In the world of alternative energy, CPV, or concentrated photovoltaic systems don’t always get the kudos they deserve. While solar power itself has been much lauded as a solid solution to energy issues (especially in more off-the-grid areas), CPVs increase the efficiency of solar cells significantly.
The optics used in CPV concentrates sunlight by a factor of 500 to 1,000 and focuses it on solar cells, which are reduced to a small fraction of the CPV module. This helps in the cost-effective usage of highly efficient multijunction solar cells.
Solar CPV is increasingly being used in areas that receive high solar radiation, such as Spain, the US, Australia, China, and India. Solar CPV is a relatively new technology compared to other photovoltaic technologies and its growing concentration, increased efficiency and smaller space usage is leading to widespread adoption, spurring a 34.1 percent CAGR from 2013-2018.
While there are many distinct factors contributing to this impressive growth, TechNavio analysts have pinpointed a few significant trends expected to impact the growing Global CPV Market.
Increased Efficiency of CPV Systems
Many solar CPV companies around the world are working to increase the efficiency of CPV systems in order to reduce overall system costs. The efficiency of CPV modules is around 30 percent, which is already higher than solar PV and CSP technologies.
However, there is still a huge scope for improvement to further reduce the overall cost. With increased efficiency and declining costs, solar CPV technology is actually expected to achieve grid parity sonner rather than later.
Growth in Investments
The high initial capital necessary for solar CPV systems requires clear, long-term, effective, and predictable financial incentives. Governments in many countries such as Spain and Italy have started working on setting long-term CPV targets along with providing financial incentives, and many venture capitalists are also recognizing the high growth potential for solar CPV technology and are backing it with huge investments.
After the success of 40 MW Cogentrix of the Alamosa project, CPV systems have now proven their ability to perform at the utility scale. This is expected to help solar CPV technology to grow commercially, especially in areas with high direct normal irradiance (DNI).
Emergence of New Markets
The Americas have traditionally been a stronghold in the global solar CPV, but with a slowdown of the US economy during the past few years, solar CPV developers are looking for regions outside the US to expand their businesses. There has been a strong emergence of new markets for solar CPV in Middle Eastern countries such as Saudi Arabia, which have high DNI areas and have a potential to localize manufacturing.
Solar CPV developers such as Soitec and Amonix are gaining an interest in the MENA region and are planning to install solar CPV plants in the areas with high DNI. These investment, and other related activities will continue to boost the Global Solar CPV Market over the projected period.
