JinkoSolar and sPower has entered into a PV module supply agreement. JinkoSolar will deliver 1GW of PV modules to the U.S.-based power producer for projects to be built before the end of 2016.
sPower now has 500MW of operating portfolio and plans to add an extra 700MW on line during 2016. The company majorly develops large-scale solar and wind energy projects across the U.S. and the UK. sPower has already contracted Rosendin Renewable Energy Group to provide EPC services for its 2016 portfolio.
"The timing of the agreement is significant in light of the recent extension by the US Federal Government of Investment Tax Credits for utility-scale solar development", said Ryan Creamer, sPower CEO. "Strategic sourcing is an element of sPower's plan to secure resources in order to ensure that we successfully achieve our aggressive development goals."
The supply agreement involving delivering 3 million of JinkoSolar’s high efficiency PV modules, marking it the largest one for JinkoSolar in the U.S. to date. In order to avoid the U.S.’s anti-dumping and countervailing duties imposed on China-imported PV products, JinkoSolar may ship sPower the PV modules from its manufacturing facilities outside China.
According to EnergyTrend’s data, JinkoSolar started operation of the Malaysian plant last May. The plant has 500MW of cell production capacity and 450MW of module capacity. On the other hand, the company runs a 200MW PV module manufacturing plant in Portugal. Since it is impossible for JinkoSolar to meet the 1GW deal with sPower by current overseas capacity, the deal may lead to a capacity expansion outside China or outsourcing orders.