JinkoSolar Holding Co., Ltd.
) has entered into an agreement with 8i S.A. (8i) to deliver 305
Poly 72 high-efficiency photovoltaic (PV) solar modules, worth 40
megawatts (MW), to the latter for a Chilean solar power project.
Per the contract, the delivery will commence in the fourth quarter
8i, a solar development firm, will utilize the solar modules at a
solar power project in the Valparaiso region of Puchuncavi, Chile.
The project is scheduled to be completed in Jul 2015. The firm will
act as the developer as well as engineering, procurement and
construction services provider for the project. Post completion, 8i
will also be the owner of the project.
Demand for solar products and allied services are gradually
increasing in Latin America given the growing awareness about it
advantages. As per a Greenwood Energy report, the Latin American
solar market is expected to add 700 MW of new capacity in 2014. In
particular, Brazil, Chile, Mexico, Panama, Uruguay and Costa Rica
figure significantly among the budding solar markets of the region.
Historically, the Latin Americans worship sun as their god and we
notice the symbol of the "Sun" in many of these countries' national
flags. We have heard several stories about solar eclipse and
sun-related facts of the Inca civilization. Currently, the South
Americans are properly utilizing the abundance of sunlight and
converting it as a major source of energy. This will help to reduce
dependence on fossil-fuels for electricity generation, thereby
minimizing carbon emissions.
According to a media report, investments in solar projects in Chile
stood at $1.3 billion in 2013. Chile will likely play an important
role in the Latin American solar market backed by its positional
advantage. The nation has a strong potential project lineup of 11
gigawatts. The Atacama Desert region in Chile has one of the
highest irradiation levels in the universe. Higher power demand for
mining operations plays a vital role in driving solar demand.
JinkoSolar has a significant presence in Chile and continues to
strengthen its footprint in the region. On May 2, 2014, the company
signed an agreement to offer 100 MW of PV modules for two solar
projects in Chile. JinkoSolar's peer Yingli Green Energy Holding
Company Limited (
) is also active in Latin America. Recently, Yingli Green Energy
opened an office in Santiago, Chile to tap the rising Chilean solar
JinkoSolar's current strategy of focusing more on the new emerging
markets, including Chile and South Africa, will help it to expand
its revenue stream and reduce dependence on the U.S. as well as
JinkoSolar currently holds a Zacks Rank #3 (Hold). However, some
better-ranked stocks in the industry include ReneSola Ltd. (
) and Canadian Solar Inc. (
). ReneSola holds a Zacks Rank #1 (Strong Buy) while Canadian Solar
carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
CANADIAN SOLAR (CSIQ): Free Stock Analysis
RENESOLA LT-ADR (SOL): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
YINGLI GREEN EN (YGE): Free Stock Analysis
To read this article on Zacks.com click here.