Molten Salt Thermal Energy Storage Market

Molten Salt Thermal Energy Storage Market Size (2024- 2029)

The Global Molten Salt Thermal Energy Storage Market was worth USD 3.03 billion in 2023 and is anticipated to reach a valuation of USD 9.08 billion by 2029 and is predicted to register a CAGR of 24.58% during 2024-2029.

The Molten Salt Thermal Energy Storage Market is expected to see strong growth during the forecast period, with an increasing focus on renewable energy production, especially solar and thermal energy. As renewable energy occupies a more important place in the energy system, the need for energy storage has become an essential part of renewable energy production. According to the US Energy Information Administration, fuel production decreased by 7% in 2016

Renewable energy production, by contrast, increased by almost 7% during the same period. However, with the increase in renewable energy production, it is absolutely necessary to store this energy, because the production of renewable energy depends on the wind and the sun. This need to keep renewable energy production from sources such as solar, thermal, and hydrogen would drive the demand for energy storage systems, including molten salt thermal energy storage.

Market Drivers:

The global molten salt thermal energy storage market is driven by the cost savings of energy storage systems (ESS). Additionally, the emergence of solar-enhanced oil recovery is expected to further drive the growth of the molten salt thermal energy storage market. The increasing adoption of renewable energy sources is driving the popularity of energy storage systems. Factors such as increased electricity consumption, declining cost per kilowatt for energy storage, and government pressure for cleaner fuel are expected to drive the molten salt thermal energy storage market. The increasing adoption of renewable energy sources coupled with the growing demand for concentrated solar power (CSP) will drive market growth. Increased government action to adopt sustainable technologies will help meet established carbon emission reduction targets, thus stimulating market demand. The growing demand for energy-efficient and competitive sources, together with the continuous and reliable energy needs in various sectors, will complete the landscape of the industry. Increasing demand for thermal energy storage systems in HVAC applications is also likely to drive the molten salt thermal energy storage market.

Market Restraints:

The expense of thermal energy storage technologies depends on the application, size, and thermal insulation technology. The costs of molten salt thermal energy storage systems based on phase change materials and thermochemical storage are generally higher relative to the cost of the storage capacity they provide. The cost of storage systems represents almost 30% to 40% of the total cost of the system. Further research on energy storage technologies to reduce initial capital requirements is expected to make molten salt thermal energy storage technologies more competitive in the near future.

Market Recent Developments:

• Delingha's 50 MW focussed solar power plant located on the high-altitude Tibetan plateau in China was developed, built, and perfected by a company devoted to researching solar tower technology.

• Viking Cold Solutions, one of the leading providers of thermal energy storage technologies for the frozen food and low-temperature cold storage industries, broadcasts the inclusion of its energy storage technology in the new program of The Custom Thermal Storage Incentive from Xcel Energy, which is part of their customized efficiency programs in Colorado and Minnesota.

MOLTEN SALT THERMAL ENERGY STORAGE MARKET REPORT COVERAGE:

Market Segmentation:

Molten Salt Thermal Energy Storage Market - By Technology:

• Sensible heat storage

• latent heat storage

• Thermochemical storage

The sensible heat storage segment is expected to dominate the global market as it is the simplest, oldest, and cheapest method.

Molten Salt Thermal Energy Storage Market - By Storage Material:

• Water

• Phase change material

• Others

The water segment is projected to dominate the market as it is the most common storage material.

Molten Salt Thermal Energy Storage Market - By End-Use:

• Commercial and Industrial

• Public Services

• Residential

Utilities are expected to dominate the market, as the primary generation of renewable energy goes through the centralized grid.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The global molten salt thermal energy storage market is segmented into Asia-Pacific, North America, Europe, the Middle East, Africa, and South America. North America has the largest share of the molten salt thermal energy storage market. A large number of energy storage projects have been seen in the United States in recent years, which is believed to boost the market in the region. Increased research and development activities aimed at energy storage, as well as positive consumer prospects for renewable energy production, will drive the growth of the US molten salt thermal energy storage market. In 2018, the United States accounted for 41% of the total of 1,361 operational projects and 33% of the 18 projects under construction worldwide. Increased measures to limit the carbon footprint, as well as increased investments in solar energy, will increase the installation of these storage systems in Europe. The government's goals for energy efficiency and renewable will create significant growth opportunities for the industry. Lombardy, Italy adopted an incentive program in August 2017 with a budget of about $ 4.5 million and offers discounts of more than $ 3,000 that cover up to 50% of the cost of buying and selling and installation of energy storage systems.

Impact of Covid-19 on the Molten Salt Thermal Energy Storage Market

In early 2020, the development of renewable energy technologies in various markets was already challenged by financing, policy uncertainties, and grid integration, which has been further intensified by COVID-19. According to the IEA, the coronavirus has significantly impacted global growth in adding renewable energy capacity. According to IEA estimates, the number of new renewable energy installations around the world will decline in 2021as as a result of the unprecedented COVID-19 crisis.

For the analysis of the impact of coronavirus on the molten salt thermal energy storage market, we have considered key parameters such as the impact of the pandemic on electricity demand and investment in the electricity sector. The IEA forecasts that renewable electricity capacity additions will decline by 13% in 2020, while CSP installed capacity additions will decline by 38% in 2021 compared to 2019, the first downward trend since 2000. COVID-19's impact is further intensified by political uncertainties associated with the recently funded renewable energy projects, just prior to this outbreak. According to the Electricity Union, new investments by utilities are likely to decline by 10-15% due to the coronavirus outbreak. All these factors have been considered for the analysis of impact scenarios of this pandemic in the global market for molten salt thermal energy storage.

Market Key Players:

1. Ice Energy
2. Abengoa Solar
3. SolarReserve,
4. Baltimore Aircoil Company
5. TAS Energy
6. Steffes Corporation,
7. Burns & McDonnell,
8. DN Tanks,
9. Caldwell Energy Company,
10. Goss Engineering,
11. Fafco, BrightSource Energy,
12. Cryogel,
13. Viking Cold Solutions,
14. Evapco amongst