Siemens plans solar business exit
Oct 12, 2012 - Julia Chan - pv-tech.org
|Siemens predicts that energy from
renewable sources will account for 28% of the
global power mix in 2030 and according to its
estimates, global power consumption will rise
from 22,100 TWh to 37,100 TWh in 2030.
German manufacturer Siemens has announced that it
is to sell its solar business activities as part of
a reorganization of its energy division and is already
in talks with a number of potential buyers.
As part of the restructuring, Siemens will discontinue
its Solar & Hydro division. The divestment of
the solar business activities will enable Siemens
to focus its renewable energy activities only on wind
and hydro power, the company said.
The divestment is in line with Siemens’ new
company-wide programme which was announced on October
11. Under the programme, Siemens will focus on five
areas, namely cost reduction; go-to-market; simplified
governance; optimized infrastructure and strengthen
core activities. The aim of the newly launched programme
is to enable Siemens to meet its own ambitious goals
and to underscore the targets defined in the One Siemens
Reasons cited for the divestment — which falls
under the “strengthen core activities” category
of its new programme — include lower growth
and strong price pressure in the solar markets. As
a result, the company’s expectations for its
solar energy activities have not been met. “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 Süß, a member of the Managing Board
of Siemens and CEO of the Energy division.
Siemens also intends to sell the division’s
photovoltaic activities and is in talks with several
parties who are interested in purchasing these activities.
However, the company stated that it would 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 will continue to operate the two business
units Solar Thermal Energy and Photovoltaic until
they are sold.
The Solar & Hydro Division generated revenue
in the low triple-digit millions in the last financial
year and has roughly 800 employees, of which 200 are
Renewable energy remains an important focus area
for Siemens. The company predicts that energy from
renewable sources will account for 28% of the global
power mix in 2030. According to its estimates, global
power consumption will rise from 22,100 TWh to 37,100
TWh in 2030. However, it believes that hydro power
and wind energy will contribute the largest share
of energy from renewable sources.