|
Industry details:
For this project, “JINKO SOALR” has been chosen for further study.
“Jinko Solar” is a Chinese solar panel manufacturer and it is among the biggest as well as the inventive solar panel producer in the globe. It delivers solar products to other countries in the world in the form of selling the services for the country's usage. The customers are China Itself, “USA”, “Japan”, “South Africa”, “India” and many more countries around the globe. The company also has 9 production infrastructure internationally, 22 over foreign subsidiary companies in “Japan”, “South Korea”, “Vietnam”, “India”, “Turkey” etc. The global sales teams are located in “China”, “UK” etc. As of 2020, the company produce around 1.55 billion US dollars worth of revenue and this region is also the company's most profitable (Jaganmohan, 2021).
|
Analysis – how might this change?
As of 2020, the company produce around 1.55 billion US dollars’ worth of revenue and this region is also the company's most profitable (Jaganmohan, 2021). Another intriguing data is that the company generated a total of about 4,989.49 billion US dollars, this shows that the sales of solar renewable energy will only going to rise for Jinko Salary as well as other companies (Jaganmohan, 2021).
|
Jaganmohan, M., 2021. JinkoSolar’s revenue by region 2020. [online] Statista. Available at: https://www.statista.com/statistics/558861/revenue-of-jinko-by-region/ [Accessed 12 Jan. 2022].
|
|
Industry trends
As per the projection of “International Energy Agency” during the year of 2014 under the situation of “High Renewable”, by the year 2050, “solar photovoltaic” as well as “focused solar power” will going to significantly contribute around 16% & 11% globally in terms of “electricity consumption” and solar energy will be the largest source of electricity internationally. The majority of the solar projects will be going to take place in China and India. Currently, “Building Integrated Photovoltaic (BIPV)” infrastructures are highly desired because it combines using the photovoltaic characteristics for constructing such as roofs, cladding, and windows (Mughal, Sood, and Jarial, 2018). It provides economical as well as aesthetic benefits when used for building.
There is no denying the fact that “Solar Energy” has already exploded in popularity in the current period because of various technological advancements as well as governmental regulations that encourage the production and use of renewable energy. India is considered among the few nations having a significant abundance of "solar energy". The Indian Solar Market has enormous potential for expansion. Furthermore, two reasons that are affecting the identical progress are a shortage of adequate understanding regarding solar power technology among customers as well as the market presence of low-quality items (Mughal, Sood, and Jarial, 2018). Solar cells, often known as photovoltaic, are electrical components that transform sunlight straight into energy. Solar energy has indeed undergone a significant technological transformation. Whereas initial solar technologies comprised of "small-scale photovoltaic" (PV) cells, the latest infrastructure is notably defined mostly by "solar concentrated power (CSP)" as well as by "large-scale PV systems" that act as an input for the energy grid.
“Solar Energy” is among the finest selections in terms of fulfilling the demand for future energy because the energy is supreme in aspects of accessibility, cost-effectiveness, capacities and reliability in comparison to other renewable sources of energy (Kabir et al., 2018). The perovskite solar cells are developed for demonstrating the conversion of sunlight while stopping the infrared light, potentially making it the finest option for solar windows.
|
Analysis and Impact
PESTEL Analysis of Jinko Solar
Political Factors
The political factors are the factors that cannot be forecasted before the occurrence or implementation in various countries. The issues like a high level of taxation in the country can result in affecting business operations. Myanmar is a country with a stable political system and the government itself are planning to use solar energy as the major source of energy accounting for 46% of the total energy source (Onyusheva, and Myaw, 2021).
Environmental Factors
Environmental factors are the most essential factors to be considered for the successful implementation of the renewable energy industry globally. The factors such as air as well as water pollution are heavily connected with the usage of renewable energy. Currently, climate changes are taking place because of heavy usage of fossil fuel that discharges sulphur dioxide, nitrogen oxide, as well as carbon dioxide and these all, are becoming a problem for the environment as well as for renewable energy (Akella, Saini, and Sharma, 2009).
