CSP Capacity Needs To Touch 196.7 GW By 2030: Report

CSP Capacity Needs To Touch 196.7 GW By 2030: Report

A latest report from the International Renewable Energy Agency (IRENA) claimed that in a scenario aligned with the Paris Agreement, global installed Concentrated Solar Power (CSP) capacity will need to reach 196.7 GW by 2030. The report dealt with various issues related to the growth and challenges to the sector.

The report said that global concentrated solar power (CSP) capacity increased by five-fold over the past decade, from 1.2 gigawatts (GW) in 2010 to approximately 6.4 GW by 2020. But the growth trajectory has levelled off in subsequent years. IRENA also said that through energy storage and grid stabilisation, CSP can play a crucial role in helping import-dependent nations achieve greater energy security.

“In a scenario aligned with the Paris Agreement, global installed CSP capacity will need to reach 196.7 GW by 2030 and 872.6 GW by 2050. Such an expansion would entail cumulative investments of approximately USD 657 billion by 2030, followed by an additional USD 1.83 trillion in investments from 2030 to 2050. CSP could employ up to 767 000 people in this scenario, up from 80 000.

As per the report CSP offers the potential for substantial job growth. An evaluation of job distribution across the value chain’s primary segments reveals that establishing a 100 megawatt CSP plant with a ten-hour thermal energy storage capacity requires about 1.16 million person-days.

“Labour is distributed unevenly across the value chain clustered in the engineering, procurement and construction (EPC) (46%), and operation and maintenance (O&M) (42%) sectors, and, to a lesser extent, in the manufacturing of essential components (9%).  A substantial portion of the CSP workforce (79%) has low- to medium-level technical skills, which are typically available within any national labour pool or can be developed through certification programmes or vocational training centres,” it said.

Many of these skillsets, the report said are already available in fossil-fired power plants, offering a valuable opportunity for workforce transition as the energy industry shifts towards renewable technologies. This transitionnot only leverages existing expertise but also facilitates the reskilling and upskilling of workers to meet the evolving demands of CSP.

“Countries lacking domestic equipment manufacturing can still generate employment in other value chain segments, especially in the EPC and O&M sectors. The deployment of CSP technology holds significant potential for local value creation. However, this potential can only be realised with policies that nurture local industry growth, foster innovation and engage communities. Strategic policy making can ensure that the socio-economic benefits of CSP projects are widely distributed and support the long-term sustainability of renewable energy initiatives,” it added.