Siemens raises stake in Gamesa Renewable for $1.2 bln.

- Company now owns majority 67.1% stake to raise scale in wind energy and fight climate change

Siemens has increased its stake in Siemens Gamesa Renewable Energy (SGRE) for $1.2 billion and changed its name to Siemens Energy, data analytics and consulting company GlobalData said in a statement on Thursday.

The German company has bought out Spanish multinational electric utility firm Iberdrola's 8.1% stake in SGRE for a total cost of €1.1 billion ($1.2 billion), GlobalData confirmed.

Siemens will transfer its majority stake in SGRE to its gas and power business in Siemens Energy. While Siemens now owns a majority 67.1% stake in SGRE, the remaining 32.9% belongs to Gamesa.

The transaction will help Siemens increase its scale in wind energy and fight climate change.

'Siemens Energy will have the scale needed to succeed in terms of innovation, resources and geographical reach in key renewables markets such as the wind power sector which will help to shape the energy transition,' Bhavana Sri Pullagura, a power analyst at GlobalData, said in the statement.

'Siemens targets to co-fire its gas turbines with 20% hydrogen in 2020 and 100% hydrogen by 2030 and its commitment towards the Paris climate targets is being hit by plunging demand as the global power sector looks to decarbonize its operations,' he added.

By Gokce Topbas, Ovunc Kutlu

Anadolu Agency

energy@aa.com.tr