Siemens creates new units for wind, solar/hydro power

As the demand for clean energy keeps growing, Siemens has decided it makes sense to split its renewables business into two independent units: one focused on wind, the other focused on solar and hydropower.

“We want to continue our success story in wind power business and establish the basis for further growth,” said Michael Suess, CEO of the Siemens Energy Sector. “We’re separating solar and wind power because these two markets are at very different stages of development. In the new unit Solar & Hydro we’ll be moving forward with research and development in the field of solar power to further increase our competitiveness. In our established wind power business we’ll be forging ahead with industrialization and internationalization.”

The two new units come into being on Oct. 1.

Suess added that energy storage will be included in the Solar & Hydro unit.

“Germany, the rest of Europe and the whole world need power storage systems for the integration of renewables,” he said. “Our Solar & Hydro Division will therefore also be handling the strategic issue of power storage.”

Siemens has seen rapid growth in its wind-energy business since 2004. Its new Wind Power Division will be headed by Felix Ferlemann, who until now has led the Chassis Systems Division of Benteler Automotive.

A CEO for the new Solar & Hydro Division has not yet been named.

“With the new setup we want to ensure that we continue the success story with our wind power business in the future, too,” Suess said. “The starting position for that is good: We’ve got an order backlog of almost 11 billion euros, and we’re world market leader in offshore wind farms, the market sector posting the fastest growth. We also want to forge ahead with onshore wind turbines.”

Following the opening of two new factories in the US and China in late 2010, Siemens is planning further production facilities in Canada, the UK, India and Russia, and now also in Brazil. It also wants to expand its market share with the development of wind turbines for China and India.

On the solar and hydropower side, Siemens recently acquired a minority stake in Semprius, a developer of high concentrating photovoltaic (PV) modules. The new division will also encompass the company’s stakes in Voith Hydro (35 percent) and in Marine Current Turbines (approximately 10 percent), a pioneer in tidal current energy turbines.