Cambridge, Massachusetts, 28 April 2009 - Led by development in Spain and potential in the US, concentrated solar power markets are entering a new growth phase, amidst a tumultuous global economic landscape. The CSP industry is scaling rapidly with 1.2 GW under construction as of April 2009 and another 13.9 GW announced globally through 2014, according to a new study from Emerging Energy Research analyzing global CSP markets and strategies.
Spain is the epicenter of CSP development with 22 projects for 1,037 MW under construction, all of which are projected to come online by the end of 2010. The current Spanish Royal Decree, which calls for 500 MW of solar CSP by 2010, has been largely responsible for the dramatic increase in CSP development activity in Spain since 2008. However, a review of Spain's feed-in tariff (FIT) scheme is underway and its outcome will have a significant impact upon 6 GW of projects in the pipeline. The success of Spain's longer-term CSP position will largely depend on the government's willingness to continue fostering CSP development through feed-in tariffs, according to EER.
"If the 2009 global financial climate remains challenging, weaker projects in the CSP pipeline and some developers will be shaken out," says EER Research Director Reese Tisdale. "However, the long-term trend toward CSP technology adoption remains strong, particularly with the Spanish government carrying forward near-term build-out," says Tisdale.
Despite only 75 MW of CSP under construction, the US continues to offer significant opportunity for CSP, with 8.5 GW in the pipeline and scheduled for installation by 2014. "The US market has been held up considerably by the permitting process in California, the US Bureau of Land Management process, and more recently by the financial crisis," says Tisdale. "Ultimately, the US market is considered to have the greatest upside for CSP potential given its solar resources, space availability, proximity to load, and growing pressure to mitigate carbon emissions," says Tisdale.
Attracted to promised lower costs, US utilities have turned to CSP -- through both Power Purchase Agreements and direct ownership -- to meet their Renewable Portfolio Standard mandates. "In the US CSP market, the advantage will fall to larger independent power producers and project developers with access to capital, companies with a demonstrated technology, and companies able to navigate the currently drawn out permitting processes," says Tisdale. While parabolic trough represents more than 96% of all CSP projects currently under construction in Spain, the technology accounts for only 40% of the US CSP pipeline. Backed by sufficient government incentives, Spanish CSP developers have not been compelled to take on major technology risks, according to EER. "The US market has a greater technology mix, as the highly cost-competitive marketplace encourages innovative technology development, such as central receiver, dish engine, and linear Fresnel," according to Tisdale. "The race is on to determine which CSP technology can deliver, particularly in the uncertain economic climate."
Spain and the US will continue to lead CSP project development activity for the next decade due to a combination of resource and policy support, according to EER. The rest of southern Europe has yet to catch neighboring Spain's solar CSP fever, primarily due to a lack of government incentives. According to EER's study, CSP activity is also gaining momentum in the Middle East, North Africa, and the Asia Pacific regions. About the Study
EER's new study - Global Concentrated Solar Power Markets and Strategies 2009-2020 - analyzes all aspects of the global CSP landscape, including market trends and strategies of key players. This 250-page study, released in April 2009, is now available for downloading from EER's Website. Follow this link for the study's Table of Contents and Order Information
About Emerging Energy Research Emerging Energy Research is a leading industry advisory firm providing unrivaled balance and perspective on the world's clean and renewable energy markets. Based in Cambridge, MA and Barcelona, Spain, EER works with more than 1,000 stakeholders across the industry, providing research-based advice, support, and analysis to executives and key decision-makers including utilities, developers, independent power producers, technology promoters, manufacturers, and investment companies.