Erlangen, Germany, October 22, 2012 — In a shift of its overall renewable energy strategy, Siemens will give up its solar business and instead focus on wind and hydropower, according to a statement by the company. The German industrial giant is currently in talks with possible buyers, according to reports, but no solid dollar figures have yet surfaced.
"The company plans to divest itself of its solar business and leads to discussions with interested parties," the statement said. "In renewable energy, Siemens wants to focus in future on wind and water power."
The company cited reasons including changed environment, slower growth and strong pricing pressure in the solar markets, saying that expectations have not been fulfilled in the field of solar energy.
Worldwide, the solar energy market is struggling with decreasing subsidies from world governments and strong competition from China. Both the European Union and the U.S. Department of Commerce are engaged in anti-dumping investigations against Chinese solar firms.
According to the statement, the global market for concentrated solar power has shrunk from 4 GW to slightly more than 1 GW. Besides its concentrated solar activities, Siemens also intends to sell the division's photovoltaic activities but will continue to operate them until they are sold.