A report released by Greentech Media (GTM) Research of Cambridge, Massachusetts, on May 16, found that concentrating photovoltaic (CPV) technology is breaking through into the utility-scale solar market—and forecasted that new CPV installations will increase from fewer than 5 megawatts (MW) in 2010 to more than 1,000 MW, or 1 gigawatt (GW), globally by 2015.

The study, Concentrating Photovoltaics 2011: Technology, Costs and Markets, also determined that the majority of large-capacity projects under development are in the United States (331 MW); with a handful in Spain (18 MW), and even fewer in Portugal (5 MW), Australia (3 MW), and Greece (2MW)—for a total of 359 MW globally.  

Concentrated photovoltaics (CPV) is one of the newest forms of solar energy technology on the market. CPV systems use optics to concentrate a large amount of sunlight onto a small area of solar photovoltaic materials to generate electricity. Unlike traditional, more conventional, flat-panel systems, CPV systems are often much less expensive to produce, because the concentration allows for the production of a much smaller area of solar cells.

According to the report results, providing developers with superior economics is a driving force in winning project bids, and, under the right circumstances, CPV can provide a lower levelized cost of electricity (LCOE) over non-concentrating solar photovoltaics (PV).  The levelized cost allows comparison of different power generation technologies of unequal economic life, capital cost, risk and returns, capacity factor, efficiencies or plant heat rate, fuel costs, and construction lead times.

“Developers choosing a solar technology for a large power plant focus on two factors: cost per kilowatt-hour (kWh), and bankability,” said Brett Prior, the report’s author and Senior Analyst at GTM Research. “CPV’s promise has been a lower cost/kWh, but it has been hamstrung by a lack of bankability, as the technology’s track record is much shorter and its performance warranties were not backed by strong corporate parents.”

CPV has undergone 40 years of research and development to get to this current stage. Sandia National Laboratories in Livermore, California, was the site for most of the early work, with the first modern photovoltaic concentrating system produced there in the late 1970s.

Currently, the CPV pipeline is dominated by three system manufacturers: Concentrix Solar GmbH (Freiburg, Germany) and its subsidiary Soitec S.A. (Bernin, France); Amonix Inc. (Seal Beach, California;  and SolFocus Inc. (Mountain View, California.

These three account for 96 percent of global projects in operation, construction or development (with signed purchase power agreements). Each has boosted its respective viability over the past two years, according to the study, by attracting strong strategic partners such as defense contractor Boeing (Chicago), engineering, procurement, and construction firms Bechtel (Montvale, New Jersey)  and Mortenson (Minneapolis), and insurance giant Munich Re (Munich/New York City) -- bringing credibility to the technology and helping future plants to secure project finance.

Solar developers and independent power producers (IPPs), such as Tenaska Solar (Omaha, Nebraska), Cogentrix (Charlotte, North Carolina), and Sol Orchard (Carmel, California) also have recently partnered with these leading CPV companies to develop large-scale plants in the United States.

The report was released shortly before the May 18 announcement of a new power purchase agreement (PPA) for 125 MW of CPV between Soitec and San Diego Gas and Electric Company. The CPV solar power plant, known as Imperial Solar Energy Center (ISEC) West, will be built on the site of a 1,057-acre former farm in southern California’s western Imperial County; completion is targeted in 2015.  

Interested in learning more? Register for an online presentation of the report on May 26 at 1 p.m (EDT), or visit the website.

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