Page 7 - REM Annual Review 2021

REM FEBRUARY REM

Costs mechanisms, alongside fiscal incentives to
Meanwhile, the size of CSP project has been ris- underpin the early development of CSP.
ing, making them more suitable for utility-scale New market entrants that are actively con-
exploitation, while larger sizes favour efficiency sidering the deployment of CSP include Jordan,
and are strongly linked to lower costs per unit of Lebanon and Tunisia.
electricity. Outside the MENA region, China has 500
Meanwhile, the size of CSP project has been MW of CSP already being deployed, 414 MW is
rising, making them more suitable for utili- being developed and 100 MW is under construc-
ty-scale exploitation, while larger sizes favour tion. Most of this activity is happening under a
efficiency and are strongly linked to lower costs government-sponsored set of initial CSP pilot
per unit of electricity projects.
With global CSP capacity additions estimated
Future support at 310 MW, compared with 520 MW in 2019,
But international financial institutions (IFIs) and the coronavirus (COVID-19) has taken its toll,
multilateral development institutions, as well as according to data from the International Energy
national governments, can play an important Agency (IAE). However, additions will bounce
role in addressing this barrier. back to 790 MW in 2020, driven by Morocco,
By supplying longer-duration, lower-interest China and the UAE.
financing to CSP plant developers, these entities The IEA said that annual growth of 24%
can help to reduce the costs of initial market until 2030 was needed if CSP was to contribute
development. to meeting the Paris Agreement’s 2030 climate
A second requirement, the report said, was goals. This would represent annual additions
a supportive regulatory framework, especially rising to 8,000 MW.
as solar PV and storage is still limited to 11 As such, serious investment is needed by cur-
countries. rent market players, while new countries must
Broadly, an enabling policy framework for invest in CSP plus storage if the technology is to
CSP will have a combination of market support contribute to a greener global economy. ™

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