JinkoSolar Holding Co., Ltd. (JKS - Free Report) has entered into an agreement with a well-recognized solar project developer (the "Developer"). Per the terms of the agreement, the company will supply high-efficiency solar panels totaling 115 megawatts (MW) for two projects in South Africa.
Both the projects will be developed, designed and built by the Developer. The first project will utilize 75 MW while the other project will use 40 MW of solar panels. According to the agreement, the Developer can also purchase additional solar panels from JinkoSolar for other global projects over a three-year period.
The abundance of solar energy, rapid economic growth and governmental support in South Africa make JinkoSolar panels an ideal product for the region. This is not the first time that JinkoSolar is working in the country. In Dec 2012, JinkoSolar entered into an agreement with WBHO-Building Energy (Pty) Ltd. to provide 81 MW of photovoltaic (PV) modules for the solar PV park project in Gamagara Local Municipality, Northern Cape Province, South Africa.
Meanwhile, South Africa has been investing heavily in clean energy to reduce carbon emissions and bolster electricity supply. The country has set a target of generating 42% of electricity from renewable energy by 2030. In Dec 2012, Suntech Power Holdings Co., Ltd. entered into an agreement to deliver 100 MW of solar panels for the two planned projects in South Africa undertaken by a syndicate steered by Mainstream Renewable Power.
JinkoSolar’s domestic market has bounced back after an economic slowdown in China. China is becoming a major and fast growing market for solar PV modules. Recently, JinkoSolar entered into an agreement with China Three Gorges New Energy Corp. to supply 600 MW of its high-efficiency solar panels. Moreover, like its peers, JA Solar Holdings Co., Ltd. (JASO - Free Report) and Yingli Green Energy Holding Co. Ltd. (YGE - Free Report) , JinkoSolar is trying to expand its market reach. In Oct 2012, the company announced that it has supplied 5.7 MW of PV modules for an 11.6 MW solar power station in Starkenberg, Thuringia, Germany.
However, these positives would be tempered by the stifling trade barriers adopted by the U.S. which include countervailing duties of 15.24% and anti-dumping duties of 25.96%. The company presently retains a short-term Zacks Rank #3 (Hold).
JinkoSolar is a leading solar PV power product manufacturer with production operations in Jiangxi and Zhejiang Provinces in China and sales and marketing offices in Shanghai, China, Munich, Germany, Bologna, Italy, Montpellier, France, Zug, Switzerland, San Francisco, the United States, Queensland, Australia, Ontario, Canada and Singapore.