Siemens is set to close its Israeli solar power division, having failed to find a buyer.

It only bought Solel Solar Systems in 2009 but has lost close to €1bn. The closure will affect 280 jobs.

The company will still be involved in other renewable sources of energy such as wind farms but said the ‘current and future market for solar receivers remains low’.

Spokesman Torsten Wolf said: “It has become evident that, due to the increasingly difficult market situation, we will not find an investor for this business”.

It is thought that Siemens will complete and ongoing work and honour any warranty obligations.