Siemens Energy is shifting its focus from wind power to expanding its grid business, as part of a six-year expansion plan that includes investing $1.6 billion (1.5 billion euros). The company plans to hire 10,000 new employees to support the growth, recognizing the crucial role grid upgrades and expansion play in transitioning to cleaner energy sources.
In recent years, governments worldwide have been increasingly focused on transitioning to cleaner energy sources such as wind and solar power. Electrification has played a key role in this transition, making grid expansion an essential task that requires both financial investment and a large workforce. In the United States alone, it is estimated that more than $2.5 trillion will be needed for grid upgrades by 2035. Similarly, Europe is expected to invest around $73 billion (67 billion euros) annually between 2025 and 2040 to upgrade its grids.
Siemens Energy is capitalizing on these opportunities by expanding its presence in both the U.S. and European grid upgrade markets. Tim Holt, head of Siemens Energy’s grid business, highlighted the growing demand for electricity, the need for expanding wind and solar capacities, and the outdated infrastructure that requires upgrades.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.
