Concentrated Solar Power (CSP) Market Report: Advancing Sustainable Development Goals

Market Overview and Growth Projections

The global Concentrated Solar Power (CSP) market is projected to experience a compound annual growth rate (CAGR) of 9.7% during the forecast period of 2024-2031. CSP technology utilizes mirrors or lenses to concentrate solar radiation, generating thermal energy for large-scale electricity production. This technology is a cornerstone in achieving global clean energy targets, directly contributing to Sustainable Development Goal 7 (Affordable and Clean Energy). A key advantage of CSP is its inherent capability for thermal energy storage, which ensures a stable and reliable power supply, thereby supporting SDG 11 (Sustainable Cities and Communities) by enhancing energy security.

Recent Industry Developments and SDG Impact

Recent activities in key markets underscore the global momentum towards sustainable energy infrastructure, in line with SDG 9 (Industry, Innovation, and Infrastructure) and SDG 13 (Climate Action).

• United States:
  • In August 2025, the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) launched an AI simulation tool to optimize CSP plant operations. This innovation supports SDG 9 by enhancing industrial efficiency and promotes SDG 7 by reducing the operational costs of clean energy.
  • The global CSP market was projected in July 2025 to exceed $5.90 billion, reflecting growing investment in renewable technologies crucial for climate action (SDG 13).
  • Conversely, the planned 2026 closure of the Ivanpah Solar Power Facility highlights the challenges in balancing technological performance with environmental and economic sustainability.
• Japan:
  • Japan’s CSP market was estimated at $6.5 billion in August 2025, with forecasts to reach $13.9 billion by 2033. This significant investment signals a strong national commitment to achieving SDG 7.
  • The broader Japanese solar power market is expected to grow from $3.32 billion in 2024 to $12.21 billion by 2033, driven by environmental concerns and the need to meet climate targets under SDG 13.

Key Market Trends Driving SDG Alignment

Several market trends are accelerating the adoption of CSP technology as a solution for sustainable development.

• Rising Investment in Renewable Infrastructure: Increased capital allocation for CSP projects is fundamental to building the resilient infrastructure required by SDG 9 and transitioning global energy systems per SDG 7.
• Integration of Thermal Energy Storage: CSP’s ability to provide dispatchable, round-the-clock power is critical for grid stability and supports the creation of sustainable and resilient communities (SDG 11).
• Declining Technology Costs: Reductions in the cost of CSP technology are making clean energy more affordable and accessible, directly addressing a primary target of SDG 7.
• Supportive Government Incentives: Policies promoting clean power generation are essential for mitigating climate change (SDG 13) and encouraging private sector investment in sustainable technologies.

Market Segmentation

The CSP market is segmented across several categories, each contributing to various sustainability objectives.

1. By Technology:
   • Parabolic Trough
   • Compact Linear Fresnel Reflector
   • Power Tower
   • Parabolic Dish System
2. By Capacity:
   • Less Than 50MW
   • 50 to 100MW
   • 100 to 250MW
   • More Than 250MW
3. By Application:
   • Utility: The primary application, directly serving SDG 7.
   • Desalination: Provides a sustainable solution for water scarcity, contributing to SDG 6 (Clean Water and Sanitation).
   • Chemical Production & Mineral Processing: Supports the decarbonization of industrial processes, aligning with SDG 9 and SDG 13.
   • Food Processing
   • Enhanced Oil Recovery (EOR)
   • Others

Competitive Landscape

Key industry players are instrumental in driving the innovation and deployment of CSP technology necessary to meet global Sustainable Development Goals. Leading companies include:

• BrightSource Energy
• Abengoa Solar
• Siemens Energy
• Acciona
• Solar Reserve
• Trivelli Energia.
• Abros Green
• Torresol Energy
• Aalborg CSP
• Enel Spa.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

   The article on the Concentrated Solar Power (CSP) market connects to several Sustainable Development Goals, primarily focusing on energy, innovation, economic growth, and climate action.

   • SDG 7: Affordable and Clean Energy: The entire article is centered on Concentrated Solar Power, a renewable and clean energy source. It discusses the growth, adoption, and technological advancements in this sector, directly aligning with the goal of ensuring access to affordable, reliable, sustainable, and modern energy for all.
   • SDG 9: Industry, Innovation, and Infrastructure: The text highlights innovation and infrastructure development within the CSP industry. It mentions the “integration of CSP with hybrid and storage technologies,” the development of an “AI simulation tool to enhance operations,” and different technologies like “Parabolic Trough” and “Power Tower,” all of which relate to building resilient infrastructure and fostering innovation.
   • SDG 13: Climate Action: By promoting a clean energy source like CSP, the article implicitly addresses the need to combat climate change. The market’s growth is driven by “rising environmental concerns and increasing demand for renewable energy solutions,” which are key components of climate action.
   • SDG 8: Decent Work and Economic Growth: The article details significant market growth, with the global CSP market projected to surpass “$5.90 billion in 2025” and Japan’s market projected to reach “$13.9 billion by 2033.” This economic expansion in a green technology sector contributes to sustainable economic growth.
   • SDG 17: Partnerships for the Goals: The article discusses a global market involving multiple countries (United States, Japan) and international companies (Siemens Energy, Abengoa Solar). It also mentions “Supportive government incentives,” which points to public-private partnerships to advance sustainable energy goals.

2. What specific targets under those SDGs can be identified based on the article’s content?

   Specific targets within the identified SDGs can be linked to the information provided in the article.

   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article directly supports this target by describing the high growth of the CSP market (“to grow at a high CAGR Of 9.7%”) and the “Rising adoption of renewable energy sources.”
   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The article points to this through its mention of “rising investments in renewable energy infrastructure,” the global nature of the market, and the development of new tools by entities like the U.S. National Renewable Energy Laboratory (NREL).
   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable… with greater adoption of clean and environmentally sound technologies. The focus on CSP technology, which is described as a “clean power generation” method, and the discussion of enhancing “efficiency and reliability” through hybrid and storage technologies align with this target.
   • Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors… encouraging innovation. The launch of an “AI simulation tool to enhance operations and maintenance for parabolic trough CSP plants” by NREL is a direct example of enhancing research and upgrading technological capabilities to improve efficiency and reduce costs.
   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article references “Governments are offering incentives to promote clean power generation” and Japan’s growing interest in CSP “as part of the nation’s renewable energy strategy,” which demonstrates the integration of climate-friendly policies at a national level.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

   The article provides several quantitative and qualitative points that can serve as indicators for measuring progress.

   • Indicator for Target 7.2: The article provides financial data that acts as a proxy for the increasing share of renewable energy. Specific indicators include the projected market size and growth rate (e.g., “global CSP market was projected to surpass $5.90 billion in 2025” and Japan’s market to reach “$13.9 billion by 2033”). The “high CAGR Of 9.7%” is another clear quantitative indicator of growth.
   • Indicator for Target 7.a: Progress can be measured by the level of investment in clean energy. The article provides market valuation figures, such as “Japan’s CSP market was estimated at $6.5 billion,” which serve as an indicator of financial flows into clean energy infrastructure.
   • Indicator for Target 9.5: An indicator for innovation is the development and deployment of new technologies. The article explicitly mentions the “launch of an AI simulation tool” by NREL, which is a concrete example of technological advancement aimed at improving the efficiency of CSP plants.
   • Indicator for Target 13.2: The existence and implementation of supportive policies can be used as an indicator. The article’s mention of “Supportive government incentives” implies that the number and scope of government policies promoting clean energy can be tracked to measure the integration of climate action into national planning.

Summary of SDGs, Targets, and Indicators

Source: openpr.com