Siemens has announced it plans to sell its loss-making solar business after a fall in profits.
The German firm said due to “changed regulations, lower growth and strong price pressure in solar markets, the company’s solar energy activities have not been met”. It intends to focus its renewable energy activities on wind and hydropower instead and is currently holding talks with potential buyers.
Michael Süß, member of the Managing Board of Siemens AG and CEO of the Energy Sector 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.”
Siemens will, however, continue to offer products for use in solar power plants such as turbines and generators. The solar industry has recently been hit by falling subsidies, weaker sales and an increase in price competition, especially by Chinese manufacturers.
Last month, the EU launched an anti-dumping investigation into Chinese solar panels after some firms claimed the products were being exported for less than the cost of making them.
Siemens predicts energy from renewable sources will account for 28% of the global power mix in 2030 and hydropower and wind will contribute the largest share. It also claims global power consumption is expected to rise from 22,100 terawatt-hours (TWh) to 37,100 TWh in 2030.