Siemens Energy is shifting its focus away from wind power and towards expanding its grid business. The company has planned to invest $1.6 billion (1.5 billion euros) over the next six years, as part of a six-year expansion plan. As part of this investment, Siemens Energy aims to hire 10,000 new employees to support the growth.
Governments around the world are increasingly focused on transitioning to cleaner energy sources, and grid upgrades and expansion are crucial for achieving this goal. Electrification plays a key role in this transition, making grid expansion a significant task that requires both financial investment and a large workforce. In the United States alone, estimates suggest that more than $2.5 trillion will be needed for grid upgrades by 2035. Europe is expected to invest around $73 billion (67 billion euros) annually between 2025 and 2040 to upgrade its grids.
Siemens Energy is well-positioned to take advantage of these opportunities in both the U.S. and European grid upgrade markets. The head of Siemens Energy’s grid business, Tim Holt, highlighted the growing demand for electricity, the need for expanding wind and solar capacities, and the outdated infrastructure that requires upgrades. This strategic shift comes after Siemens Energy faced challenges in its wind power business, which contributed to the company’s net loss of $5 billion in the 2023 fiscal year. Following a review of its wind power business, Siemens Energy expects a more manageable loss of $2.16 billion in the unit for the current year.
