Siemens bought a majority stake in the company from London-based investment firm Ecofin and another major shareholder.

“With the acquisition of Solel, Siemens can now strengthen its market position in the promising business of solar thermal power plants," says Siemens president and chief executive Peter Löscher.

Solel Solar Systems is one of the world’s two leading suppliers of solar receivers, which are key components of parabolic trough power plants used for concentrated solar power (CSP) production. It is also a leader in the planning and construction of solar fields. Solel had revenues of $90m in the first six months of its current fiscal year.

Siemens expects that the closing of the acquisition will take place before the end of the year, subject to approval by the responsible authorities

Solel has been present on the Spanish market since 2006, supplying key components for 15 solar thermal power plants with a combined capacity of 750 megawatts. The company is also active in the US market.

Siemens Renewable Energy Division CEO René Umlauft, said, “We are the market leader in steam turbines for solar thermal power plants and, with the power block, we can offer a key part for solar power plants – the part that is responsible for power generation. Solel boasts high-efficiency receiver technology and comprehensive expertise in the engineering and construction of solar fields.”

Umlauft added, “In the future, we’ll be able to offer the key components for the construction of parabolic trough power plants from a single source and to further enhance the efficiency of these plants”.

Siemens predicts that the market for solar thermal power plants will show annual double-digit growth rates up till 2020 and attain a volume of over €20 billion, with the main growth regions the U.S., South Africa, Australia, Spain, India, North Africa and the Middle East.