Unlike the photovoltaic power generation that most people are familiar with, concentrated solar power is more like a giant combination of a “solar stove, water kettle, and steam engine.” Its operational process consists of three steps: First is “concentration,” in which tens of thousands of heliostats, like sunflowers following the sun, precisely focus sunlight onto a tall tower or a receiver pipe. Second is “water heating and thermal storage,” where the high temperatures generated by concentration are used to heat molten salt, storing the solar energy collected during the day. Finally, when electricity is needed, the hot molten salt is used to heat water, producing high-temperature steam that drives a steam turbine to generate power. Its power-generation principle is highly similar to that of coal-fired power plants, and it delivers very stable power output, making it extremely grid-friendly.
As the energy transition continues to deepen, why is concentrated solar power (CSP) being given priority support?
It serves as a stabilizer and regulator for the power grid. As wind and solar power capacity has increased substantially, the power grid is facing challenges related to volatility and intermittency. Concentrated solar power (CSP) systems function as “giant batteries,” enabling continuous, stable power delivery to the grid even after sunset or during cloudy and rainy weather. Concentrated solar power can also provide rotational inertia to help maintain grid frequency stability, making it particularly well suited for large-scale deployment in Northwest China, where hydropower-based regulation capacity is limited. It is a new engine for industrial-chain upgrading. Concentrated solar power (CSP) is a quintessential technology-intensive, high-end manufacturing sector, encompassing precision machinery, automatic control systems, high-temperature materials, and several other disciplines. Developing concentrating solar power will drive advancements in precision mirror fields, specialized molten salts, high-temperature heat absorbers, and other related equipment and materials, thereby enhancing China’s competitiveness within the global new energy value chain. From the perspective of industry development stage, after years of progress, China has successfully mastered mainstream CSP technologies such as tower, trough, and linear Fresnel systems. It has also established a world-leading CSP industrial chain. The per-kilowatt construction cost of CSP plants has dropped from approximately RMB 30,000 a decade ago to RMB 15,000, while the levelized cost of electricity has fallen to around RMB 0.60 per kWh, laying a preliminary foundation for large-scale deployment. Despite its promising prospects, CSP technology still faces several “growing pains” on the path to commercial scale. The newly introduced policies are designed to precisely address these challenges.
Breaking the cost bottleneck. Concentrated solar power (CSP) suffers from high initial capital costs and relatively weak market competitiveness. How can it bridge the “last mile” to grid parity? The policy proposes reducing costs through economies of scale by rationally allocating CSP capacity as needed within large-scale energy bases and developing a number of new-energy power plants primarily based on CSP that serve as flexible, regulating resources. This approach is expected to drive average annual growth in CSP installed capacity of nearly 3 million kilowatts. Once large-scale deployment and domestic substitution are achieved, the cost of concentrating solar power is expected to become comparable to that of coal-fired power. Clear market expectations have served as a “reassuring pill” for the industry, which will significantly attract long-term capital and encourage companies to make forward-looking investments in R&D and production capacity.
Breaking the bottleneck of technology. The primary reasons for the high costs of concentrating solar power (CSP) projects are insufficient large-scale equipment, as well as heavy reliance on imported core technologies and materials. As policies evolve from demonstration projects to commercial operations, they are placing increasingly stringent demands on the reliability and stability of equipment. Policies encourage the domestic production and performance optimization of critical equipment to reduce reliance on imports and enhance equipment operational efficiency and service life.
Breaking the deadlock in collaboration. In power systems, concentrating solar power (CSP) needs to identify its “optimal location.” The policy clarifies the role of concentrating solar power (CSP) within multi-energy complementary energy bases, addressing grid operators’ concerns about dispatch and pricing. It encourages the development of integrated new-energy projects that use CSP as a flexible, regulating power source, while promoting synergistic growth with emerging high-energy-consuming industries such as data centers and electric-battery manufacturing. This approach aims to fully integrate CSP into the operation of the new power system. Looking ahead to 2030, with the implementation of supportive policies and advancements in technology, concentrating solar power (CSP) is expected to exhibit three major development trends. Application scenarios are becoming more integrated. The dominant energy model of the future will be “concentrated solar power with thermal storage”: it will be co-located with photovoltaic and wind power plants to serve as a stabilizing backup; and it will be integrated with coal-fired power plants to achieve combined carbon reduction and efficiency gains. Concentrated solar power will no longer operate in isolation; instead, it will be deeply integrated with other energy sources to maximize its systemic value. Diversification and lean approaches in technological pathways. Various technological approaches, including tower, trough, and linear Fresnel systems, will compete for development based on local resource conditions. Meanwhile, intelligent operations and maintenance, efficiency improvements, and the adoption of new materials will be key to reducing costs. The industry will shift its focus from simply maximizing installed capacity to improving generation efficiency and reducing the levelized cost of electricity. Industry role based on petrochemicals. Concentrated solar power (CSP) companies will transition from solely generating electricity to becoming multifunctional, integrated energy service providers that offer power generation, peak-shaving, backup power, and district heating. Concentrated solar power will become an indispensable supporting and regulating power source in the new electric power system, providing comprehensive energy services. Developing concentrating solar power is a pivotal strategy for China during this critical phase of its energy transition. By illuminating this “beacon of stability,” the foundation of the new energy system will become even more solid and reliable. (Wang Yichen)
(Reprinted from Economic Daily)