Molten Salt Thermal Energy Storage Market Is Estimated To Witness High Growth Owing To Increasing Demand For Sustainable Energy Solutions

The Molten Salt Thermal Energy Storage Market is estimated to be valued at US$ 2.2 Bn in 2024 and is expected to exhibit a CAGR of 9.6% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights’ Rapid growth in renewable energy production and increasing focus on sustainability are the major drivers of molten salt thermal energy storage market.

Renewable energy production from solar and wind is intermittent in nature. Thermal energy storage helps to store excess energy produced during off-peak hours and supports base load power generation. Molten salt is a viable thermal storage medium that helps deliver power as per demand even after sunset or when wind is not blowing. This addresses the issue of intermittency associated with renewable energy sources. Furthermore, rising focus on reducing carbon footprint is encouraging large scale adoption of renewable energy solutions. Molten salt based thermal energy storage is integral to making renewable energy a round the clock power source.

Key Market Trends: Favorable government policies and increasing Research & Development activities are expected to boost the molten salt thermal energy storage market growth over the forecast period. Governments across nations are introducing attractive incentive schemes and initiatives to promote sustainable energy solutions. For instance, the U.S. Department of Energy is investing significantly towards the development of next-generation molten salt technologies that can enhance renewable energy integration and flexibility of power grids. Leading energy companies are also expanding their molten salt storage capacity to support large scale solar thermal plants. Notable innovations include development of cost-effective high temperature thermal storage solutions using molten salt.

Molten Salt Thermal Energy Storage Market Opportunities: By Technology Type Insights: The sensible heat storage segment accounts for the largest share of the global molten salt thermal energy storage market. Molten salt acts as a storage medium and can absorb and release thermal energy as it undergoes heating and cooling cycles. Sensible heat storage technologies utilize the molten salt’s ability to store heat while undergoing temperature changes without undergoing phase transitions. They provide cost-effective thermal energy storage solutions for concentrating solar power plants.

Thermo-chemical energy storage systems utilize reversible chemical reactions to store energy in the form of chemical bonds. When these reactions are reversed, the stored energy is released as heat. These systems provide high energy density storage compared to sensible heat technologies. Research is ongoing to develop efficient thermo-chemical processes using molten salts to enable cost-competitive long duration energy storage solutions.

By Application Type Insights: The power generation segment dominates the market for molten salt thermal energy storage, driven by the use of these storage systems in concentrating solar power plants. Molten salt thermal energy storage enables CSP plants to generate electricity even when the sun is not shining by helping to store solar heat energy cost-effectively for power generation during peak demand periods.

Key Market Takeaways: The global molten salt thermal energy storage market is anticipated to witness a CAGR of 9.6% during the forecast period 2024-2031, owing to ongoing investments in renewable energy projects integrating thermal energy storage technologies. On the basis of technology type, the sensible heat storage segment is expected to hold a dominant position, accounting for over 60% of the market share owing to its relatively lower costs. On the basis of application, the power generation segment dominates the market and is expected to exhibit strong growth due to integration of molten salt storage in concentrating solar power plants. Regionally, North America is expected to hold a dominant position over the forecast period, driven by supportive government policies and initiatives to replace retiring fossil fuel power plants with renewable energy projects with storage capabilities.

Competitor Insights: Key players operating in the molten salt thermal energy storage market include YARA International ASA., SCHOTT AG, and others focusing on advancing thermo-chemical storage technologies. Partnerships between solution developers and renewable plant owners/investors are also expected to support market growth over the coming years.

Recent Developments: In June 2023, a new 100 MW molten salt energy storage facility was opened in Australia. The facility is paired with a solar thermal power plant and can store up to six hours of energy to keep supplying power even after sunset. Similarly, in July 2023, another project commissioning a 110 MW solar park with 15 hours of molten salt storage was announced in South Africa. Spain also began construction on a massive plant combining 500 MW solar power with 17.5 hours of storage using molten salt technology. Such large-scale projects effectively harness renewable power through long duration storage. More information in full report.