Trina Solar has entered into a partnership with two strategic investors to set up 1 GW solar power capacity across China.
According to an agreement, private equity firm Jiuzhou Investment and PingAn Trust, part of the PingAn Insurance group, will invest in solar power projects to be developed by Trina Solar.
The investment would initially be in the form of debt financing, but the investors would have the option to convert that into equity stakes in the projects.
The agreement can be seen as a boost to Trina’s plan to aggressively expand its footprint in solar power project development.
The company hopes to generate at least 30% of its annual revenues from project development. The plan seems well suited for the current market conditions which discourage Chinese companies to export modules to markets like the US and Europe. The company is also looking to step up acquisitions within China as well as globally.
Trina Solar has been doing well over the last few quarters, registering gradual increase in both revenue and module shipment. Between Q1 and Q3 2014 the company registered an increase of over 38% in revenue. It reported a revenue of $617 million in the third quarter of 2014, highest in the 5 quarters. Module shipment crossed the 1 GW mark in a quarter for the first time in Q3 2014. The company expects to ship over 1 GW modules again in Q4.
China, on the other hand, is the largest solar power market in the world and hopes to reach 100 GW by 2020. A market of such a size allows several large players to coexist and grow at a healthy rate. The highly ambitious targets would certainly allow large companies to expand their base further. The impending launch of the Chinese carbon market is also likely to significantly increase the demand for solar power, especially amongst industries.
Image Credit: Trina Solar
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