Disruptions in Solar Market Lead Siemens to Unwind Solar Efforts for Lack of Buyer

The rapid and continuing decline in prices for solar photovoltaic cells, along with various other disruptions such as discontinuations of solar power projects in many parts of the world, have put a lot of solar technology companies in a bind. Alternative solar technologies such as concentrating solar thermal appear to be a particularly hard sell.

Siemens AG, Munich, Germany, moved last week to shut down its solar power operations, which it had been looking to sell since Oct. 2012. The operations, including  the parabolic-trough solar thermal technologies it acquired for $418 million in 2009 when it bought Solel Solar Systems in Israel, were unable to attract a viable buyer.

“After seven months of intensive sales efforts for our concentrated solar business, it now has become evident that, due to the increasingly difficult market situation, we will not find an investor for this business,” a spokesman for Siemens said in a statement.

Various sources including Israeli business news website Globes have reported that Siemens laid off 150 of the 200 people who worked at the former Solel Solar plant in Beit Shemesh, Israel. The remaining employees will provide technical support for an existing power project and three more nearing completion in Spain, Globes reported.

Siemens said when it put its solar unit on the block last fall that it sees the future of renewable energy in wind and hydroelectric power. “The global market expectations for concentrated solar power have 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, CEO of Siemens’ Energy Sector. Siemens said its operations related to hydro and energy storage will continue under the Energy Sector business.