As learned from EnergyTrend, on January 24, Trina Solar issued an announcement on the modification of its fundraising investment projects.
According to the announcement, to adapt to changes in the photovoltaic market and optimize resource allocation, Trina Solar declared that it would adjust the use of part of the funds raised from the issuance of convertible corporate bonds in 2023. A portion of the funds originally earmarked for wafer production expansion will be redirected to the distributed power plant sector, which currently boasts greater market potential.
Specifically, Phase I of the original "Annual Output 35GW Czochralski Monocrystalline Silicon Project", with a capacity of 20GW, has already been put into production. Trina Solar has decided not to proceed with Phase II of the project, which was designed to have a capacity of 15GW. The remaining raised funds, totaling RMB 1.7 billion (including interest income and financial management gains), will be allocated to new projects.
It was disclosed that the new project, namely the "Construction of Distributed Smart PV Power Plants", has a total investment of RMB 3.4 billion and a planned installed capacity of approximately 245MW. The construction will be located in regions with favorable PV power absorption conditions such as Jiangsu, Anhui, Zhejiang and Guangdong provinces, with a construction period of one year. It is expected to be completed and connected to the grid for operation by the end of 2026.
Based on calculations, after the stable operation of the new project, the annual revenue is projected to reach about RMB 284 million, with an estimated net profit of RMB 94.9087 million, which will provide a stable source of profits and cash flow for the company's long-term development.
Trina Solar stated that the construction of photovoltaic power plants will create stable internal demand for the digestion of component production capacity, reducing the impact of market fluctuations on its main business. Meanwhile, relying on its technical accumulation in the field of component manufacturing, Trina Solar can ensure the component supply quality and cost advantages of the power plant projects.
More crucially, through this layout, Trina Solar will form a virtuous closed-loop technological innovation ecosystem featuring "component manufacturing - power plant construction - operational feedback". The practical scenario data and experience accumulated during power plant construction and operation will inversely empower the technological improvement and performance optimization of component products, driving the component products to better meet the needs of distributed application scenarios, and building an industrial ecology where technological innovation and market application promote each other.
Source：EnergyTrend