Molten Salt Thermal Energy Storage is estimated to Witness High Growth Owing to Advancements in Renewable Energy Integration
The molten salt thermal energy storage market comprises energy storage systems that employ molten salts to facilitate thermal energy storage for electricity generation applications. Molten salt thermal energy storage technologies allow electricity generation facilities to store thermal energy for hours or even days. This enables generation of electricity from intermittent renewable energy sources like solar and wind for extending hours even when the sun isn't shining or wind isn't blowing. The primary advantages of molten salt include high heat transfer rates, low cost, compatibility with high-temperature applications, and non-toxicity. Rapid growth of renewable energy sectors worldwide has increased the demand for cost-effective energy storage technologies to time-shift the availability of solar and wind power according to electricity demand cycles.
The Global molten salt thermal energy storage market is estimated to be valued at US$ 1.34 billion in 2024 and is expected to exhibit a CAGR of 9.6% over the forecast period 2024-2030.
Key Takeaways
Key players operating in the molten salt thermal energy storage are Key players operating in the molten salt TES market are Yara International ASA, Acciona S.A., Abengoa SA, BrightSource Energy, Inc., SENER Grupo de Ingenieria, S.A., SolarReserve, LLC, Engie SA, SCHOTT AG, Torresol Energy Group, Hyme Energy ApS, Build to Zero, Kyoto Group, Malta Group, Pintail Power, Rpow, E2S Power, Kraftanlagen, Rondo Energy, Polar Night Energy, and Brenmiller. These companies provide integral components for molten salt TES including heat exchangers, molten salt pumps, thermal storage tanks, and control system panels.
Some key opportunities in the Molten Salt Thermal Energy Storage (TES) Market Demand include the increasing deployment of concentrating solar power plants and the integration of renewable energies into existing coal-fired and natural gas power plants. Advancements in molten salt compositions and thermal storage technologies are further improving efficiency and reducing costs, driving the growth of the market.
Market drivers
Growing emphasis on renewable energy integration and time-shifting of solar and wind power generation are the major market drivers for molten salt thermal energy storage. Many countries have introduced regulatory policies and incentive schemes to encourage greater incorporation of renewables into their energy mix through technologies like molten salt storage. Favorable government policies and investments in renewable energy infrastructure will continue dominating demand over the forecast period. Declining technology costs and improving roundtrip efficiencies of molten salt storage solutions will also boost their overall competitiveness.
Current Challenges in Molten Salt Thermal Energy Storage Market
The molten salt thermal energy storage market is still in its growth stage and faces several technological as well as economic challenges. Scaling up technologies for cost-effective thermal storage at utility scale and developing low-cost high-temperature heat transfer fluids are some key technological hurdles. High initial capital costs for setting up molten salt storage plants is a major economic challenge inhibiting widespread adoption. Integrating thermal energy storage systems with solar power plants and other renewable energy sources while maintaining efficiency also needs further research. Utility buyers prefer tried-and-tested technologies which adds to perception of risk for newer molten salt technologies. Overall, bringing down costs while improving performance will be crucial to drive future growth in this market.
SWOT Analysis
Strength: High energy density and ability to store heat for long duration at temperatures above 550°C. Molten salt mixtures have good heat transfer properties and chemical stability at high temperatures.
Weakness: Higher costs compared to alternative thermal storage technologies. Complexity and risks involved in operating at elevated temperatures.
Opportunity: Growing demand for cost-effective long-duration grid-scale energy storage to support the integration of solar and other renewable energy. Potential to provide baseload power when sun is not available.
Threats: Slow adoption due to technology and cost barriers. Competition from new and emerging thermal as well as battery energy storage technologies.
Geographic Regions
In terms of value, the molten salt thermal energy storage market is currently concentrated in Asia Pacific and North America regions. China dominates market demand due to large number of operational and under-construction solar thermal power plants using molten salt as the heat transfer fluid. The US is another major regional market driven by increasing utility-scale solar thermal projects and pilot plants exploring molten salt storage for grid flexibility.
The molten salt thermal energy storage market is expected to see fastest growth in the Middle East & Africa region during the forecast period. This is mainly attributed to the rising share of solar power in the energy mix of GCC and MENA countries. Countries such as Saudi Arabia, UAE and Morocco are actively supporting development of concentrated solar power plants with integrated thermal energy storage to meet renewable energy targets as well as ensure reliable power supply.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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