Societal Factors
The societal factors influence the organizational values, trends, power hierarchy etc. The demographic trend or factors such as new generations of the population are putting more emphasis on the preservation of the natural resources as well as the planet itself. People are also leaning more towards using renewable sources of energy. For example, Tesla sales registered an £8.6bn in just three months till June (BBC, 2021).
Technological Factors
The technological factors are the most influential factors in terms of determining the future and in forecasting the future. The technological advancements are taking place in a very fast manner in which the big giant corporations such as Google, Tesla etc pushing the limitation of limitations. For example: “Jinko Solar” joined a strategic partnership with “Tongwei Co. Ltd” for creating the “high purity crystalline silicon” (JinkoSolar, 2021).
Economic Factors
“Jinko Solar” is actively seeking for the expansion of its businesses in other potentially countries such as “South East Asian Countries”. The population of the mentioned country is anticipated to rise by more than 25% that signifies that the demand for their electricity is going to rise by the year 2050 (Onyusheva, and Myaw, 2021). Due to a stable political system, government policies resulting in two potential markets for the company are “Myanmar” and “Vietnam.”
Legal Factors
Legal factors involve all the legal rules and regulations that are required to be followed by the operating companies across the countries. No company can enter any country without properly studying and understanding the legal bindings. For example, Jinko Solar is bound to follow the employee/labour health as well as safety laws depending on the country.
Porter 5 Forces of Jinko Solar
The threat of new entrants
The company also has 9 production infrastructures internationally, 22 over foreign subsidiary companies which are being utilized for effective as well as cost-efficient production. As of 2021, the company has also constructed a vertical integration in terms of solar commodity value chain comprised of an annual capacity of 27GW for mono wafers, 12 GW for solar cells and 31 GW for solar modules (Jinko Solar, 2010). Entering the solar industry is difficult as the economic magnitude requires experience as well as time and massive investments that are very challenging for the new companies to enter the industry.
Threat of substitutes
The threat of substitutes can be very beneficial to the customer or consumers. The businesses always concentrate on the competition among the companies in the industry. The substitutes can be very crucial and dangerous for the Renewable industry even including the chosen segment for this project i.e., solar energy because it will provide alternatives to the customers. According to the REN 21 report, more electricity was produced from solar energy than bio-power (Ranalder et al., 2021). There is a serious need to strategize for other renewable energy companies such as bio-power.
Bargaining Power of Suppliers
To manufacture the silicon raw material requires a high investment in technology and a high level of technology which is not simple to mimic. In the previous period, the major supplier of silicon raw material was the USA as well as Europe, and these countries are very powerful and had more bargaining power. Currently, many Chinese companies developed a new technology for the production of raw materials and decrease prices which resulted in reasonable prices of “PV Cells”. Presently, the solar manufacturers, as well as renewable energy companies, can choose from numerous soldiers and negotiation power remains high for the renewable energy businesses.
Bargaining Power of Buyers
In the years 2007 and 2011, there were some massive investments in the renewable energy industry and it was a high-speed development that resulted in the rise of many suppliers in the market and due to that the power of buyers increased. Ultimately, it leads to a decrement in selling prices because of numerous options to choose from.
Industry Rivalry
The industrial rivalries were very critical in the year between 2010 and 2011, there was intense and critical competition, primarily in China. Many companies entered the industry and led to failures such as bankruptcies and many companies started to shut down the manufacturing plants and left the renewable energy industry. “Jinko Solar” is a Chinese solar panel manufacturer and it is among the biggest as well as the inventive solar panel producer in the globe. It delivers solar products to other countries in the world in the form of selling the services for the country’s usage. This shows that industry rivalry can be a major force.
|
Onyusheva, I.V. and Myaw, G.Y., 2021. SOLAR ENERGY DEVELOPMENT AND MARKET EXPANSION IN SOUTH-EAST ASIA: THE CASE OF MYANMAR AND VIETNAM. Central Asian Economic Review, (1), pp.77-83.
