Siemens Buys Solel, Signals Commitment to Solar Thermal

I was delighted to see Siemens’ recent acquisition of Israel-based Solel Solar Systems for US$418 million.  To me, this again signals mega-corporations’ commitment to the concentrating solar thermal power (CSP) market. René Umlauft, CEO of Siemen’s Renewable Division remarked in an interview, “The market for solar thermal energy is highly promising, and vigorous growth is expected to continue for Solel.”

The German technology behemoth appears to be pursing a strategy of vertical integration, building or buying companies that provide troughs, collectors, and other components required for solar thermal deployment.

As I’ve often pointed out, solar thermal is not right for every geography; if you’re Iceland, you’re going to have to come up with a different plan if you want renewables. But a huge percentage of the Earth’s population lives in areas that would be conveniently served by large, hot, and otherwise unusable land masses, like the deserts of the southwestern US. Likewise, Siemens recognizes that solar thermal power production is most efficient in the sunbelt, and predicts significant development in the Middle East and Chile.