CITIC SEC: Large-scale development of solar thermal power promotes continued cost reduction, industrial chain manufacturers are expected to benefit fully.

CITIC SEC released a research report stating that concentrating solar power (CSP) has dual functions of regulating power supply and long-term energy storage. It plays a role in regulating the power system and also has the potential to act as baseload power, providing reliable resources to enhance the integration of new energy. In recent years, supported by policies, CSP has rapidly developed as a complementary regulating power source for new energy bases. Technological advancements, localization, and scale have driven down the cost of CSP electricity rapidly. Although there is still a gap compared to mainstream power sources, it is expected to enhance its competitiveness in the power market through cost reduction and increased regulatory value, thereby supporting the healthy development of the industry. The firm indicated that the shortage of power system capacity and regulating resources may continue to be exposed, driving a significant increase in demand for peak regulation and other ancillary services. CSP has excellent regulation capabilities and has space to demonstrate its value in the power system. Policy support, technological advancements, and scale development are expected to continuously reduce costs and obtain higher electricity prices, promoting long-term and sustainable industry growth. Manufacturers deep in the CSP industry chain are expected to benefit fully; operators who have earlier investments in CSP are expected to gain advantages in technology and experience accumulation. Event: Recently, the National Development and Reform Commission and the National Energy Administration issued the "Opinions on Promoting the Large-scale Development of CSP" to promote the large-scale development of CSP and provide support for the integration of new energy. Key points from CITIC SEC include: - CSP has peak regulation and long-term energy storage capabilities, playing roles in baseload and regulating power supply. - The main CSP technology route developed in China is molten salt tower type, which converts solar energy into electrical energy through a heat absorption-collection-heat exchange system and a steam turbine. CSP projects can act as regulating power sources through the heat storage of molten salt in the heat exchange system, and with additional electric heating systems, they can participate in load filling, thereby providing long-term energy storage functions for the power system. CSP has strong regulation capabilities, with a peak regulation depth close to 80%, load rate change of 3%-6% of rated power, and energy storage duration of 8-15 hours, providing good support for the integration of new energy. In addition, mature CSP projects worldwide and domestically can generally operate continuously for tens of days, demonstrating the potential to act as baseload power sources in specific environments. The construction of large base...