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Trina Solar (TSL) to Sell 10.6-MW Power Plant to UK Firm - Analyst Blog

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Trina Solar Limited ( TSL ) has announced that it will sell its 10.6-megawatt (MW) photovoltaic (PV) power plant to funds managed by Foresight Group LLP (Foresight). Located at Trehawke, this utility-scale solar power plant is the first of two UK projects under Trina Solar that were connected to the grid during the first quarter of 2014.

Foresight Group is an independent infrastructure and private equity investment manager. It operates over 30 PV plants in the UK, the U.S., Italy and Spain, and has offices in the UK, the U.S. and Italy.

Trina Solar uses 41,404 units of its TSM-255-PC05A modules at the Trehawke power plant. The facility has an electricity generation capacity of 10,300 megawatt hour (MWh) annually.

On Sep 30, 2014, both companies inked a share purchase agreement related to the latest transaction. Trina Solar is expected to start accumulating revenue from this deal in the third quarter of 2014.

At present, the UK solar market is gradually improving, given the growing awareness of the benefits of solar energy on the environment. In the future, the UK is expected to act as a prominent solar market along with its peers, including Germany, France, Italy and the Netherlands. As per an NPD Solarbuzz report, the solar PV industry is likely to exceed 50 gigawatts (GW) by 2014, primarily due to higher demand in the UK and Japan.

To tap rising opportunities for solar products and services, Trina Solar is currently strengthening its operations in the UK. In Aug 2014, the company acquired a 49.9-MW utility-scale ground-mounted power project from Good Energy Group PLC.

Currently, Trina Solar is constructing an additional 49.9-MW project in the UK and expects it to complete in the first quarter of 2015. These initiatives will allow the company to meet increasing customer demand in the future.

Trina Solar's peers, ReneSola Ltd. ( SOL ) and Enphase Energy, Inc. ( ENPH ), are also active on expanding their operations in the UK. In Sep 2014, ReneSola stated that it will construct a 13-MW solar project at Dorset in England. In another transaction, solar product manufacturer, Enphase Energy, signed a partnership agreement with Saving Energy Ltd. to supply solar power to the residents of the Aging Miners project in the UK.

Trina Solar's efforts to expand operations in the emerging solar markets besides strengthening its presence in China and the U.S. will enable it to diversify its cash inflows.

Trina Solar currently holds a Zacks Rank #3 (Hold). However, another better-ranked stock in the sector is Canadian Solar Inc. ( CSIQ ), carrying a Zacks Rank #1 (Strong Buy).

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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.

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