrated solar power generation was about 535 MW.
• The U.S. Department of Energy Solar Energy Technologies Office (SETO) provides financial and technical support for CSP research and development projects. In this, the department focuses on improving performance, reducing operational cost, and improving the life & reliability of materials, components, and integrated solutions for CSP technologies. Therefore, in total concentrated solar power is expected to have significant growth in the market.

Competitive Landscape

North America concentrated solar power market is moderately fragmented. Some of the key players in the market include CSP Ultra Lite Solar. , BrightSource Energy, Inc., EnergyNest AS., ENGIE, and ACCIONA.

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