According to a new report by GBI Research, “Solar Thermal Power Market to 2020,” it will take worldwide government support to have a major impact on the renewable energy industry. Government attitudes to solar thermal power, or concentrated solar power (CSP), will be a key determinant to the future success of the market, which today, has a high cost of power generation while the technology achieves economies of scale.
The report comes to the conclusion that government provisions can push forward technological advances and boost installations. These moves will then lower the expense of the technology thus lowering the amount needed for project investments and power generation.
The U.S. and Spain are currently benefiting from Feed-In Tariffs (FIT), says the report. A FIT system offers a financial incentive to producers in various forms that can take the shape of premium tariffs, per kwH, over a fixed amount of time. In America, a regulatory framework among some states establishes mandates requiring utility companies to purchase alternatively generated electricity. In Spain, renewable energy investments are rewarded with tax rebates. Today, Spain and the U.S. hold the greatest share of the global CSP market.
The global CSP market is expected to grow by 2011 installed capacity of 1,546 MW to 47,462.9 MW in 2020, climbing at a Compound Annual Interest Rate (CAGR) of 44%.