JinkoSolar Holding Co., Ltd.JKS announced that the company has inked a deal with POWERCHINA Huadong Engineering Corporation Limited to supply 240 megawatt (MW) of solar modules for developing the 420 MW Dau Tieng solar plant in Vietnam. The company will be providing the solar modules for second-phase development of the largest solar power project in Southeast Asia.
POWERCHINA Huadong is responsible for Engineering, Procurement and Construction (EPC) of the Dau Tieng solar project, located in Tay Ninh, southwest Vietnam. This largest Southeast Asian solar plant is being developed by Vietnam's Xuan Cau Co Ltd and Thailand's B.Grimm Power Public Co Ltd.
Projects in Pipeline
China-based JinkoSolar offers solar modules, solar system integration services and photovoltaic products to theglobal market Last month, the company announced that it will supply 86-megawatt (MW) of solar modules to Colombia's largest Photovoltaic (PV) Plant. Per the terms of the deal, JinkoSolar's 250,000 Monocrystalline Standard Modules with 345 Watt-1500 V capacity will generate 176 Gigawatt hours (GWh) of clean energy on average per year.
Also, the company has singed a few agreements with international companies to supply solar modules. In June, JinkoSolar's U.S.-based subsidiary entered into a three-year agreement with sPower - an affiliate of AES Corp AES - to supply 13 gigawatt (GW) high-efficiency solar modules.
In Jun, the company has supplied 275.4 Megawatt-dc (MWdc) high-efficiency solar modules to Green Light Contractors Pty Ltd. for the Bungala solar project in Australia. These contracts along with the latest one indicates the growing popularity and acceptance of JinkoSolar's modules in the global solar market. Also, in Mar, JinkoSolar signed a contract to provide 2.75 GW of modules to NextEra Energy NEE .
Importance of Renewable
Renewable Energy source has been gaining momentum globally. Wind and solar power have been two of the fastest growing sources of electricity generation on the international front over the past decade. In 2017, global installed wind capacity grew by nearly 11%, thus bringing the global total to 540 GW. Projections by the International Energy Agency indicate that renewable energy will continue to grow at a faster rate than fossil fuels over the next two decades.
Per U.S. Energy Information Administration report, during the 2014-2017 time period, renewable sources accounted for more than 50% of the total utility scale power plant added in the United States. In 2018, 9 GW of new solar and wind assets will be installed, reflecting the rising popularity and importance of renewable resources in the United States.
Global Solar Power Outlook
With the United States having walked out of the Paris accord last year and President Donald Trump directing his focus toward flourishing the coal industry, the utility operators have shifted their target to avail of opportunities in the Asia-Pacific region. Countries like China, Japan and India are a huge market for solar power expansion, which would emerge as a key growth-driver for utility providers.
Per International Energy Agency (IEA), the total power generation from solar PV is estimated to be around 416 terawatt hours (TWh), representing around 2% of total world electricity generation. The IEA estimates electricity generation from solar PV to grow from 416 TWh in 2017 to more than 2,700 TWh in 2030. Also, the International Solar Alliance (ISA) plans to channelize more than $1,000 billion of investment by 2030 in deploying solar energy at affordable costs.
Price Movement
In the past month, shares of JinkoSolar have lost 2.4% compared with its industry 's decline of 0.1%.
Zacks Rank & Other Key Picks
JinkoSolar currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here . Some other top-ranked stocks from the Zacks Oil & Energy Sector are as follows:
Alliance Resource Partners, L.P. ARLP sports a Zacks Rank #1. It reported second-quarter 2018 adjusted earnings of 64 cents per share, surpassing the Zacks Consensus Estimate of 63 cents by 1.6%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
