JinkoSolar has successfully completed the Segovia Solar Cluster in Spain, a project with a capacity of 513.1 MWp that utilizes its advanced N-type TOPCon Tiger Neo modules. This project, developed by ib vogt, features 887,409 high-efficiency solar panels and represents a key development in Europe’s renewable energy landscape.
The Segovia Solar Cluster is poised to generate approximately 1,036.6 GWh of clean energy annually, enough to supply power to 300,000 households. This aligns with Spain’s ambitious goal of achieving 74% renewable electricity by 2030. The project showcases the effectiveness of deploying cutting-edge solar technology through partnerships in the private sector, which is vital for reducing carbon emissions while also delivering economic benefits.
JinkoSolar’s Tiger Neo modules are recognized for their efficiency, achieving up to 22.8%, and their bifacial capabilities, which allow for energy capture on both sides of the panel. The N-type TOPCon technology used in these modules minimizes performance degradation over time, ensuring reliability in Spain’s diverse climate conditions. As a result, JinkoSolar has established itself as a preferred supplier for large-scale projects, where maximizing energy output is essential. The company’s recognition as the “Overall Highest Achiever” by the Renewable Energy Test Center for six consecutive years confirms its leading position in the industry.
The partnership with ib vogt has proven advantageous, with the developer securing long-term Power Purchase Agreements (PPAs) with major corporations like Thermo Fisher Scientific and Equinix. These agreements provide stable revenue streams for the Segovia Cluster, effectively lowering project risks. This model can be replicated in future projects as European companies aim for net-zero emissions, positioning JinkoSolar as a vital player in facilitating these arrangements.
The €350 million financing package for the project, led by financial institutions such as NORD/LB and Santander, indicates strong backing from investors. For JinkoSolar, this project exemplifies the successful integration of its value chain, from module manufacturing to project execution, making it a comprehensive partner for large solar developments.
Spain’s target for 2030 necessitates an increase of more than 50 GW in solar capacity, quadrupling the current levels. The Segovia Cluster’s contribution of over 480,000 tonnes of CO₂ emissions reduction annually aligns well with these goals. Additionally, with the European Union’s REPowerEU initiative allocating €150 billion for renewable energy and energy efficiency through 2027, JinkoSolar is positioned to leverage domestic and international opportunities.
The agrivoltaic design of the Segovia project, which combines solar energy production with sheep grazing, reflects an innovative approach to land use in densely populated regions. Such strategies may increase demand for JinkoSolar’s modules in markets like Germany and the UK, where land availability is limited.
JinkoSolar’s stock has shown resilience, outperforming the S&P 500 by 28% year-to-date, indicating strong investor confidence in its growth potential. The company currently holds the third position in global module shipments with a market share of 15.6%, and its focus on N-type technology may propel it to the top in high-margin segments.
The success of the Segovia project could open doors for similar developments within Spain’s 10 GW+ pipeline, potentially boosting JinkoSolar’s European revenue, which currently constitutes about 25% of its total earnings. Vertical integration, controlling the production from polysilicon to modules, grants JinkoSolar price leverage amid rising silicon shortages, further strengthening its market position.
Despite a promising outlook, JinkoSolar faces risks, including geopolitical tensions and silicon supply issues. However, the EU’s strategy to localize solar manufacturing could mitigate some of these risks, allowing JinkoSolar to expand its operations in Spain.
The completion of the Segovia Solar Cluster serves as a model for how JinkoSolar can drive Europe’s energy transition through innovative technology and strategic partnerships. With Spain’s renewable targets and EU funding initiatives, JinkoSolar is well-positioned to gain substantial market share in a solar market valued at $140 billion annually. Investors may find JinkoSolar’s valuation, currently at 15 times forward price-to-earnings, attractive compared to competitors like LONGi at 22 times, especially given its focus on advanced N-type technology.