Akella, A.K., Saini, R.P. and Sharma, M.P., 2009. Social, economical and environmental impacts of renewable energy systems. Renewable Energy, 34(2), pp.390-396.
BBC., 2021. Tesla profit surge driven by record car deliveries. BBC News. [online] 26 Jul. Available at: https://www.bbc.com/news/business-57935264 [Accessed 12 Jan. 2022].
JinkoSolar., 2021. JinkoSolar to sign a strategic partnership agreement with Tongwei for project investment and industrial chain cooperation | JinkoSolar. [online] ir.jinkosolar.com. Available at: https://ir.jinkosolar.com/news-releases/news-release-details/jinkosolar-sign-strategic-partnership-agreement-tongwei-project [Accessed 12 Jan. 2022].
Jinko Solar., 2010. Jinko Solar-????. [online] www.jinkosolar.com. Available at: https://www.jinkosolar.com/en/site/newsdetail/1115 [Accessed 12 Jan. 2022].
Ranalder, L., Busch, H., Hansen, T., Brommer, M., Couture, T., Gibb, D., Guerra, F., Nana, J., Reddy, Y., Sawin, J. and Seyboth, K., 2021. Renewables in Cities 2021 Global Status Report. REN21 Secretariat: Paris, France.
Mughal, S., Sood, Y.R. and Jarial, R.K., 2018. A review on solar photovoltaic technology and future trends. International Journal of Scientific Research in Computer Science, Engineering and Information Technology, 4(1), pp.227-235.
Kabir, E., Kumar, P., Kumar, S., Adelodun, A.A. and Kim, K.H., 2018. Solar energy: Potential and future prospects. Renewable and Sustainable Energy Reviews, 82, pp.894-900.
|
|
Key trends and developments developed from the analysis
Strengths
As discussed above again and again that “Jinko Solar” is a Chinese solar panel manufacturer and it is among the biggest company in the globe. The company has an extensive distribution infrastructure that can enable the company to reach its potential as well as the existing business market around the globe. The company has a “low-cost structure” that allows the company to produce various solar products at a very low cost and sell the solar products at reasonable prices which make it affordable for the customer base. The financial standings of the company are top of the line, the annual revenue of “Jinko Solar” is 5.4bn USD (Jaganmohan, 2021).
Weaknesses
The company is putting heavy investments in Research and development (R&D) which is a positive thing until the company is aware of their allocation of financial funds in various sectors of the business operations. In the case of “Jinko Solar”, the investments of R&D departments are heavy and more than the normal investments that should be used in the department. The diversification in terms of the workforce is very limited to the local employees or workforce in the company, the involvement of other employees from a different background is very less in comparison to other local employees.
Opportunities
According to the REN21 report on renewable energy stated that the Solar PV crossed the 100GW target in the year 2018 and registered an increment of 25% from the year 2017. The Solar Power industry is rising in terms of growth and expansion; this is going to be the future for the Solar PV companies like “Jinko Solar”. “Solar PV” is the fastest rising energy technology (Ranalder et al., 2021). There was a registration of 33.3 GW of “Solar Thermal Capacity” in 2018 and China was accounted for 74% of gross addition.
Threats
According to the “Environmental Progress”, developing countries such as China and India often incinerate the “E-Wastes” for retrieving the “copper wires” and that is very valuable when reselling. The continuous burning of “E-Waste” leads to the extremely toxic smoke vapour that can result in “Cancer” as well as “Teratogenic” whenever someone inhales this toxic smoke (Guangul, and Chala, 2019). This can be approximated that each “quadrillion Joules” worth of energy is generated.
|
Notes to justify why these are the key trends
These trends are going to be relevant since the solar renewable energy is going to be the powerhouse of the global economy. The Solar power is among the quality sources of renewable energy sources which just need to be “harvested”, and there is no denying the fact that it is the global fastest-growing energy technologies. Currently, the solar energy has a potential of about more than 600GW (Aanesen, Heck, and Pinner, 2012).
|
Aanesen, K., Heck, S. and Pinner, D., 2012. Solar power: Darkest before dawn. McKinsey on Sustainability & Resource Productivity, 14.
