Siemens is shaking up its renewable energy strategy to focus on wind and hydropower after revealing it is in talks with potential buyers to sell its solar business.
The German engineering giant has revealed its renewable energy organisational reshuffle as part of its 2014 programme. Siemens said its solar energy division has failed to meet its expectations as a result of changed framework conditions and strong price pressures in solar markets.
The company said it is planning to divest its solar business activities and is in talks with potential buyers.
"The global market for concentrated solar power has shrunk from 4 gigawatts to slightly more than 1 gigawatt today. In this environment, specialised companies will be able to maximise their strengths," Michael Süß, member of the managing board of Siemens AG and CEO of the energy sector said in a statement.
The company said it is also planning to part with the solar photovoltaic activities of its solar and hydro division.
However, Siemens intends to continue offering products for solar thermal and photovoltaic power plants, such as generators, steam turbines and grid technology, until the sale of its solar division.
When the solar and hydro business is broken up, the company’s hydropower and solutions for energy storage devices will remain within 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 the major renewable contributors. Our renewable energy activities will be focused on these two areas," said Süß.
He also said the company had become a "clear market leader for offshore wind power farms", adding Siemens was also making "very good progress" in onshore wind farms.
Süß said Siemens has more than 7,000 employees who work in its wind power division, with an additional 2,000 employees who work in the related service business.
The move by Siemens to discontinue its solar business is being viewed as a major blow to the company’s aims to become a market leader in the area of concentrated solar power.