The near- to mid-term outlook for concentrating solar power: mostly cloudy, chance of sun

The history of concentrating solar power (CSP) is characterized by a boom-bust pattern caused by policy support changes. Following the 2014–2016 bust phase, the combination of Chinese support and several low-cost projects triggered a new boom phase. We investigate the near- to mid-term cost, industr...

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Bibliographic Details
Published inEnergy Sources, Part B: Economics, Planning, and Policy
Main Authors Lilliestam, Johan, Ollier, Lana, Labordena, Mercè, Pfenninger, Stefan, Thonig, Richard
Format Web Resource
LanguageEnglish
Published Abington Taylor & Francis Ltd 10.06.2020
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Summary:The history of concentrating solar power (CSP) is characterized by a boom-bust pattern caused by policy support changes. Following the 2014–2016 bust phase, the combination of Chinese support and several low-cost projects triggered a new boom phase. We investigate the near- to mid-term cost, industry, market and policy outlook for the global CSP sector and show that CSP costs have decreased strongly and approach cost-competitiveness with new conventional generation. Industry has been strengthened through the entry of numerous new companies. However, the project pipeline is thin: no project broke ground in 2019 and only four projects are under construction in 2020. The only remaining large support scheme, in China, has been canceled. Without additional support soon creating a new market, the value chain may collapse and recent cost and technological advances may be undone. If policy support is renewed, however, the global CSP sector is prepared for a bright future.