Falling solar cell prices have been marginalizing concentrated solar power (CSP) products for years. But after the adoption of thermal energy storage (TES) using molten salt (which can increase the capacity factor of CSP) and using levellized cost of electricity (LCOE), CSP can now compete with solar cells in costs.
In addition, markets such as the Middle East and North Africa have been experiencing a shift in energy policies and in the next five years, the two regions will be among promising markets for solar energy, Digitimes Research believes. In particular, major parts of the energy policies of the two markets include investing in large-size CSP plants to generate electricity.
After hitting the bottom in 2011, the CSP market has been rebounding. While many countries develop CSP, China is unlikely to give a strong emphasis to CSP because its government has been keen to save the domestic solar cell makers.
