JinkoSolar has announced that it has supplied 275.4 MWdc of high efficiency modules to Green Light Contractors for use in the Bungala Solar Farm near Port Augusta, South Australia, which is a joint venture between Enel Green Power and Dutch Infrastructure Fund.
Green Light Contractors, a subsidiary of Elecnor Group is EPC contractor for the Bungala project was recently completed and started production at its first 137.7 MWdc phase. The Bungala project is the largest solar PV project under construction in Australia.
Jinko has also reported their second quarter 2018 results, with its solar module shipments and revenues increasing by 38.7% sequentially to 2,794MW, mainly driven by continuous demand and new product launches. Gross profit increased 11%, and particularly net profit of Q2 has seen an increase of 2653% from the previous quarter and 109% increase from the second quarter of 2017, as a result of a strong global sales network, higher capacity utilization, and industry leading cost structure helped offset the impact from new policies issued by the Chinese government on May 31st.
Based on the current business outlook, the company is expected to deliver 6.7GW-7.2GW of solar panels during the second half of the year, representing a 40% sequential increase. On a full year base, the total shipment will reach between 11.5GW – 12GW, increasing >17% YoY. Jinko’s gross margin and net income is expected to grow significantly in the coming quarters Q3 & Q4 due to continual operational efficiency improvement, diversified customer base, highly competitive products and higher level of R&D activities.
Regarding the impact of China’s latest policy, from the global perspective, Jinko say the policy will accelerate grid parity worldwide, and incubate numerous growth drivers for the industry. Even in China, demand from Top Runner Programs, poverty alleviation projects, local government subsidies, and self-contained DG projects will continue to drive the growth in the Chinese market, especially in regions with ample sunlight and high commercial power prices. On one hand, it will push the agenda for industrial upgradation and accelerate the industry’s consolidation by phasing out outdated production capacities and replacing them with high efficiency ones. On the other hand say Jinko, it will also push the rapidly falling cost of solar, making solar more competitive and stimulating the global demand. Grid parity spurred by China’s current policy will lead to new waves of demand for years to come.