More and more, renewable energies are competing against each other, instead of against conventional energy sources.
If you read the reports from major energy agencies and industry associations, you might be tempted to conclude that there is a bright future where all types of renewable energies will flourish and coexist peacefully. Well, they will not. Much like in any other sector, some technologies will trump others. In this article, we analyze how solar photovoltaic (PV) is winning over concentrated solar power (CSP).
In the 1980s, CSP seemed set to beat solar PV. While the latter relied on expensive solar modules more often used in small consumer electronics than in power plants (Exhibit 2), the former used tried and true technology borrowed from coal plants in order to produce vapor and drive a turbine (Exhibit 1).
Twenty-five years later, the face of solar energy has changed dramatically. In 2010 PV had a global installed capacity of approximately 35 GW, compared with CSP’s 1.5 GW (Exhibit 3).
Over the last years, we have had the privilege of working in these two sectors from multiple perspectives (supporting investors in selecting technologies and projects to invest on, helping start-ups in funding their ideas, and working with policy makers in defining incentive mechanisms) and believe that two factors have contributed the most for the dominance of PV over CSP:
Does this mean CSP will eventually disappear, trampled by PV? Not necessarily. CSP has one major advantage over PV: dispatchability. Current CSP plants can store thermal energy for up to 16 hours, which means that their production profile can match the demand profile (just like a conventional power plant). PV is not dispatchable, as a feasible commercial energy storage system does not yet exist. Dispatchability will be increasingly important when and where renewable energies achieve high penetration rates, so two things can happen: CSP becomes a commercially viable solution before a commercial PV storage system is developed, carving its own market segment; or the PV industry quickly solves the storage issue and becomes the solar technology of choice.
This article was originally published in X&Y Partners blog.
The information and views expressed in this blog post are solely those of the author and not necessarily those of RenewableEnergyWorld.com or the companies that advertise on this Web site and other publications. This blog was posted directly by the author and was not reviewed for accuracy, spelling or grammar.