Trony sees light times ahead in Africa

Trony Solar Holdings, the world's fourth-largest thin-film solar-panel maker, is discussing making direct panel sales to schools and hospitals in emerging markets not linked to power grids, to tackle a market not covered by its distributors.

The Shenzhen-based company is talking to international organisations and financial institutions such as the World Bank to tap the market segment that its resellers are not reaching because of their lack of brand recognition and financial resources, chairman Li Yi said in an interview.

The World Bank and the Global Environment Fund provide most of the funding for solar energy projects in Africa.

'If you look at a satellite night shot of the earth, you'll notice that most of Africa is dark,' said Li. 'Hospitals and schools in the remote off-grid regions that use diesel power generators would benefit from solar power to cut costs and enhance power security.'

Diesel prices are rising, following sharp increases of crude oil prices amid widespread protests and political instability in the major oil-producing regions of the Middle East and North Africa, making solar power more viable. However, while a prolonged high oil price would bode well for Trony's business case in these areas, political instability could make sales more challenging and risky.

Li said the company would adjust its sales strategy according to economic and social development in the locations. Trony already derives about 60 per cent of its sales from emerging markets.

According to the International Energy Agency, 1.5 billion people in the world have no access to electricity and 85 per cent of them live in economically undeveloped regions.