JinkoSolar to Develop 500MW Solar Project in Lishui, China - Analyst Blog

JinkoSolar Holding Co., Ltd. ( JKS ) has plans to spend around $812 million or 5 billion yuan to develop a solar photovoltaic (PV) project in the Chinese city of Lishui, located in Zhejiang Province.

The company's affiliate Jinko Power has signed an agreement with the Lishui Economic Development Zone in the eastern Chinese province of Zhejiang. The project including both distributed and ground-mounted installations will be constructed over a five-year period.

The plant will have an annual installation target of 100 megawatt (MW), of which 60 MW will be distributed and 40 MW ground-mounted. The first phase of construction is slated to start in the second half of 2014. It will have an installation target of 50 MW that is to be completed by the end of this year. Upon completion, which is expected to be by 2018, this power plant will generate about 560 million kilowatt hour (kWh) of power per year.

This venture will not only boost the scale and scope of JinkoSolar's PV project pipeline but also make the environment cleaner and contribute to the local economy.

JinkoSolar's high-quality products at economical rates have lured customers from all over the world. In addition, the company's lofty backlog of domestic utility-scale projects along with a steady rebound in solar panel prices is expected to boost its margin.

The company's string of large-scale solar PV supply orders from countries like Australia, South Africa and the U.K., effective project execution skills as well as favorable renewable policy adoption by the Chinese government have elevated its position in the market. Last year, the Chinese government had announced new tariffs for large-scale solar power projects depending on the region in which these are located. In January this year, the installation target for solar power capacity was increased from 10 GW to 14 GW in 2014.

Furthermore, countries in the Middle East like Egypt and Saudi Arabia are intent on working with Chinese solar producers to augment their clean energy usage which might open a window for future business expansion.

Another Chinese solar power products manufacturer JA Solar Holdings Co., Ltd. ( JASO ) is also progressing well on its utility-scale solar projects. JA Solar too caters to a geographically diverse customer base, spread across Asia, Europe, Africa, and North and Latin America.

JinkoSolar currently holds a Zacks Rank #1 (Strong Buy). Other well-ranked stocks in the industry is Yingli Green Energy Holding Co. Ltd. ( YGE ) and Enphase Energy, Inc. ( ENPH ), both carrying a Zacks Rank #2 (Buy).

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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.

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