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The "Twelfth Five-Year Plan" for renewable energy development highlights the growing potential of Concentrated Solar Power (CSP). By 2015, the plan aims to install 1 million kilowatts of CSP capacity, with the solar thermal power market expected to reach 15 billion yuan within five years. Over the next decade, as large-scale commercialization begins, the total investment in this sector could exceed 100 billion yuan, signaling a significant shift in China's energy strategy.
On July 1, 2010, Asia’s first tower-type solar thermal power station was completed in Yanqing, Beijing. Developed jointly by the Chinese Academy of Sciences, Huang Ming Solar, and Huadian Group, the project cost 120 million yuan and has a capacity of 1 MW. It serves as a demonstration site. Xi Wenhua, deputy director of the China Renewable Energy Society, called it the largest experimental project in China and a successful example of CSP technology.
Huang Ming Solar, involved in the Yanqing project, also built a 2 MW solar trough power plant in Sun Valley, Texas. Additionally, the company is closely monitoring a 1,000 MW solar thermal project in Golmud, Qinghai. In 2011, Ningxia Hanas New Energy Group broke ground on Asia’s first Integrated Solar Combined Cycle (ISCC) power station in Ningxia, with a planned capacity of 92.5 MW and expected operation by October 2013.
China Haiyang (430065) invested in a solar mirror project in Chengdu, while the China Power Investment Group launched a 100 MW solar thermal demonstration project in Golmud, with a total investment of 3.1 billion yuan. Guodian Group and Green Energy Group have started work on Direct Normal Irradiance (DNI) projects, and China Huadian Corporation and AVIC General Aircraft Co., Ltd. signed a strategic cooperation agreement in Inner Mongolia for solar thermal power generation.
In Haixi Prefecture, Qinghai Province, Delingha is emerging as a key location for CSP development. Besides the existing 10 MW project by China Solar, Guangdong Nuclear Power’s 50 MW trough project has received support from the Provincial Development and Reform Commission. Huaneng and Guodian Group are also exploring CSP projects in the region.
Companies like Hangzhou Guocai Co., Ltd. and Hangzhou Steam Turbine B Co., Ltd. are providing equipment for CSP projects, while Sanhua Co., Ltd. has invested nearly $20 million in Israel’s HF, a leader in solar thermal technology. The first flight of energy-saving is now entering the solar thermal field.
Local governments are eager to benefit from the growth of CSP. Yan Bingwu, a committee director, emphasized the need for local processing of raw materials and equipment, hoping that the government will support CSP enterprises to stimulate local industries. For cities like Delingha, where fiscal resources are limited, the solar thermal industry offers an opportunity to diversify the economy and reduce reliance on traditional sectors like chemicals.
Delingha has already planned a new energy industrial park covering 200 square kilometers, with 46 square kilometers dedicated to solar thermal energy. The park aims to produce 200 MW of solar thermal power during the “Twelfth Five-Year Plan†period. Yi Daixin noted that the government is reserving land for supporting companies to help establish a complete supply chain.
Despite the enthusiasm, Xi Wenhua remains cautious. He pointed out that only a small percentage of domestic photovoltaic projects have been successfully implemented, and even fewer CSP projects have reached operational status. While he acknowledges the long-term potential of CSP, he stresses that the technology is not yet fully mature or commercially viable.
Equipment manufacturers are seeing opportunities as the CSP industry grows. Companies like Qinghai Solar, with major shareholders including China National Holding Group and Hangzhou Steam Turbine B, are playing key roles in system design and production. The construction of CSP plants involves complex systems such as light collection, heat absorption, storage, and power generation, each requiring advanced technology.
As the industry develops, it is expected to drive innovation across multiple sectors, including software, glass manufacturing, communications, building materials, thermal equipment, and chemical processing. With continued investment and technological advancement, CSP is poised to play a vital role in China’s clean energy future.