Africa Thermal Energy Storage Market Size (2024 - 2029)

The Africa thermal energy storage market is experiencing growth driven by the increasing focus on renewable energy generation, particularly concentrated solar power, and the rising demand for thermal energy storage systems in HVAC applications. Government incentives and advancements in material sciences are further propelling the market. However, challenges such as declining battery costs and the high expenses associated with developing thermal energy storage systems may impede market expansion. Despite these challenges, opportunities abound, particularly in Algeria, which is leveraging its solar energy potential, and South Africa, where the demand for thermal energy storage is bolstered by large CSP deployments and the need for backup power in commercial and industrial sectors.

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Market Size of Africa Thermal Energy Storage Industry

Africa Thermal Energy Storage Market Summary
Study Period 2021 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2021 - 2022
CAGR 10.00 %
Market Concentration Medium

Major Players

Africa Thermal Energy Storage Market Major Players

*Disclaimer: Major Players sorted in no particular order

Africa Thermal Energy Storage Market Analysis

Africa thermal energy storage market is projected to register a CAGR of over 10% during the forecast period.

The market is negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

  • Over the medium term, factors, such as growing impetus for renewable energy generation in Africa (like concentrated solar power, increasing demand for thermal energy storage systems in heating, ventilation, and air conditioning (HVAC) application), government incentives for thermal energy storage systems, and advancements in material sciences, are some of the major factors driving the demand for the market studied in the region.
  • On the other hand, the declining battery costs leading to an increase in installations of battery storage and high costs of developing and installing thermal energy storage systems associated with thermal energy storage are expected to hinder the growth of the market in Africa.
  • Nevertheless, Algeria's energy requirements are heavily dependent on natural gas, which amounts to about 93% of power generation in the country. However, the country has enormous solar energy potential and is planning to release several tenders for renewable capacity creating ample opportunity for the market players.
  • South Africa is expected to be the largest market for thermal energy storage in the Africa region, due to large deployments of CSP with thermal energy storage, along with increasing demand for backup power for commercial and industrial applications.

Africa Thermal Energy Storage Industry Segmentation

Thermal energy storage is a technology that enables the transfer and storage of heat energy or energy from ice or water or cold air. This method is integrated into new technologies that complement solar and hydroelectric power sources. The thermal energy storage applications can be applied in the following fields in concentrated solar power plants to supply dispatchable power even during the night, In thermal power plants to operate more and rapid load changes, To provide heat supply security in combined heat and power plants and to separate the heat and power generation temporarily, To recover and utilize heat lost in process industries.

Africa thermal energy storage market is segmented by application, storage type, and geography. By application, the market is segmented into power generation and heating and cooling. By storage type, the market is segmented into molten salt, heat, ice, and other storage types. The report also covers the market size and forecasts for the thermal energy storage market across major countries in the region. For each segment, the market sizing and forecasts have been done based on revenue (USD Billion).

By Application
Power Generation
Heating and Cooling
By Storage Type
Molten Salt
Heat
Ice
Other Storage Types
By Geography
South Africa
Morocco
Rest of Africa
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Africa Thermal Energy Storage Market Size Summary

The Africa thermal energy storage market is experiencing a resurgence, having rebounded to pre-pandemic levels after the setbacks caused by COVID-19. The market is driven by a growing focus on renewable energy generation, particularly concentrated solar power, and the increasing demand for thermal energy storage systems in HVAC applications. Government incentives and advancements in material sciences further bolster this growth. However, the market faces challenges from declining battery costs, which encourage the adoption of battery storage, and the high expenses associated with developing and installing thermal energy storage systems. Despite these challenges, countries like Algeria and South Africa present significant opportunities due to their substantial solar energy potential and the need for backup power solutions, respectively.

In South Africa, the thermal energy storage market is poised for expansion, supported by large-scale deployments of concentrated solar power with thermal energy storage. The country's shift towards renewable energy integration and government initiatives, such as the Renewable Energy Independent Power Producer Procurement Program, are expected to drive demand for thermal energy storage technologies. Additionally, projects like the Redstone CSP and the use of innovative storage solutions, such as Azelio's TES.POD, highlight the region's commitment to enhancing grid flexibility and meeting increasing electricity demand. The market is moderately consolidated, with key players like Eskom Holdings, Abengoa SA, and ACWA Power International actively participating in the sector's growth.

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Africa Thermal Energy Storage Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitutes Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Application

      1. 2.1.1 Power Generation

      2. 2.1.2 Heating and Cooling

    2. 2.2 By Storage Type

      1. 2.2.1 Molten Salt

      2. 2.2.2 Heat

      3. 2.2.3 Ice

      4. 2.2.4 Other Storage Types

    3. 2.3 By Geography

      1. 2.3.1 South Africa

      2. 2.3.2 Morocco

      3. 2.3.3 Rest of Africa

Africa Thermal Energy Storage Market Size FAQs

The Africa Thermal Energy Storage Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)

Eskom Holdings SOC Ltd, Abengoa SA, ACWA Power International, SENER Group and Engie SA are the major companies operating in the Africa Thermal Energy Storage Market.

Thermal Energy Storage Market in Africa Report Snapshots

Africa Thermal Energy Storage Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)