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Today there are 6.1GW of Concentrating Solar Power (CSP) plants
operating, with a further 1.2GW under construction or in advanced
development. With a subsidy phase-out expected to halt development
of new projects after 2021 in Mainland China, there is little
activity beyond certain markets in Africa and the Middle East.
Yet, levelized cost of electricity from CSP has dropped by 50%
since 2010 and is expected to fall below 75 USD/MWh in 2021. The
addition of thermal energy storage (TES) increased the
dispatchability of CSP assets. But the technology remains expensive
compared to alternatives, except for durations of longer than eight
hours.
CSP+TESS still offer relatively cheap long duration
storage, but PV and battery hybrids are catching up quickly, due to
falling battery prices and much lower charging costs
The only pathway to CSP competitiveness comes through further
hybridization with TES and PV, and with design choices and
operating strategies that focus on maximizing value rather than
just minimizing cost. Technological improvements allowing higher
temperatures and efficiencies can contribute but depend on scale
and continued build-out. To maximize value, new projects could be
built in markets that face high PV penetration, long evening peaks,
a lack of other sources of flexibility, as well as high cost of
imported gas.
