Trina Solar Expansion Strategy: EPC-Plus-Financing Or Buying Out Struggling Projects

Trina Solar is keen to expand its project development businesses in India by either partnering with large developers to offer EPC-plus-financing or by buying out projects struggling for finance.

Trina’s strategy, across Asia and Australia, is to develop a project of global standards and then sell these de-risked cash flow-generating projects to pure financial investors.

So far, Trina has evaluated four to five such projects in India and is currently at an advanced stage of evaluating assets of 50-150 MW size in Gujarat and Odisha.

The target is to do 100-150 MW projects in the first year and then scale up based on the experience with these projects.

For Trina, this is a win-win situation. As a solar module manufacturer, Trina is currently among the top five suppliers to Indian power developers. While the company will not participate in the reverse auction process to bid for new projects, it will help under-construction projects reach completion.

The projects will be completed with Trina modules and the Chinese firm will also provide competitive long-term project financing to the developer.

Once the project is operational, if the developer can’t provide an exit to Trina either through alternative financing or by sale of the project, Trina will exercise its right to take over the asset.

Reference- livemint, Economic Times