【New Energy Development】Policy support is increasing; solar thermal power generation is seeing favorable conditions for development
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With increased policy support, concentrated solar power generation is seeing favorable conditions for development. Starting from the second half of this year, **there has been a significant boost in support for concentrated solar power generation; various important policy documents mention this industry and set a target of 5 million kilowatts. Previously, the **Energy Bureau also announced the first batch of 20 solar thermal power generation demonstration projects, setting a benchmark grid price of 1.15 yuan. Various signs indicate that the concentrated solar power industry is making substantial progress, and it is set to reach maturity and achieve industrialization during the 13th Five-Year Plan period. It is expected that during the 13th Five-Year Plan period, the contribution of the concentrated solar power generation industry to China’s economic output will exceed 600 billion yuan. Thermophotovoltaic power generation is a form of power generation in which solar light is concentrated using concentrators onto a heat-absorbing device; heat transfer then generates high-temperature gases or fluids, which are subsequently converted directly into three-phase alternating current through mechanical work. Its advantages lie in being pollution-free, having stable power generation, abundant resources, and the ability to integrate directly with existing power grids, giving it promising prospects. In line with the long-term goals set by the **Energy Administration, by 2020, a total installed capacity of 10 GW for concentrated solar power generation is to be achieved, with corresponding investment amounts reaching 300 billion yuan, or an average annual investment of 75 billion yuan. By then, the global installed capacity for concentrated solar power generation will reach 68.6 GW.
Global installed capacity forecast for concentrated solar power generation from 2015 to 2050 (unit: MW)
It is evident that within the next five years, the concentrated solar power industry will experience a period of support and growth. At this growth rate, according to the \"Analysis Report on Investment Strategy Planning for China’s Concentrated Solar Power Industry\" released by Qianzhan Industry Research Institute, it is estimated that by 2050, China’s installed capacity for concentrated solar power will reach 118 GW, while the global total installed capacity will be 982 GW. Concentrated solar power will then account for 11% of the world’s total electricity supply. However, the biggest problem facing the current concentrated solar power industry is the high initial investment and high power generation costs. It is reported that the initial investment for concentrated solar power generation is 30,000–40,000 yuan per kilowatt, while for photovoltaic and wind power it is less than 10,000 yuan per kilowatt; coal-fired power plants have an even lower cost of 4,000–5,000 yuan per kilowatt. Therefore, excessive upfront investment can to some extent affect investment enthusiasm. The high initial investment directly results in high power generation costs for the concentrated solar power industry; it will take time for these costs to decrease once technological advancements and large-scale production are achieved in this sector. Only in this way can the cost of solar thermal power generation become more competitive. In addition to high initial investment, concentrated solar power generation also faces issues such as technological gaps, reliability and lifespan problems, and a lack of operational experience. Moreover, many key components still rely on imports, making it challenging to achieve industrialization and large-scale development. As an emerging industry, it is normal for concentrated solar power generation to face an imperfect and immature industrial chain. With **strong support, the solar thermal power generation industry is developing well. It is expected that during the 13th Five-Year Plan period, more companies will enter this trillion-dollar blue ocean market in order to seize a share of it.