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GERMAN GIANT SIEMENS BUYS SOLEL FOR $418 MLN

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Thursday, November 12th, 2009

“Siemens and Solel are a perfect match. Solel enriches Siemens’ capacities… Israeli companies are very successful, backed by years of experience, development and production of field equipment for the creation of solar energy,” – Peter Loescher, president and chief executive of Siemens. 

German industrial conglomerate Siemens is buying Israel’s Solel Solar Systems Ltd. for about $418 million so as to expand its business with solar thermal power plants.

It is Siemens second solar power acquisition in Israel. Two months ago Siemens bought 40% of Arava Power for $15 million.

Solel’s products optimally complete Siemens’ current offering. With the acquisition of Solel, Siemens significantly expands its access to the product technology necessary for the establishment of solar thermal power plants, enabling it to offer about 70% of the components to its clients

“In the future, we’ll be able to offer the key components for the construction of parabolic trough power plants from a single source and to further enhance the efficiency of these plants,” Siemens’ Renewable Energy division head Rene Umlauft said.

Unlike photovoltaic solar panels, which use the sunlight to create electricity, solar thermal power plants use the sun to heat water which then creates the steam required to power a turbine generator which produces electricity to the grid. 

Solel is one of the world’s two leading suppliers of solar receivers, – key components of parabolic trough power plants. The company has been active in Spain since 2006, supplying key components for 15 solar thermal power plants with a combined capacity of 750 megawatts.  The firm is also active in the US.