Siemens to leave solar business, focus on wind and hydro power

Siemens announced that it will modify its business strategy and organizational setup with respect to renewable energy, focusing on wind and hydro power while divesting its solar business activities. The company is currently holding talks with potential buyers for the solar business. As part of this reorganization, the Energy Sector will be slimmed down and the Solar & Hydro Division will be discontinued.

In a statement, the company revealed that “due to the changed framework conditions, lower growth and strong price pressure in the solar market, the company’s expectations for its solar energy activities have not been met.” Siemens will continue to offer products for solar thermal and photovoltaic power plants, such as steam turbines, generators, grid technology and control systems, which are produced outside of the Solar & Hydro Division.

 

Siemens chart

 

Siemens will continue to operate the two business units Solar Thermal Energy and Photovoltaic until the sale. The remaining business activities of the Solar & Hydro Division (hydro power and solutions for energy storage devices) will remain within the Energy Sector.

“The global market for concentrated solar power has shrunk from four gigawatts to slightly more than one gigawatt today. In this environment, specialized companies will be able to maximize their strengths,” said Michael Sub, member of the Managing Board of Siemens AG and CEO of the Energy Sector. “The importance of renewable energies in the global power mix will continue to grow and hydro power and wind energy will remain renewable contributors. Our renewable energy activities will be focused on these two areas.”

-Bill O’Leary

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