JinkoSolar, the world’s largest solar panel producer by shipments, said it will press ahead with overseas expansion plans despite the current geopolitical and “overcapacity” challenges, and actively develop its energy storage business to further facilitate a global energy transition.
Even though concerns persist over so-called solar panel overcapacity, which has trimmed the returns of Chinese solar firms, the company believes the most advanced capacity will always remain in demand, while low-end overlapping capacity will always be in surplus, said Qian Jing, vice-president of JinkoSolar, on the sidelines of the World Economic Forum’s 15th Annual Meeting of the New Champions, or 2024 Summer Davos.
Qian said the government’s recent commitment to limit “low-end” solar panel manufacturing following a representation by industry leaders earlier this month, will better regulate the industry toward a more sustainable development.
The National Energy Administration has vowed to guide capacity expansions and avoid redundant investments, monitoring solar factory utilization and expansion plans to help improve market conditions, in response to solar companies’ requests seeking Beijing’s intervention after a surge in capacity.
The growth of solar power over the past two decades has been phenomenal, from a niche sector to the world’s dominant source of new energy. China and the global market still show strong demand prospects for clean energy, prompting the solar industry’s top players to further expand high-efficiency capacity in the long term.
Qian attributed the recent “overcapacity” to investments in the previous years and capital market enthusiasm. Over the long term, she sees an industry shakeout — which is expected to eliminate lagging low-end capacity — as being beneficial for JinkoSolar, as the company has been stepping up efforts in research and development, investing billions of dollars in technological innovation.
With low-end capacity set to be eliminated, the company is confident about its market share rising to 20 percent in 2024 from last year’s 15 percent, further consolidating its position at home and abroad, she said.
The company currently operates three overseas factories, in Malaysia, Vietnam and the United States. It is in the process of evaluating its fourth plant abroad, which is most likely to be located in the Middle East, as it enjoys better credit, sufficient financing resources, stable conditions, policy support and an ambitious market, she said. JinkoSolar’s commitment toward long-term strategic overseas expansion remains unchanged, while it will also stay cautious when choosing the site, taking into consideration technological standards, costs and competitiveness, she said.
According to Qian, while the current cost of solar power has fallen below that of coal-fired power, the renewable energy source will only become absolutely competitive when the combined cost of solar and energy storage is equal to that of coal-fired electricity.
“Renewable energy’s intermittency can only be fully addressed when energy storage costs are on par with coal-fired power. JinkoSolar is significantly investing in energy storage, which is the company’s second-largest growth sector,” she said.
New energy storage, or energy storage using new technologies such as lithium-ion batteries, liquid flow batteries, compressed air and mechanical energy, is an important foundation for building a new power system in China, enjoying the advantages of quick response, flexible configuration and short construction periods.
JinkoSolar aims to become the world’s leading energy storage company within the next three to five years.
The nation’s energy storage capacity further expanded in the first quarter of 2024 amid efforts to advance its green energy transition, with installed new-type energy storage capacity reaching 35.3 gigawatts by end-March, soaring 2.1 times year-on-year, according to the National Energy Administration.