Photovoltaic affordable Internet access has increasingly become a global trend.
On February 8, Jinko Power Technology Co.Ltd(601778) said that a wholly-owned subsidiary of the company won the bid for the 300MW photovoltaic power generation project in Saudi Arabia, with a total investment of about US $209 million.
The 300MW photovoltaic power generation project in Saudi Arabia is one of the third round of national renewable energy projects in Saudi Arabia. Jingke Hong Kong, a wholly-owned subsidiary of Jinko Power Technology Co.Ltd(601778) , and two other companies won the bid for the project with the first bidding price (lcoe).
It is understood that the actual construction scale of the Saudi Arabia project is about 348.80mwp, and the total investment of the project is about 209 million US dollars (excluding tax), of which the investment in fixed assets is about 204 million US dollars. It is worth noting that the bid winning price (lcoe) of the project is 5.5626hals/kwh (about 1.48 cents / kWh), which means that less than 10 cents per kilowatt hour.
strive for the best cost
boost PV parity online
Jinko Power Technology Co.Ltd(601778) is the first share of private photovoltaic power stations in China, which can provide an integrated solution of professional evaluation + financing + EPC + operation and maintenance of photovoltaic power stations. The company’s overseas independent power generation business started in 2015. Now it has developed 14 projects in 7 countries. At present, it has business layout in core markets including UAE and Europe.
In the past six years, Jinko Power Technology Co.Ltd(601778) overseas business department has always been among the best in more than 16 global bidding projects, and has set a world record for bidding price more than once. Among them, the Abu Dhabi 2.1gw project developed in 2020 has set a double record of the world’s largest single power station and the lowest electricity price. When bidding for the project, the consortium composed of Jinko Power Technology Co.Ltd(601778) and EDF gave a record low price of 1.35 cents / kWh.
A few days ago, the person in charge of Jinko Power Technology Co.Ltd(601778) said in an interview with the reporter of Securities Daily that the company’s operation in overseas markets, including Saudi Arabia project and Abu Dhabi phase II project, has repeatedly set record on grid price, which has effectively promoted the trend of global affordable Internet access. Behind this, it is inseparable from the efforts and accumulation of the company in many aspects.
“In terms of market selection, we mainly choose the market with high national credit rating and long-term stable power demand. Through the long-term power purchase and sale arrangement endorsed and promised by the government, we cooperate with world-renowned international banks, insurance companies and multilateral institutions to achieve competitive non recourse project financing conditions.” He added.
On the other hand, with rich project development and operation experience and outstanding resource integration ability, combined with global industrial chain management and forward-looking business and engineering design arrangements, the company’s overseas management team further gives full play to the company’s consistent advantages of mobility and flexibility, and achieves highly competitive financing costs in combination with the capital market.
“Externally, we always maintain a strong sensitivity, touch the pulse of the market and understand the latest price trends in the market in real time. Our goal is to optimize and save costs while ensuring quality and strive to optimize costs.” The person in charge said.
It is understood that after the completion of the above Saudi Arabia project, the annual equivalent utilization hours are expected to be about 2510 hours and the average annual power generation is about 876 million kwh. It is estimated that during the 30-year operation period, the average annual operating income of the project is expected to be about US $13.33 million (equivalent to about RMB 84.91 million), the average annual net profit is about US $1.4 million (equivalent to about RMB 8.92 million), the internal rate of return on capital is about 8%, and the investment payback period is about 15 years.
Jinko Power Technology Co.Ltd(601778) said that the one in line with the one belt, one road policy, which is in line with the company’s strategic plan for global development, will help further expand the installed capacity of overseas PV plants, optimize the layout of the company’s power plants, enhance the competitiveness and brand influence of the overseas PV market, and obtain investment opportunities for high-quality PV projects overseas. And can bring certain economic benefits to the company.
deep layout of overseas markets
continue to improve global competitiveness
The layout of global development is Jinko Power Technology Co.Ltd(601778) ‘s long-term development strategy. “In the era of carbon neutrality, the company is more determined and adheres to this strategic direction. In order to deal with global climate change, most countries have successively put the goal of carbon neutrality on the agenda, and the global low-carbon transformation is a deterministic trend.” The relevant person in charge told the reporter of Securities Daily.
In the overseas market, Jinko Power Technology Co.Ltd(601778) has several development directions in the future: first, selectively participate in large-scale bidding projects in the core market. First level development team, second level development team. Through large-scale international bidding and excellent bid winning performance, Jinko Power Technology Co.Ltd(601778) has a high success rate in the implementation of overseas projects, enjoys a strong reputation and performance in the industry, and has become the preferred partner of a world-class large energy group.
\u3000\u3000 “The company’s core market positioning is very clear, first in the Gulf countries, then in Europe and Latin America. It selectively determines the focused projects and markets in the Asia Pacific region. The company has a highly international team, close to the focused market, and realizes the localization operation of headquarters management and supervision. It has branches in six different core markets around the world, with local development, financing and engineering Cheng and other management personnel. ” The person in charge said.
In the global post epidemic era, governments of all countries are vigorously promoting the development of low-carbon. It is expected that the new installed capacity of global photovoltaic is expected to further increase in 2022. According to the prediction of Bloomberg New Energy Finance (bnef), the installed capacity of photovoltaic systems deployed worldwide will reach the milestone of 200GW for the first time by 2022. In 2021, the total installed capacity of photovoltaic systems installed worldwide was 183gw, an increase of 40gw compared with 2020. Due to the stronger than expected performance of China’s photovoltaic market, the installed capacity of photovoltaic deployment in 2021 is also much higher than the initially estimated 150gw.
According to the data, as of September 30, 2021, Jinko Power Technology Co.Ltd(601778) overseas power stations under construction and management had a capacity of 3.4gw, and overseas reserve projects were nearly 10GW. This year, with the decline of silicon wafer price, the profit pressure of battery, module and other enterprises will be relieved, the yield of downstream enterprises will be effectively improved, and the demand for photovoltaic installation of terminals can be released.
This is bound to make the photovoltaic industry chain return to rationality. Only when the whole photovoltaic industry chain cooperates fully in price and reasonably controls profits in each link, can the industry develop together and achieve win-win results.
