Credit: Shutterstock photoPer a media report, Trina Solar LimitedTSL is going to invest $500 million for building a 2-gigawatt (GW) solar module plant in India in partnership with Welspun Energy Ltd. The plant's output will be exported to the U.S. and European markets, which have imposed punitive trade duties on solar shipments from China.
The facility will be built in either Gujarat or Andhra Pradesh. Construction of the plant will be completed in two phases over a period of about 18 months.
Destination India
India is currently attracting global renewable energy companies ever since Prime Minister Narendra Modi set a national target of installing 100 GW of solar energy by 2022, which is a five-fold increase from the present installed capacity.
Trina Solar expects demand for solar power in India to reach 600 megawatts (MW) this year. The company expects India to become its third-largest market by next year with the potential to become the largest after China, going forward in the future.
Last month, JA Solar Holdings Co., Ltd. JASO entered a joint -venture agreement with India-based Essel Group for building a solar cells and modules plant with an annual production capacity of 500 MW. The joint venture will invest around $150 million in the plant.
Other Expansion Plans
Trina Solar allocated $370 million for capital expenditure in 2015. The company plans to expand ingot, wafer, cell and module capacity to 2,900MW, 2,300MW, 4,100MW and 4,400MW, respectively by the end of the year.
Similar to other Chinese companies, Trina Solar is targeting Southeast Asian countries for expansion plans due to their low labor costs and proximity to China. Last month, the company announced plans to invest $160 million for building a solar cell and module assembly facility in Rayong, Thailand, also intended to serve the U.S. market.
The Thai plant will have an initial solar cell nameplate capacity of 700MW and module assembly capacity of 500MW. Production from the plant is expected to commence in late 2015 or early 2016.
The State Council of China has set an ambitious target for the development of photovoltaic (PV) power generation by 2020. China aims to generate 100 GW of solar power by 2020, which translates to the addition of nearly 11 GW of PV power generation every year until 2020. As a result, Chinese solar cell producers like Trina Solar, JA Solar, Yingli Green Energy Holding Company Limited YGE and JinkoSolar Holding Co., Ltd. JKS will gain immensely from the solar boom.
Currently, Trina Solar carries a Zacks Rank #3 (Hold).
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JA SOLAR HOLDGS (JASO): Free Stock Analysis Report
TRINA SOLAR LTD (TSL): Free Stock Analysis Report
JINKOSOLAR HLDG (JKS): Free Stock Analysis Report
YINGLI GREEN EN (YGE): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
