Jinko Power Technology Co. Ltd. announced on February 7 that a consortium comprised of its subsidiaries – Jinko Power (HK) Ltd., Jinko Power MiddleEast Holding Co. Ltd., and Jinko Power Dhafra Holding Co. Ltd. – has won a 300MW PV project tender from the government of Saudi Arabia. Known as Saad Solar PV Independent Power Project (IPP), this tender is part of the third round of auctions held under the country’s National Renewable Energy Program. In a related document that Jinko Power filed with the Shanghai Stock Exchange, the company stated that the consortium submitted the winning bid price (or the LCOE tariff) of USD 0.0148 per kWh. This story was first reported by local news outlets such as ZAWYA and renewable energy news websites.
Jinko Power was first established as a subsidiary of JinkoSolar Holding Co. Ltd. in 2011. It focuses on PV projects and related downstream services.
The proposal to invest in the 300MW project in Saudi Arabia was passed at Jinko Power’s 26th meeting of the eighth session of its board on January 28. By approving this proposal, Jinko Power has agreed to work with a third party to invest, build, and operate the project. It has also agreed to have Jinko Power HK serve as the leading representative that would sign all the relevant contracts and documents. According to the company’s own article of incorporation and relevant laws, this type of decision can be taken by the board of directors without first putting it up for a vote at a shareholders meeting.
With the tender secured, the consortium is ready to sign the PPA that will give it the right to build and operate the project. According to the document filed with the Shanghai Stock Exchange, the actual scale of Saad Solar PV IPP will reach 348.80MWp, and the total investment in the project is estimated around USD 209 million. The project will be located 85km from the country’s capital Riyadh. It, together with five other PV projects and one wind project, make up the third auction round under the Category B of the National Renewable Energy Program. Their collective generation capacity is estimated around 1.58GW.
Saudi Arabia is one of the major economies in the Middle East and North Africa. With its own approach to governance, it offers relatively low risks and a friendly business environment to foreign investors. Furthermore, the Saudi government has been pushing for the diversification of its energy sources and the optimization of its electric power system in recent years. Since the country has an abundance of solar resource, it is highly favorable for the development of PV projects.
Jinko Power said that Saad Solar PV IPP not only fits into its globalization strategy but also supports China’s Belt and Road Initiative. Securing this tender is expected to improve Jinko Power’s competitiveness and brand influence in the global market. The project represents an expansion of the company’s overseas portfolio and generation assets. Going forward, Jinko Power will continue to seek opportunities to invest in high-quality overseas projects that can bring substantial economic benefits.
Saad Solar PV IPP will operate under the build-own-operate model. The construction phase is expected to take 24 months, and the operational lifespan of the project is estimated to reach 30 years.