Trina Solar Ltd. will invest in a $500 million plant with India's Welspun Energy Ltd. seeks to circumvent U.S. and European Union sanctions on solar shipments from China.
The 2GW facility will be in either the western state of Gujarat or southern state of Andhra Pradesh, Zhiguo Zhu, senior vice president of Trina Solar, said in a phone interview. Construction of the plant, planned in two phases, will take about 18 months, Zhiguo said. "We'll use Indian products to export to the U.S. or even Europe," Zhiguo said.
"Driven by the policy barriers, Chinese companies are setting up capacities globally. Southeast Asia is attracting the most investors, with advantages of low labor costs, local policy incentives and proximity to China, the source of the most raw materials", according to Bloomberg New Energy Finance.
Trina expects demand of as much as 600MW in India this year, the executive said. "Next year, India will become our third-largest market," Zhiguo said. "In future, it could become our biggest after China."
"India could become the fourth-largest market next year although climbing further up in rankings will be an uphill task given the current progress," BNEF solar analyst Bharat Bhushan Agrawal said.