Trina Solar wins SunEdison PV module supply deal

(Reuters) - China's Trina Solar Ltd said it will supply U.S. solar firm SunEdison with about 35 megawatts of photovoltaic modules over the rest of this year, pushing its shares up 5 percent to a 1-week high.

The modules, which will be sold by Trina Solar's U.S. unit, are expected to be used for projects in North America and Europe by SunEdison, which is a subsidiary of silicon maker MEMC Electronic Materials Inc.

Trina Solar had said in May it expected the United States to account for more of its global shipments in the second half as European governments cut back subsidies and as the U.S. market emerged as a leading growth area for the renewable power source.

Chinese solar companies like Trina Solar, JA Solar Holdings and Yingli Green are already setting the pace in the market helped by their low cost structures, and have been winning contracts despite subsidy cuts in key markets such as Germany and Italy.

Trina Solar said in June it signed an agreement with a unit of Edison International to supply 45 MW of photovoltaic modules.

Earlier on Wednesday, Suntech Power, the largest Chinese maker of photovoltaic equipment, posted a second-quarter loss after one-off charges, but raised its 2010 shipment forecast.

Shares of Trina Solar, valued at about $1.7 billion, have gained more than 10 percent in the last three months. The stock was up 4.6 percent at $23.46 on the New York Stock Exchange.

Trina Solar trades at close to 11 times forecast earnings, around a third of the sector average, according to Thomson Reuters data.

Shares in Suntech, which has a forward price/earnings ratio of around 16, gained 2.4 percent.

(Reporting by Krishna N. Das in Bangalore, Editing by Ian Geoghegan)