Trina Solar Hunts For Affordable Acquisitions
Everyone knows the price of oil has dropped recently, and it is only reasonable that many people are happy about that. Some have speculated that the surging interest in solar and wind power will wane, but this notion seems a little dubious because renewable energy growth has been a steady, long-term trend. Oil prices have their own cycle and tend to be more episodic. Furthermore, renewable energy growth has de-linked from oil price changes.
Perceptions do influence the stock market, however, so now might be a good time for investing in some solar stocks… or for a very large solar company like Trina Solar to shop around for some solar power acquisitions.
“Acquisition is a good way to expand quickly at low costs. We are looking at various opportunities both domestically and abroad, including ones in North America,” explained Trina Solar CEO Gao Jifan.
Of course, this perspective makes sense… who would not pluck low-hanging ripe fruit at artificially low costs? Gao Jifan said he doesn’t see a rational connection between the oil price drop and slumping solar company shares. Who does?
Trina Solar could simply acquire its way to a better strategic position, rather than building up entirely on its own. Trina is one of the largest solar panel manufacturers in the world and grew panel production 35% last year. In fact, it may well be the largest, as some have estimated that it passed up Yingli Solar in 2014.
Though it may seem that, when oil prices are down, some people will forget about solar power, this is mostly not true. The motivation for buying and installing solar power is not only about the lowest cost. Factors such as protecting the environment and reducing air pollution to improve human health are in play. Also, the amount of oil that is spilled in the environment due to the huge spills is not something most people are fond of. The millions of small oil spills don’t get any press but they add up to enormous damage as well. And there are also the “oil wars” and desire for energy independence.
Then there is the big daddy: growing awareness of human-made climate change.
So, oil and solar power are not forms of energy that can only be compared on a monetary level. Their costs are only a portion of the economic, energy, and environmental picture. It seems absurd that everyone knows about the drop in oil prices, but relatively few may be aware of how much the cost of solar has fallen.
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No Problem! – Six Months with the Barefoot
Grandmamas is about the rural solar electrification project run by the
Barefoot College in the village of Tilonia in the state of Rajasthan,
India, where numerous illiterate rural women from all over the world,
particularly Africa, are being trained as solar engineers. The
solar-electrification project symbolizes hope, as a simple idea
originating from a little-known village in India has the potential to
impact global communities.
Watch it free online here: cutv (DOT) ws/play/52730
The US solar market is just about to really start growing, those nasty soft cost will be resolved. So it would not be strange to see some of those with large PV plants in China (build with money from NY stock exchange) building a plant in the US to get around the current trade war and drop shipping costs. Labor is no longer a big factor in making PV panels. And if you pick up your entry at a really cheap price so much the better.
Oil will remain too expensive for electricity generation even if it drops to 10 dollars per barrel. Solar is taking down diesel generation now even as it competes directly with coal and natural gas. Wind has been at this level since the late 2000s. In addition, the cost of fossil fuel generation is going up as the cost of renewable generation keeps falling.
There’s really no comparison. Renewables are first rate energy sources whose critical advantages include free fuel source, technology and economies of scale reducing cost and increasing EROEI ratios, and the fact that they do not contribute to human caused climate change.