Jaganmohan, M., 2021. Topic: JinkoSolar. [online] Statista. Available at: https://www.statista.com/topics/2985/jinksolar/ [Accessed 12 Jan. 2022].
Ranalder, L., Busch, H., Hansen, T., Brommer, M., Couture, T., Gibb, D., Guerra, F., Nana, J., Reddy, Y., Sawin, J. and Seyboth, K., 2021. Renewables in Cities 2021 Global Status Report. REN21 Secretariat: Paris, France.
Guangul, F.M. and Chala, G.T., 2019, January. Solar energy as renewable energy source: SWOT analysis. In 2019 4th MEC international conference on big data and smart city (ICBDSC) (pp. 1-5). IEEE.
|
|
Design your grid (the dimensions of the grid)
Fulfilling the Future Needs
As per the present statistics of the "Average Annual Growth Rates" of Renewable Energy Infrastructure and Bio fuels Generation, from 2010 - 2015, this was revealed that solar power is indeed the greatest growth percentage among renewable energy sources in terms of producing electricity. Currently, a considerable amount of investments are being invested towards creating the future of solar simpler, quicker and accessible. Overall manufacturing expenses of such solar gear have been substantially cut approximately by 27 per cent (Onyusheva, and Myaw, 2021). As per the data on "Solar PV Capacity" shares of the Leading 15 nations in 2015, it can be witnessed that China is having the major proportion of the share of 30 per cent total market share. Furthermore, Chinese solar enterprises are already world pioneers within the solar sector. Commercial solar PV deployments have also expanded throughout various cities, aided by advantageous regulations and tax benefits (Ranalder et al., 2021). Solar energy is assisting the countries for saving energy in the emerging countries as well as developed countries. Electricity production via solar thermal technologies offers an intriguing future for the country, most notably the Concentrated Solar Power since it has the features such as “high capacity”, “efficiency” as well as energy preservation capabilities Hayat et al., 2019). Solar energy is also used in the agricultural sector especially for “water treatment” and “irrigation”.
Reliable Sources Of energy
Solar energy is the most reliable source of energy out of any energy present on the planet earth. The energy is indeed reliable as well as feasible for usage. Since the electricity can be produced from the sunlight available on the whole planet earth. The companies are also started to rely on solar energy for their business operations as well as the sustainability of the company. One such big example can be “Tesla”, which is one of the largest manufacturers of EVs in the world. Tesla has a Solar Roof option for house roofs that can be purchased and implemented (TESLA, 2019). The solar roof is capable of powering the whole house with solar energy, and it also has a prebuilt solar energy storage system. TESLA also acquired SolarCity for $2.6bn; this shows the potential and reliability of solar energy for the companies and the end-user as well (BBC, 2016).
|
Different dimensions
Opportunities
The progress in the Photovoltaic Cell and its storages system is one of the dimensions of the key trend grid. The PV cells and its storage system are very crucial for the development of solar power cells in order to substitute other renewable energy sources. The increasing demand for the photovoltaic adoptions as well as installations of the “storage grid” and it is estimated to grow and expand and it is acting as a fuel for the “lithium ion-powered battery” for developing the “solar energy storage” (Sivaram, 2017).
Emerging Of Big Solar Projects
In 2020, “Adani Green Energy” has won the biggest individual offer for the solar development of 8 GW and this will be supplied by the conclusion of 2025. This big project is approximated to receive a overall investment of 6 billion USD and furthermore it is intended for eliminating the “900 million tonnes of CO2” from the atmosphere throughout its lifespan (Mishra et al., 2020).
|
Onyusheva, I.V. and Myaw, G.Y., 2021. SOLAR ENERGY DEVELOPMENT AND MARKET EXPANSION IN SOUTH-EAST ASIA: THE CASE OF MYANMAR AND VIETNAM. Central Asian Economic Review, (1), pp.77-83.
