Bosch cites tough economic outlook, to quit renewable power generation initiative
Germany-based auto parts supplier Bosch has decided to quit the multi-national Desertec Industrial Initiative to construct giant solar power stations in North Africa and the Middle East.
Bosch is the second German business to retract from the initiative following the exit of Siemens in October 2012.
The company cited the current economic stress as the reason for its decision to refrain from the renewal of its involvement at the end of the year.
A company spokeswoman said, "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."
Launched in 2009 some of the other companies involved in the project include Munich Re, Deutsche Bank alongside E.ON and RWE.
Companies from France, Italy and Spain had acquired stakes in the project that outlay initial investment of €400bn.
The project is seeking to generate 15% of the total Europe's electricity consumption with solar and wind projects located in North Africa and Middle East expected to come up over the next 40 years.