* Expectations for solar were not met
* Renewable business to focus on wind, hydro
* Sale is part of new savings programme
* Solel ex-CEO says considering buying back business
FRANKFURT, Oct 22 (Reuters) – German engineering group Siemens is pulling the plug on its loss-making solar energy business and is already talking to potential buyers as it tries to close the profitability gap with its peers.
Demand for solar power has been hurt by top consumer Europe cutting back subsidies for green energy and the euro zone debt crisis crippling the finances of sunny countries such as Greece and Spain.
“Due to the changed framework conditions, lower growth and strong price pressure in the solar markets, the company’s expectations for its solar energy activities have not been met,” Siemens said on Monday.