Released October 24, 2012 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- German engineering giant, Siemens AG (NYSE:SI) (Munich, Germany), has announced plans to exit the solar power market and sell of its business.
The company, one of Europe's largest players in the solar photovoltaic (PV) sector, claimed that its decision to ditch its solar business comes in the face weaker subsidy support and cut-throat price competition. It admitted that its "expectations for its solar energy activities have not been met." The company said that it's renewable energy drive will focus on wind and hydropower projects, which it believes will continue to dominate the renewables sector for decades to come.
"The global market for concentrated solar power has shrunk from 4 gigawatts (GW) to slightly more than 1 GW today," explained Michael Süß, member of the Managing Board of Siemens AG and CEO of the Energy Sector. "In this environment, specialised companies will be able to maximize their strengths."
Siemens plans to sell off its solar business and is holding talks with "interested parties" at the moment. It 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 its Solar & Hydro Division.
Siemens claimed the decision will not affect its commitment to renewable energy. It predicts that energy from renewable sources will account for 28% of the global power mix in 2030, with global power consumption will rise from 22,100 terawatt-hours (TWh) to 37,100 TWh in that timeframe.
Süß said: "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 7,000 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 10 billion ($13 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."
Just over a year ago, Siemens became the first major engineering company to abandon the nuclear power sector. At the time, the company said its decision was influenced by the disastrous events at the Fukushima nuclear plant in Japan in March 2011 and the subsequent public and political backlash against nuclear power. For additional information, see September 21, 2011, article - Siemens Walks Away from Nuclear Power.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The company, one of Europe's largest players in the solar photovoltaic (PV) sector, claimed that its decision to ditch its solar business comes in the face weaker subsidy support and cut-throat price competition. It admitted that its "expectations for its solar energy activities have not been met." The company said that it's renewable energy drive will focus on wind and hydropower projects, which it believes will continue to dominate the renewables sector for decades to come.
"The global market for concentrated solar power has shrunk from 4 gigawatts (GW) to slightly more than 1 GW today," explained Michael Süß, member of the Managing Board of Siemens AG and CEO of the Energy Sector. "In this environment, specialised companies will be able to maximize their strengths."
Siemens plans to sell off its solar business and is holding talks with "interested parties" at the moment. It 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 its Solar & Hydro Division.
Siemens claimed the decision will not affect its commitment to renewable energy. It predicts that energy from renewable sources will account for 28% of the global power mix in 2030, with global power consumption will rise from 22,100 terawatt-hours (TWh) to 37,100 TWh in that timeframe.
Süß said: "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 7,000 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 10 billion ($13 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."
Just over a year ago, Siemens became the first major engineering company to abandon the nuclear power sector. At the time, the company said its decision was influenced by the disastrous events at the Fukushima nuclear plant in Japan in March 2011 and the subsequent public and political backlash against nuclear power. For additional information, see September 21, 2011, article - Siemens Walks Away from Nuclear Power.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
