JinkoSolar Announce Big Projects and Substantial Loans
China’s JinkoSolar Holding co., Ltd. is entering a module supply agreement for 115 MW of solar panels for two projects in South Africa. Both projects are part of the Phase 2 of the South African government’s Renewable Energy Independent Power Producer Procurement Program which aims to increase the amount of renewable energy in the country’s energy mix. The first project will consist of a total of 75 MW while the second project will consist of 40 MW.
While the developer of the projects is not specified, according to the terms and conditions of the supply agreement, they may purchase additional solar panels for other projects in a three year period. This week, JinkoSolar also announced that they have received funding to continue their plans to develop solar power projects in their home country of China.
JinkoSolar entered into the agreement with China Development Bank for a 15-year loan worth approximately $58 million (RMB360 million). The loan is backed by the main objective of building photovoltaic (PV) solar power plant projects to expand and strengthen the company’s Chinese operations.
China Development Bank continues to support its domestic solar power product manufacturers and service providers by paying out loans and offering financial assistances. In the last few months, the bank disbursed approximately $50.9 million (RMB320 million) and $69.8 million (RMB440 million) as loans to ReneSola Ltd. ( SOL ) and LDK Solar Co., Ltd. ( LDK ), respectively. U.S. solar markets are gradually becoming less profitable for the Chinese solar module manufacturers.
The U.S. Department of Commerce (DoC) implemented anti-dumping duties of effectively 25.96% and countervailing duties of 15.24%. The U.S. DoC rolled out these tariffs to tighten supply of the Chinese solar-products in the U.S. and simultaneously encourage local players to tap the growing renewable domestic market. These steps have made the North American solar power market increasingly competitive for the Chinese solar power product manufacturers.
Currently, most of the Chinese solar product manufacturers are busy searching new markets. Most of them, including JinkoSolar, intend to increase their presence in China and hit the domestic prospects due to higher demand of solar modules. The company has already delivered its first batch of the 100 kilowatt peak (kWp) rooftop solar PV power generation system to Eaton Electric Co., Ltd, a subsidiary of Eaton Corporation plc ( ETN ), in Shenzhen, China.
It is evident from JinkoSolar’s recent activities and transactions that it is in an expansion mode. Apart from increasing its domestic presence, the company continues to spread its operations in the Asian, European and African markets. A day earlier, the company inked an agreement with a solar project developer to provide high-efficiency solar panels, totaling 115 megawatts (MW), for two projects in South Africa. In Mar 2013, JinkoSolar opened a sales office in Tokyo, Japan to capitalize on the increasing opportunities of providing clean and sustainable energy solutions to the country.