Bosch dumps Desertec project

A Bosch spokesman said the firm would not be renewing its involvement in the Desertec project when it ends at the end of the year, citing financial difficulties.

"Due to a more difficult economic situation, we have frozen all our engagements and have decided not to continue our investment in Desertec next year," said the spokesman.

The Desertec project aims to generate about 15% of Europe's electricity within the next 40 years using solar and wind energy .

The project was launched in 2009 by several German companies including Munich Re, Deutsche Bank and energy giants E.ON and RWE. French, Italian and Spanish companies also took stakes in the project that has an initial investment of €400bn.

However,Desertec appears to have run into difficulties with risks and costs judged too high and an uncertain political situation following the Arab Spring.

German engineering giant Siemens pulled out of the project in October after announcing it was quitting its activities in solar power.

Source: AFP via I-Net Bridge