Siemens Energy is focusing on expanding its grid business over wind power and has planned to invest $1.6 billion (1.5 billion euros) over the next six years, according to a report by the Financial Times. As part of this six-year expansion plan, the company is looking to hire 10,000 new employees to support the growth.
Grid upgrades and expansion are crucial for governments focused on transitioning to cleaner energy sources. Electrification plays a key role in this transition, making grid expansion a significant task that requires both financial investment and a large workforce. Estimates suggest that more than $2.5 trillion will be needed for grid upgrades in the United States by 2035, while Europe is expected to invest around $73 billion (67 billion euros) annually between 2025 and 2040 to upgrade its grids.
Siemens Energy is eyeing 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Tim Holt, highlighted the growing demand for electricity, the need for expanding wind and solar capacities, and the outdated infrastructure that requires upgrades.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.