Solar photovoltaic ("PV") module manufacturer Trina Solar Limited (TSL) received a contract to supply 25 megawatt (MW) of modules for a solar project in Thailand. These modules will be used in Phase III of the 75 MW Bangchak Solar Energy Project.
Trina Solar expects to ship the modules in late December. The solar project is owned by Bangchak Solar Energy (Nakhonratchasima) Co., Ltd. and Bangchak Solar Energy (Chaiyaphum 1) Co., Ltd., the subsidiaries of Bangchak Solar Energy co., Ltd. (BSE).
In the wake of environmental concerns, alternate energy sources are gradually gaining prominence worldwide. The universal availability of sun rays, decreasing cost of PV units and a higher conversion rate make solar power technology one of the most popular alternate energy resources.
Like most emerging markets, Thailand also has plans to develop its solar power generation to meet the increasing appetite for electricity. Thailand's National Energy Policy Commission targets to deliver 1,000 MW of solar power by 2014 and 2,000 MW of solar power through utility projects by 2021.
Wide uptake and development of the solar market in South East Asia is definitely good news for solar cell manufacturers like Trina Solar. The quality of its modules, which are suitable for Thailand's hot and humid climate, could open up new shipment opportunities for this company.
Chinese solar cell producers are looking for new markets due to the increasing competitiveness in the North American solar markets. The Japanese government has set a target of producing 28 gigawatts of solar power by 2020 to replace its idled nuclear power. So, apart from Thailand, the Chinese producers can also look towards the Japanese market to increase sales volume.
Trina Solar currently carries a Zacks Rank #2 (Buy). Other players in the solar cell industry, which look attractive at current levels, include FirstSolar Inc. (FSLR), Enphase Energy, Inc. (ENPH) and JinkoSolar Holding Co., Ltd. (JKS). JinkoSolar carries a Zacks Rank #1 (Strong buy) while FirstSolar and Enphase Energy hold the same Zacks Rank as Trina Solar.