JinkoSolar’s downstream project arm, JinkoSolar Power has agreed terms with the local government of Hengfeng county in Jiangxi Province to develop a total of 100MW of PV projects in the region this year at a cost of approximately RMB800 million (US$130 million).
The company recently secured US$225 million in downstream project finance funding from China Development Bank, Macquarie and New Horizon for JinkoPower’s project pipeline that was increased from 400MW of planned projects completed in 2014 to 600MW to 650MW during JinkoSolar’s recent second quarter earnings call.
The Jiangxi Province projects entail Jinko Power building, owning and operating the plants that are expected to receive subsidies of RMB1.2 per kWh.
The company said that construction had already begun in the third quarter and would be completed in the fourth quarter of 2014. The projects are expected to generate annual revenue of approximately RMB132 million (US$21.5 million).
“Our power plant development has traditionally been in northwestern China but is now gradually moving towards China's southern and eastern coasts resulting in a more balanced geographic mix,” commented Xiande Li, Chairman of JinkoSolar. “By diversifying the geographic mix of our downstream business, we are working to maintain our leading position in the industry. Each year, the development of projects in western China is impacted by the region's severe cold winter. Weather in China's East and South however, is much more moderate by comparison.”
China has set restrictions on ground mounted project capacities in the western regions, while lowering FiT payments to encourage more distributed generation (DG) projects in high population areas in the eastern regions and more attractive FiT payments.
JinkoSolar is expected to launch a yield co to house its PV project portfolio at sometime in the future.
The company expects total solar module shipments to be in the range of 800MW to 850MW in the third quarter of 2014, which is expected to include 650MW to 680MW of module shipments to third parties and 150MW to 170MW for its own downstream PV project business.