The Role of Public Finance in CSP: Background and Approach to Measure its Effectiveness

The report analyzes the current state of concentrated solar power (CSP), noting that while it has potential to supply up to 10% of global energy demand by 2050, it remains expensive and heavily dependent on public support. The authors find that over 98% of total CSP investment to date has required public support. The document outlines a plan to evaluate the effectiveness of public finance through case studies in India and South Africa, expert dialogues, and a final lessons-learned paper. It details various public support mechanisms, including feed-in-tariffs, competitive tenders, reverse auctioning, and concessional loans, while highlighting the specific challenges and opportunities in emerging markets.

• Concentrated solar power (CSP) has a significant long-term potential, with some estimates suggesting it could provide up to 10% of global energy demand by 2050.
• CSP is currently highly dependent on public funding, with an estimated 98% of all total investment in the technology to date requiring some form of public support.
• Despite an increase in installed capacity from 0.5 to 2.5 GW over five years, CSP costs have not fallen significantly and remain substantially higher than conventional and other renewable energy alternatives.
• CSP offers unique advantages over other renewables due to its scalability and its ability to store energy as heat, which allows for dispatchable, around-the-clock power generation and the ability to provide base-load power.
• Public support mechanisms for CSP include revenue support policies (feed-in-tariffs, competitive tenders, and reverse auctioning), tools to reduce financing costs (public guarantees and concessional loans), and fiscal support policies (investment tax credits and bonus depreciation).
• In emerging markets, there is a shift toward competitive tenders and reverse auctioning over feed-in-tariffs to drive down costs, though reverse auctioning carries the risk of bids being too low for projects to be completed.
• The report identifies Spain and the U.S. as the dominant markets, but notes that emerging economies like India, South Africa, and China are playing an increasingly important role, often driven by international public finance.
• The authors will evaluate the effectiveness of public finance through two specific case studies: the 100 MW Rajasthan Sun Technique project in India and the 100 MW Upington power tower project in South Africa.

APA

Stadelmann, M., Frisari, G., Boyd, R., & Feás, J. (2014). The Role of Public Finance in CSP: Background and Approach to Measure its Effectiveness. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2014/01/SGG-Brief-The-Role-of-Public-Finance-in-CSP-Background-and-Approach-to-Measure-its-Effectiveness.pdf

Chicago

Stadelmann, Martin, Gianleo Frisari, Rodney Boyd, and Jacobo Feás. The Role of Public Finance in CSP: Background and Approach to Measure its Effectiveness. Climate Policy Initiative, 2014. https://www.climatepolicyinitiative.org/wp-content/uploads/2014/01/SGG-Brief-The-Role-of-Public-Finance-in-CSP-Background-and-Approach-to-Measure-its-Effectiveness.pdf.

Wikipedia

{{cite report |last1=Stadelmann |first1=Martin |last2=Frisari |first2=Gianleo |last3=Boyd |first3=Rodney |last4=Feás |first4=Jacobo |title=The Role of Public Finance in CSP: Background and Approach to Measure its Effectiveness |publisher=Climate Policy Initiative |date=January 2014 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2014/01/SGG-Brief-The-Role-of-Public-Finance-in-CSP-Background-and-Approach-to-Measure-its-Effectiveness.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stadelmann2014role, author = {Stadelmann, Martin and Frisari, Gianleo and Boyd, Rodney and Feás, Jacobo}, title = {{The Role of Public Finance in CSP: Background and Approach to Measure its Effectiveness}}, institution = {Climate Policy Initiative}, year = {2014}, month = jan, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2014/01/SGG-Brief-The-Role-of-Public-Finance-in-CSP-Background-and-Approach-to-Measure-its-Effectiveness.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }