JA Solar Holdings Co., Ltd. JASO has won a contract to supply solar modules for “Front Runner”, a national advanced photovoltaic (PV) technology demonstration project in Datong, China. Per the contract, JA solar will supply 420 megawatts (MW) of modules, including 150 MW of high-efficiency monocrystalline Percium modules. The first phase of the “Front Runner” project has a total installed capacity of 950 MW, of which 44% of the modules will be supplied by JA Solar.
The National Energy Administration commenced the “Front Runner” program to promote the development of advanced solar PV technology by domestic suppliers. The first phase entails an investment of approximately $1.6 billion for 13 PV power stations. Upon completion, the facility is expected to generate 1.5 billion kilowatt-hour (kWh) of on-grid energy annually, which will cut the burning of 480,000 tons of coal on an annual basis.
Demand for high-efficiency products is on the rise. High conversion efficiency leads to higher electricity generation, reduced land cost per watt, lower transportation and installation costs, and better project income. To address the rapidly growing customer demand, JA Solar intends to ramp up the annual production capacity of the “Front Runner” project to 1.8 gigawatts (GW) for monocrystalline products and 2.3 GW for polycrystalline products within a year.
Increasing awareness of the drawbacks of fossil fuels is spurring the demand for renewable sources of power generation, particularly solar. Universal abundance of sunlight makes solar projects viable in almost any part of the world. This should help JA Solar benefit over the long run.
Per a U.S. Energy Information Administration report, solar energy will constitute only 1.1% of the total U.S. utility-scale generation in 2017, indicating immense room for growth. Other solar companies are benefitting from the boom as well. Recently, SunPower Corporation SPWR, in collaboration with TOTAL S.A TOT, has agreed to supply 300 GW hours per year of clean solar energy to Santiago metro, Chile, making it the first public transport system to operate mostly on solar power. (SunPower's 100-MW Solar Plant to Power Santiago Subway)
In a similar move, leading supplier of solar products, JinkoSolar Holding Co., Ltd. JKS announced that it has supplied 122 MW of PV modules to Pattern Energy Group LP for the Conejo solar project in Chile. (Read more: JinkoSolar (JKS) Offers 122 MW Modules for Chilean Project)
Currently, JA Solar carries a Zacks Rank #3 (Hold).
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 >>
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
Be the first to comment