JinkoSolar Holding Co., Ltd. (JKS) 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 of 2014.
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 (YGE) is also active in Latin America. Recently, Yingli Green Energy opened an office in Santiago, Chile to tap the rising Chilean solar demand.
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 Europe.
JinkoSolar currently holds a Zacks Rank #3 (Hold). However, some better-ranked stocks in the industry include ReneSola Ltd. (SOL) and Canadian Solar Inc. (CSIQ). ReneSola holds a Zacks Rank #1 (Strong Buy) while Canadian Solar carries a Zacks Rank #2 (Buy).
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