A new study from Emerging Energy Research says that the technology known as “concentrated solar power” or CSP is the fastest growing utility-scale renewable energy alternative after wind power, with up to $20 billion expected to be invested in CSP over the next five years.
Ever used a magnifying glass to kill a bug or burn a leaf with sunlight? That’s concentrated solar power. In the energy business, rather than focus the sun’s rays to burn bugs and leaves, CSP technology uses mirrors to focus the sun’s rays and convert the sun’s energy into high-temperature heat, which is then used to generate electricity in a steam generator or, in some cases, to power a Stirling Engine.
The U.S. Department of Energy is very involved in research and development of three types of concentrating solar technologies: trough systems, dish/engine systems, and power towers.
“With natural gas prices tripling and current volatility expected to continue, CSP is well-positioned to compete against other electricity generation technologies in the near-to-medium term,” says Reese Tisdale, EER’s senior analyst. “In countries such as the U.S. and Spain with higher solar resources, land availability and sufficient government support to kick-start the industry, utility-scale solar CSP technology has the potential to become an integral part of the generation mix,” Tisdale adds.
Spain and the U.S. are currently the two leading countries in the CSP industry, and CSP installations in Spain and the U.S. are expected to surpass a combined 7,500 MW by 2020, EER forecasts.
But the U.S. market for CSP is being hampered by - what else - tax policy. Says EER: “A large potential pipeline (of CSP projects) in the US is stalled by uncertainty over the future of a 30% investment tax credit (ITC), now due to expire at year-end 2008.”
Outside Spain and the U.S., Italy, France, Portugal and Greece are all on the verge of seeing new CSP developments, as well as parts of the Middle East and North Africa, according to EER.
I’d link you to the study, except they want $3,750 per copy. But Solar Industry Magazine has a pretty good summary of the study.
Companies active in the CSP space include Solel, Solar Millennium, Abengoa Solar, Ausra, BrightSource Energy, SkyFuel and Stirling Energy Systems - which are looking to leverage their specialized technology capabilities. Also in the mix: independent power producers and utilities that are investing in CSP to go along with their other renewable power generation assets.
“It is no surprise that the largest owners of wind power plant globally are also emerging as significant players in CSP,” says Tisdale. These players, led by Iberdrola, FPL Energy, Acciona and EDP are looking to add CSP projects to their mounting wind portfolios as a means to diversity other utility scale technologies. FPL Energy, notes Tisdale, is currently the leading IPP investor in CSP, with its wnership of seven solar plants in California built in the late 1980s.
The study, “Global Concentrated Solar Power Markets and Strategies, 2007-2020,” can be found at Emerging-Energy.com.
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