A solar power tower or central receiver generates electricity from sunlight by focusing concentrated solar energy on a tower-mounted heat exchanger (receiver). This system uses hundreds to thousands of flat sun-tracking mirrors called heliostats to reflect and concentrate the sun's energy onto a central receiver tower. The energy can be concentrated as much as 1,500 times that of the energy coming in from the sun. Energy losses from thermal-energy transport are minimized as solar energy is being directly transferred by reflection from the heliostats to a single receiver, rather than being moved through a transfer medium to one central location, as with parabolic troughs. Power towers must be large to be economical. This is a promising technology for large-scale grid-connected power plants. Though power towers are in the early stages of development compared with parabolic trough technology, a number of test facilities have been constructed around the world.

The U.S. Department of Energy along with a number of electric utilities built and operated a demonstration solar power tower near Barstow, California, during the 1980's and 1990's.