Chinese photovoltaic ("PV") module producer Trina Solar Limited TSL received a contract from ACME Cleantech Solutions Ltd. ("ACME") of India for supplying 48MW of solar modules. Per the agreement, Trina Solar will supply nearly 188,000 Honey modules TSM-PC05A during the first quarter of 2015.
The Honey modules will be installed on two ground-mounted solar power plants, which are expected to generate 81.6 GWh of power each year. These power plants will help to lower the carbon footprint of an energy hungry nation.
Trina Solar has been supplying solar modules to ACME since 2013 and, with this new agreement, the total supply of solar modules will reach 70MW.
India is developing at a rapid clip driving the demand for power. The Indian government has set a target of producing nearly 1,75,000MW of electricity through renewable sources by 2022, comprising 100,000 MW solar, 60,000 MW wind, 10,000 MW biomass and 5000 MW small hydro.
Since the major share of renewable energy is expected to come from solar, we expect India to soon become a lucrative solar module export market. India’s domestic solar module production is not large enough to meet the target set by its government. As a result, the country will have to depend on module imports to attain its renewable goals.
India is on the cusp of a renewable energy revolution with investments of more than $100 billion in the next seven years. We expect leading solar energy companies like First Solar Inc. FSLR, JA Solar Holdings Co. Ltd JASO and JinkoSolar Holdings Co Ltd. JKS among others to benefit from this emerging solar market.
Trina Solar Limited currently has a Zacks Rank #3 (Hold).
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