Trina Solar has signed a framework investment agreement with PingAn Trust and Jiangsu Jiuzhou Investment to jointly develop PV plants in China.
According to the agreement, the JV venture will develop a total PV solar capacity of 500 MW-1,000 MW over the next three years in the country.
The Investors can enter into convertible loan arrangements with Trina Solar and also can convert the loans into minority stake in the project companies at pre-determined time.
Besides, the investors are also entitled to participate in the capital operation of the holding vehicle in the future.
To strengthen its efforts in China, the Company established Jiangsu Trina Solar Power Investment & Development under the above-mentioned holding vehicle at the end of 2014.
In addition, the Investors will provide bridge loans after completing due diligence on the Projects in order to meet their funding needs during the construction phase.
The convertible loans and the bridge loans will not prevent the project companies from applying for long-term loans from other financial institutions.
The Company and Investors are actively evaluating the portfolio of projects that need to be financed.
In recent years, China’s demand for new energy has been growing quickly. China’s photovoltaic power installation capacity is expected to reach over 100 GW by 2020.
In 2015, Trina Solar plans to use this strategic collaboration as an opportunity to expand its position in China’s PV market.
In another development, Trina Solar has been selected by renewable energy firm Gestamp Solar to supply modules for a 42.5 MW PV plant located in Marcovia, which is in the Choluteca region of the Republic of Honduras, Central America.
Trina Solar is the world’s largest manufacturer of solar modules.
Sabeena Wahid
editor@greentechlead.com