One of the major backers has pulled out of a solar energy power plant plan for Africa and the Middle East.


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One of the major backers has pulled out of a solar energy power plant plan for Africa and the Middle East.

“We see our part in Dii as done,” says spokesman Torsten Wolf of Siemens, one of 13 founding partners of the consortium, which is also based in Munich. Siemens also said that it will pull out of the solar-energy business altogether. Its decision was made in response to falling government subsidies for solar energy and a collapse in the price of solar equipment. But to DESERTEC’S critics, Siemens’ exit also adds to doubts about the plan, which is expected to cost hundreds of billions of dollars. “DESERTEC is an ambitious attempt to do every­thing at once,” says Jenny Chase, an analyst at Bloomberg New Energy Finance in Zurich, Switzerland. “I think it’s something that will be achieved organically, bit by bit, which will probably be cheaper, easier and achieve the same results.” [emphasis mine]

The cited reasons suggest some fundamental problems with this particular project. That Siemens is abandoning the solar energy entirely, citing the lose of government subsidies as one reason, also suggests there is something fundamental wrong with the industry itself.

Then again, it could be just like the new commercial space industry. Some companies are willing to take the risks to make the money even without subsidies, while others are not.

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3 comments

  • Patrick Ritchie

    One important note. The DESERTEC project is looking at building a Solar Thermal plant. The dropping cost of a competing product: photovoltaics, is causing havoc for backers of solar thermal.

  • wade

    i think, based on a loose watch of Things going on, that this is One of the Three money laundering facets of the current administration that is publicly masqueraded as an Energy Solution for a false hope to the helpless individuals that Don’t Have a Clue as to what Regulation actually involves themselves.

  • wade

    and in light of the Base of the Matter, i have questioned the money making and Rights to, to a Natural physical component of the properties of our planet ,as well as All other worlds, to be Owned at All by a so-called Energy Company of Any name.

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