Siemens exiting solar business, focusing on wind and hydro power
October 22, 2012 – Siemens says it will “modify its business strategy and organizational setup” with respect to renewable energy. It plans to divest its solar business activities, intending to focus its renewable energy activities on wind and hydro power. As part of this reorganization, the Energy Sector will be slimmed down and the Solar & Hydro Division will be discontinued.
The company cites changed framework conditions, lower growth and strong price pressure in the solar markets for the decision.
Siemens also intends to part with the photovoltaic activities of the Solar & Hydro Division. Siemens will continue to offer suitable products for solar thermal and photovoltaic power plants, says the company, such as steam turbines, generators, grid technology and control systems, which are produced outside of the Solar & Hydro Division.
Siemens will continue to operate the Solar Thermal Energy and Photovoltaic business units until they are sold. Thus, existing contractual obligations will currently not be affected. The remaining business activities of the Solar & Hydro Division (hydro power and solutions for energy storage devices) will remain within the Energy Sector. The company’s hydroelectric activities include the joint venture Voith Hydro for conventional hydro plants and the business of tidal turbines, which was fully acquired in the spring of 2012.
“The importance of renewable energies in the global power mix will continue to grow and hydro power and wind energy will remain the major renewable contributors. Our renewable energy activities will be focused on these two areas. More than 7000 employees work in the Wind Power Division and another 2,000 work in the related service business; and the Division has an order backlog of more than EUR 10 billion. Furthermore, we have established our company as the clear market leader for offshore wind power farms and we are also making very good progress in onshore business,” Suß said.
In the future, the Energy Sector will comprise the Divisions of Fossil Power Generation (thermal power plants), Wind Power, Oil & Gas (solutions for the oil and gas industry and small to mid-sized thermal power plants) and Power Transmission. The related service business will be reported within Fossil Power Generation, Wind Power and Oil & Gas. The Solar & Hydro Division has roughly 800 employees.