The global solar concentrated photovoltaic (CPV) market will grow at a compound annual growth rate (CAGR) of 34.1% during 2013-2018, forecasts market research firm TechNavio. A major driver is the reduction in average installation prices of CPV systems, says the report ‘Global Solar Concentrated Photovoltaic Market 2014-2018’, which segments the market into high-concentrated, medium-concentrated and low concentrated photovoltaic, depending on the degree of concentration of CPV systems.
A CPV system uses an optical device to concentrate sunlight by a factor of 500-1000 in focusing it onto the solar cells, increasing their solar energy conversion efficiency while also reducing the size of the cells to a small fraction of the CPV module area (aiding the cost-efficient use of multi-junction solar cells). CPV requires a high level of radiation concentration to increase its output, while solar trackers help to follow the sun's rays during the day in order to maximize the capture of sunlight.
CPV is gaining competitiveness in areas with high direct normal irradiation (DNI). In particular, installations have increased in recent years in Spain, the USA, Australia, China and India, which receive high solar radiation. CPV is a relatively immature technology compared to other PV technologies, and an increase in concentration and efficiency will lead to a reduction in its levelized cost of electricity (LCOE), says the report. CPV is expected to achieve lower LCOE than PV technologies during the forecast period. Moreover, lower land requirements for CPV provide an advantage over PV, the report adds.
