With the success of the Gemasolar solar thermal power plant, molten salt tower technology has been recognized by the industry as one of the mainstream directions for the future development of solar thermal power generation. Countries around the world are actively deploying and investing in molten salt tower technology and projects. China has also stepped up the pace of molten salt tower technology application through the construction of demonstration projects. Driven by policies and market demand, global investment in solar power assets saw significant growth in 2022, reaching $490 billion, exceeding fossil fuel investment for the first time. The installed capacity of solar power is expected to continue growing rapidly in major markets like China and Europe over the next few years thanks to generous government subsidies and industrial support.
Gemasolar pioneered the commercialization of molten salt tower technology
The 20MW Gemasolar power plant built by Torresol Energy in Spain successfully integrates molten salt thermal energy storage technology with a solar tower system. It can continuously generate electricity for 24 hours by storing excess heat during the day. This is a major breakthrough in solving the intermittency problem of solar power generation. Gemasolar’s years of smooth operation has proven the viability of molten salt tower technology in the commercial sector. The plant has received international awards and is seen by many as a pioneer of next-generation solar thermal power plants.
Global deployment and investment in molten salt tower technology
Encouraged by Gemasolar’s success, companies and countries around the world are actively researching and deploying molten salt tower technology. In the US, SolarReserve’s 110MW Crescent Dunes solar tower project is undergoing commissioning tests. Spain’s Abengoa is also building a 110MW molten salt tower plant called Cerro Dominador in Chile. China has stepped up plans for molten salt towers after gaining experience with earlier water-based solar thermal towers. More project investment is flowing into this technology globally thanks to its obvious advantages in energy storage and stability.
Record global investment growth in solar power assets
Global capital investment in solar power assets jumped 38% year-on-year to $490 billion in 2022, finally overtaking fossil fuel investment for the first time. Solar is seeing unprecedented policy support in major markets like the US, EU and China. US clean energy subsidies reached $369 billion, while EU subsidies are over $270 billion along with more aggressive solar deployment targets. China aims to build 1,000TWh of renewable capacity by 2025, equivalent to Japan’s total power generation today. With strong incentives and national targets, growth trends for solar power installation and asset investment are expected to continue rising rapidly over the next few years especially.
Future challenges around cost inflation and supply bottlenecks
While the medium-term outlook for further expansion of solar power is bright, the industry also faces challenges around cost inflation for key materials like steel, aluminum and copper. Higher interest rates also increase financing costs for solar projects compared to fossil fuel plants. Logistics bottlenecks and labor shortages could also hamper growth if not properly addressed. But despite the headwinds, solar power is still on an overall accelerating growth trajectory thanks to its compelling economics and abundance.
With proven energy storage capability, molten salt tower technology has emerged as a mainstream direction for solar thermal power plants. Countries around the world like US, Spain and China are actively investing in molten salt tower projects. Global solar power asset investment reached record levels in 2022, finally surpassing fossil fuel investment. Growth is expected to continue rising rapidly driven by generous government subsidies, aggressive installation targets and improving cost competitiveness. Solar power is well on track to become the world’s dominant electricity source within the next decade.