Chinese solar photovoltaic (PV) power product manufacturer JinkoSolar Holding Co., Ltd. (JKS - Snapshot Report) has entered into an agreement with Acciona, S.A. to deliver a total of 274 megawatt-peak (MWp) solar PV modules. Acciona will install these modules to its two projects in South Africa and Australia.
Acciona, S.A., a Spanish organization, is engaged in construction and management of renewable energy, infrastructure, water and other services.
Per the agreement, JinkoSolar will provide 94MWp of high-efficiency solar modules to Oakleaf Investment Holdings 86 (Proprietary) Limited, a joint-venture of ACCIONA and its South African local partner. The delivery will start from Nov 2013 and expected to be completed by Sep 2014. Oakleaf will use roughly 319,600 JinkoSolar PV modules for its solar farm in Northern Cape Province, South Africa. These modules can generate roughly 206 Gigawatt-hour (GWh) of electricity annually and avoid emission of carbon dioxide by 198,000 metric tons per year.
In another contact, JinkoSolar will provide 24.07 MWp of solar modules to Acciona, S.A.’s subsidiary Acciona Energy Oceania. The delivery will start from Oct 2013 and expected to be completed by Dec 2013. Acciona Energy Oceania will install nearly 81,600 JinkoSolar PV modules at the Royalla PV Plant in the ACT territory of Australia. These modules can provide power to 4,500 houses.
In addition, JinkoSolar will subsequently deliver 156MWp PV modules to Acciona. It is subject to definitive supply agreements.
Previously, the Chinese solar product manufacturers generated major portion of their revenues from the U.S. market. Currently, the U.S. government is encouraging domestic players to promote their solar products in the U.S. market and implemented several clauses to control the import volumes from China. These initiatives have made the solar market more competitive for the Chinese solar power product manufacturers operating in North America.
U.S. solar markets are gradually becoming less lucrative for the Chinese solar module manufacturers. Like its peers Canadian Solar Inc. (CSIQ - Analyst Report), LDK Solar Co. Ltd. and ReneSola Ltd. (SOL - Analyst Report), JinkoSolar is currently expanding its footprint in the emerging markets of Africa, Asia and Middle East.
Recently, JinkoSolar supplied high-efficient solar PV modules for the first private solar park in India and another project in South Africa. We believe strengthening of overseas footprint will enable the company to offset stiff competition in the U.S. market.
Shangrao, China-based JinkoSolar engages in designing, producing and marketing PV products in the Chinese and overseas markets. The company currently has a Zacks Rank #2 (Buy).