Market Trends of Thermal Energy Storage Industry
Power Generation Expected to Witness Significant Growth
- The global installation of renewable power generation and energy security methods has accelerated the need for technologies like concentrated solar power (CSP) in solar power generation. These technologies are often used with thermal energy storage systems in the current scenario.
- The power generation through CSP sources is increasing significantly due to the increasing installation of CSP capacities globally. For instance, in 2022, the total installed CSP capacity was around 6.50 GW, which was 6.37 GW in 2021, as per IRENA. The growth in the technology application was witnessed in the industrial and commercial sectors. Several projects will be added to the solar CSP power generation portfolio, along with thermal energy storage systems.
- In January 2022, the Chinese government announced plans to build 11 CSP projects with thermal energy storage by 2024. The country's state-owned firms are expected to play a leading role in the upcoming projects in consortium with other industry players. They are gigawatt-scale mixed renewable energy projects to be added within two years.
- In June 2023, Vast Solar Pty awarded crucial engineering contracts for the VS1 CSP project in Australia to Worley. The project involves the construction of a 30 MW or 288 MWh CSP plant in Port Augusta, South Australia. This facility will utilize modular CSP tower v3.0 technology of Vast, intending to generate clean, dispatchable, and low-cost power with more than 8 hours of thermal energy.
- Due to these developments, the power generation segment is expected to occupy the largest market share during the forecast period.
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Europe Expected to Witness the Highest Growth
- Europe has been installing various thermal energy storage systems for a decade in the urban districts of countries like Spain, Austria, and Northern and Central Europe. The major driver of such a strategic step is the high energy consumption during winters and exploring renewable ways of district heating.
- The region has planned even more large-scale thermal storage projects to meet the ever-growing seasonal and short-term storage demand, with most installations with molten salt technology and underground hot water tanks. They are expected to serve as multifunctional energy hubs for future district heating sources and other applications.
- In August 2022, Kyoto Group in Norway signed a letter of intent (LoI) with Glomma Papp, a cardboard manufacturer, to enter a supply agreement for Kyoto's thermal energy storage molten-salt-based solution, Heatcube. This system is expected to be commissioned in 2023.
- In January 2022, the European Union and the European Investment Bank chose Malta Inc., the grid-scale thermal energy storage provider, to execute the Sun2Store thermal energy storage project in Spain. It is a 1,000-MWh/ten-hour energy storage system combining pumped heat technology with molten salt. The project will likely be developed in partnership with Alfa Laval.
- Such developments are expected to boost the European thermal energy storage market significantly.
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