ERLANGEN, Germany, Oct. 22 (UPI) -- German engineering conglomerate Siemens said Monday it was backing out of solar power due to a shrinking market.
"The global market for solar thermal energy has fallen from four gigawatts to recently a little more than one gigawatt," Michael Sub, a member of Siemens' board of directors and the chief executive officer of its energy sector, said in a statement.
The company said its Solar and Hydro Division would be phased out and that it would divest its solar business activities.
While phasing out solar, Siemens is still betting on renewable energy.
"Energy from renewable sources will account for 28 percent of the global power mix in 2030," the company said.
Total power consumption is also expected to grow, Siemens said. But "hydro power and wind energy will continue to contribute the largest share of energy from renewable sources," the company predicted.
Siemens said its new energy sector would be made up of a Divisions of Fossil Power Generation, Wind Power, Oil and Gas and Power Transmission.
Siemens said "more than 7,000 employees" at the company work in the Wind Power Division, while 2,000 work in the related service business, which has a $13 billion backlog of orders.
By comparison, the Solar & Hydro Division generated revenue in the triple-digit millions in the past fiscal year," Siemens said.
Siemens said 800 jobs could be affected, but it would keep its solar business running until a buyer was found.
