Zhejiang Jingxing Paper Joint Stock Co. Ltd. announced on May 27 that it will be investing RMB 25.93 million to install PV systems on the walls and rooftops of its facility buildings in China. The installed capacity is set at 5,947kW, which translates to an annual production of 5.95 million kWh. This project will be outsourced to EPC firms. This announcement was first picked up by Chinese financial news outlets.
According to the reporting by Chinese news outlets, Jingxing will divide the project into two parts, with each assigned to an EPC firm. The project is expected to take about two months to complete. The investment or cost related to EPC works is estimated to reach RMB 25.5 million. The expenses related to the project are estimated to total RMB RMB 430,000.
Jingxing has set aside an area of 47,253 square meters for the installation of PV systems. The company estimates that the total amount of the electricity that the project will generate over a span of 20 years will come to 107.22 million kWh. This calculation assumes that the average operational life a PV system is 20 years, and that the efficiency of a PV system drops 1.1% every year. In terms of cost savings, the company estimates that the project will reduce a total of RMB 85.78 million in electricity cost over a span of 20 years. This calculation factors in the current average daytime rate of RMB 0.8 per kWh in the Chinese electricity market. Furthermore, the project will be supported by a subsidy of RMB 0.1 per kWh during the first three years of its operation. The total subsidized amount over this three-year period will come to around RMB 1.7644 million. In terms of revenue generation, the project will yield a total of around RMB 875.444 million over a span of 20 years. The company also estimates that the investment cost will be recuperated in about six years.
Regarding coal and emission reductions, the project is expected offset 5,929 tons of CO2 emissions per year and 1,719 tons of coal equivalent per year once it is up and running. All in all, Jingxing expects this green energy project to lower the operational and cost pressures associated with energy usage and CO2 emissions. In particular, the new PV systems will support the company’s production facilities in cutting the electricity cost during the peak demand period. Moreover, this project will serve as an example that the company is ramping up its efforts in emission reduction and sustainable development.