Page 7 - REM Annual Review 2021
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                         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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