Solar module manufacturer, JinkoSolar Holding Co., Ltd. (NYSE:JKS) has entered into an agreement with Fuji Electric Co., Ltd., to supply photovoltaic (PV) modules. These modules will be installed in a solar plant in Tomakomai, on the southern Japanese island of Hokkaido.
Details of the Agreement
Per terms of the contract, JinkoSolar will supply its high efficiency solar modules worth 38.4 Megawatt (MW), in the period between July to November this year, to aid Fuji Electric‘s power plant project.
This power plant in Hokkaido includes a 10 Megawatt-hours (MWh) sophisticated energy storage system, and is expected to begin commercial operations from 2018.
This solar project is funded through Tokumei Kumiai investments by Japanese institutional investors, Aquila Capital from Germany and Green Power Development Corporation of Japan.
Recent Solar Projects
Being a prominent entity in the global solar industry, JinkoSolar’s solar modules are being supplied to a wide network of customers.
Last week, the company’s Japanese subsidiary – Jinko Japan – in a Cooperation Agreement with Quantum Power GK of Japan agreed to supply 275 Watt peak (Wp) modules worth more than 187 MW, for three projects of Quantum Power.
Earlier this month, the company announced that it has supplied 214 Kilowatts (KW) of high-efficiency PV modules to Morgenster Olive & Wine Estate in South Africa, for empowering sustainable farming.
In May, JinkoSolar signed a supply contract with Jing Bei New Energy, wherein the company agreed to provide 100 MW of its high-efficiency solar panels for solar fishery plants.
Our View
With the Trump administration recently having walked out of the Paris Agreement, other nations especially China and India, will gain increased opportunities in the leading clean energy space. This indicates that companies in the remaining 195 nations including Japan which still support the Paris Accord, will get a boost in the growing and competitive green economy.
Naturally solar module manufacturers like JinkoSolar will try to tap the unearthed opportunities in the solar power markets, outside the U.S. Notably, JinkoSolar already enjoys a widespread customer base across the non-U.S. nations like China, Japan, Chile, South Africa, India, Mexico, Brazil, Italy, Spain, France, Belgium, and other countries.
Interestingly, the Asiatic countries are emerging as a solar market with most potential of late. In fact, other companies in the solar industry are also expanding their footprints in the region. To this end, solar module manufacturer, Canadian Solar Inc. (NASDAQ:CSIQ) recently announced the divestment of 80% stake of its Pirapora II solar energy project to EDF (PA:EDF) EN do Brasil – the Brazilian subsidiary of EDF Energies Nouvelles. In order to support the local market, Canadian Solar will supply the modules from its 380 MWp modules factory in Brazil.
Moreover, NextEra Energy (NYSE:NEE)'s affiliate Florida Power & Light Company (NYSE:FPL) recently stated its plans on adding around 2,100 MW of new solar capacity across the state of Florida in the next seven years.
Another solar module provider JA Solar Holdings, Co., Ltd. (NASDAQ:JASO) announced last week that it has successfully provided modules for the world's largest floating solar power plant. The company confirmed supplying 40 MW floating photovoltaic (PV) solar system which has been installed in a former flooded coal mining region in Huainan City, Anhui province, China.
Coming back to JinkoSolar, being a vertically integrated manufacturer, the company has built a solar product value chain, with an integrated annual capacity of 5.0 Gigawatt (GW) for silicon ingots and wafers, 4.0 GW for solar cells, and 6.5 GW for solar modules, and enjoys a distinct advantage over peers. We believe, considering the abovementioned development, the recent deal with Fuji Electric will aid the company to expand its operations in the growing solar energy market.
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