JinkoSolar Holding Co., Ltd. (JKS - Free Report) will supply one-third of the solar modules required by State Grid Corporation of China ("SGCC"), for a power project in Hebei Province. Moreover, the Chinese government’s announcement to provide low-cost financing for new solar projects has propelled the company’ share price by 0.22% to $22.55 on Monday.
The power project requires 60 megawatt (MW) of modules and the company will deliver highly-efficient solar modules with an electric generation capacity of 20 megawatt (MW) in the fourth quarter of 2013. SGCC is the largest electric power transmission and distribution company in the world. It transmits and distributes power in China.
Located in Zhangbei County, Hebei Province, this power project covers approximately 200 square Kms. With a total investment of approximately RMB 12 billion, the project includes 500 MW of wind power, 100 MW of solar power, and 110 MW of power storage system. Thus, this large and comprehensive facility will integrate wind and solar power generation as well as power storage and smart grid technology, supporting China's national renewable energy development strategy.
JinkoSolar is busy expanding its footprint in the Asian, African and European markets to offset the overall slowdown in U.S. orders. The company has successfully won numerous orders from these regions. Recently, the company entered into an agreement with Spain-based renewable energy developer Acciona to deliver a total of 274 megawatt-peak (MWp) solar PV modules.
Recently, Chinese solar stocks like Trina Solar Limited and Yingli Green Energy Holding Co. Ltd. (YGE - Free Report) have seen their share prices rise as the Chinese government is now offering local solar manufacturers a 50% value-added tax rebate for sales taking place from Oct 2013 through Dec 2015.
Post announcement, JinkoSolar has made a 52-week high of $23.40 on Sep 30, 2013. A steady flow of contracts for its highly efficient solar products and issuance of 4.37 million new American Depositary Shares at $16.25 also acted as drivers.
The Chinese solar players are now at par with their international peers, like SunPower Corp. (SPWR - Free Report) , in terms of technological upgrades and manufacturing efficiencies.
While SunPower Corp. presently has a short-term Zacks Rank #1 (Strong Buy), JinkoSolar and Trina Solar have a short-term Zacks Rank #2 (Buy).