Under the July sun, the International Solar Energy Society (ISES) and International Energy Agency’s Solar Heating and Cooling Program (IEA SHC) held the webinar:
“Harnessing Solar Thermal Energy for a Sustainable Future”
The session discussed the latest advancements in solar thermal energy, including innovative solar district heating systems and applications in various industrial sectors – an important topic for us at RE-WITCH. Emerging developments in solar electrification for high-temperature heat storage and heating were also covered.
The presentation started with Werner Weiss, founding member of the Austrian Research Institute AE Intech who presented large-scale solar thermal heating systems and SHIP (Solar Heat for Industrial Processes) systems.
Building on the previous insights, Bärbel Epp, founder and managing director of the German consultancy Solarico, also discussed the need to step up solar thermal with tools and instruments that allow it to become a real investment asset in the coming years.
Wrapping up the session, Guglielmo Cioni, Chief of Business Development at TVP Solar and President of Solar Heat Europe, discussed the need to raise capital for solar thermal and for solar thermal companies to invest in additional production capacity as well as invest in training people to produce, promote, and install the technology. TVP Solar is a partner in RE-WITCH, who will demonstrate its solar thermal HVFP technology in three demo sites of the project.
To this end, the company will:
- Assess the feasibility and engineer the solar thermal system for each demo site;
- Ensure optimal integration of the solar thermal systems into the RE-WITCH heat-to-cold solutions;
- Train local partners/ operators and supervise installation and commissioning;
- Fine-tune the operation of the solar thermal systems; and,
- Share operational data, lessons learnt and recommendations from the demo-sites.
Geographical Trends
- Europe and the US are the primary hubs for SHIP (Solar Heat for Industrial Processes) innovation and deployment, supported by public funding and private investments.
- Emerging markets such as Mexico and other Latin American countries are also showing increased adoption despite the lack of public funding.
The SHIP market , regardless of its high growth potential, faces significant challenges. In 2023, sales cycles for industrial clients did not shorten as expected. The cautiousness of customers, coupled with the unpredictable energy market characterized by falling gas prices and rising interest rates, contribute to this hesitancy. Despite having numerous leads across various countries, no projects were closed.
The crisis with the war in Ukraine and the peak of gas prices has made companies more cautious
Client Hesitation
- Industrial clients are often hesitant to adopt SHIP technologies due to long sales cycles and fluctuating energy prices.
- The decision-making process within companies can be prolonged, especially with recent energy market volatility.
The recent SolarEurope General Assembly highlighted the European market specificities. SolarEurope represents most of the solar thermal value chain, from manufacturers to project developers. The encouraging development of the sector is promising but remains at an early stage.
While solar PV has surged ahead, solar thermal still has untapped potential. For it to scale to similar levels, the industry needs to adopt strategies that make it financially attractive to investors, akin to how PV has done with power purchase agreements (PPAs) and subsidies.
Recent Developments
- Spain’s Dominance: Spain leads SHIP installations thanks to, among others, European funding and its favorable conditions.
- Global Growth: Countries like France, China, and the Netherlands are also dynamic SHIP markets.
- Emerging Markets: New installations are seen in countries like Mexico, Jordan, Cuba, Ecuador, and Brazil, indicating global spread.
Large-scale solar thermal projects, especially in district heating and industrial processes, offer immense growth potential. A case in point is Philippe Soran’s project in Groningen, The Netherlands, which used project financing to secure investment and establish a long-term heat purchase agreement.
Energy service companies (ESCOs), specialized firms that provide a wide range of energy solutions, including the design, implementation, and financing of energy-saving projects, could be significant for residential solar thermal adoption. While citizens may deny investing in renewable sources of energy due to high costs, financing installations and repaying costs through fixed fees make solar thermal more accessible and affordable.
Alternative energy sources play a crucial role in the transition away from fossil fuels:
- Geothermal Energy: Harnessing heat from the Earth’s interior, geothermal energy offers a sustainable and reliable power source, especially in regions with active geothermal activity. However, initial capital investment and exploration risks remain challenges.
- Renewable Thermal Energy: Technologies like heat pumps and solar water heaters use renewable sources (such as air, water, or ground) to provide heating and cooling, contributing to reducing greenhouse gas emissions.
- Renewable Electricity: Solar, wind, and hydropower are essential sources, with hydropower dominating the global renewable energy landscape.
- Molten Salt and Solid-State Storage: In concentrated solar power (CSP) plants, molten salt acts as a heat transfer fluid. Solid-state storage tanks also store thermal energy, enabling high-temperature operation and efficient energy storage.
- Other Technologies: Tidal power, wave power, and biofuels are emerging alternatives. Tidal and wave power harness energy from ocean tides and waves, respectively. Biofuels, derived from organic materials, offer a renewable fuel source.
To achieve ambitious targets, such as the EU’s goal of tripling installations by 2030, the solar thermal industry must innovate. Boosting production capacity, investing in workforce training, and adopting performance-based energy sales models must be included. The solar thermal industry is at a key moment. Embracing new business models and providing clear performance metrics are crucial for attracting investment and achieving growth. SolarEurope urges all stakeholders to collaborate and leverage available resources to realize solar thermal energy’s full potential.
Collaboration, innovation, and strategic partnerships will drive progress toward a sustainable future.
Catch up with the event recording: https://www.youtube.com/watch?v=QHNNJulm1KM