Ranalder, L., Busch, H., Hansen, T., Brommer, M., Couture, T., Gibb, D., Guerra, F., Nana, J., Reddy, Y., Sawin, J. and Seyboth, K., 2021. Renewables in Cities 2021 Global Status Report. REN21 Secretariat: Paris, France.
Hayat, M.B., Ali, D., Monyake, K.C., Alagha, L. and Ahmed, N., 2019. Solar energy—A look into power generation, challenges, and a solar?powered future. International Journal of Energy Research, 43(3), pp.1049-1067.
TESLA., 2019. Solarglass Roof | Tesla. [online] Tesla.com. Available at: https://www.tesla.com/solarroof [Accessed 12 Jan. 2022].
I believe, the companies are started to put heavy investments on production as well as the development of Solar PV cells. As discussed in the dimensions, the PV and storage cells are very crucial for the development of Solar Power Cells which could substitute the other type of renewable energy sources. The installations of solar panels in the Tesla’s Giga factory Nevada with a potential of 3,200 Kw and this is going to grow further around 24,000Kw by the end of 2021.
|
|
Name and populate the four quadrants
Fulfilling the Future Needs
As per the present statistics of the "Average Annual Growth Rates" of Renewable Energy Infrastructure and Bio fuels Generation, from 2010 - 2015, this was revealed that solar power is indeed the greatest growth percentage among renewable energy sources in terms of producing electricity. Currently, a considerable amount of investments are being invested towards creating the future of solar simpler, quicker and accessible. Overall manufacturing expenses of such solar gear have been substantially cut approximately by 27 per cent (Onyusheva, and Myaw, 2021). As per the data on "Solar PV Capacity" shares of the Leading 15 nations in 2015, it can be witnessed that China is having the major proportion of the share of 30 per cent total market share. Furthermore, Chinese solar enterprises are already world pioneers within the solar sector. Commercial solar PV deployments have also expanded throughout various cities, aided by advantageous regulations and tax benefits (Ranalder et al., 2021). Solar energy is assisting the countries for saving energy in the emerging countries as well as developed countries. Electricity production via solar thermal technologies offers an intriguing future for the country, most notably the Concentrated Solar Power since it has the features such as “high capacity”, “efficiency” as well as energy preservation capabilities Hayat et al., 2019). Solar energy is also used in the agricultural sector especially for “water treatment” and “irrigation”.
Reliable Sources Of energy
Solar energy is the most reliable source of energy out of any energy present on the planet earth. The energy is indeed reliable as well as feasible for usage. Since the electricity can be produced from the sunlight available on the whole planet earth. The companies are also started to rely on solar energy for their business operations as well as the sustainability of the company. One such big example can be “Tesla”, which is one of the largest manufacturers of EVs in the world. Tesla has a Solar Roof option for house roofs that can be purchased and implemented (TESLA, 2019). The solar roof is capable of powering the whole house with solar energy, and it also has a prebuilt solar energy storage system. TESLA also acquired SolarCity for $2.6bn; this shows the potential and reliability of solar energy for the companies and the end-user as well (BBC, 2016).
Opportunities
The progress in the Photovoltaic Cell and its storages system is one of the dimensions of the key trend grid. The PV cells and its storage system are very crucial for the development of solar power cells in order to substitute other renewable energy sources. The increasing demand for the photovoltaic adoptions as well as installations of the “storage grid” and it is estimated to grow and expand and it is acting as a fuel for the “lithium ion-powered battery” for developing the “solar energy storage” (Sivaram, 2017).
Emerging Of Big Solar Projects
In 2020, “Adani Green Energy” has won the biggest individual offer for the solar development of 8 GW and this will be supplied by the conclusion of 2025. This big project is approximated to receive an overall investment of 6 billion USD and furthermore it is intended for eliminating the “900 million tonnes of CO2” from the atmosphere throughout its lifespan (Mishra et al., 2020).
|
Notes on the scenario contents and names
Solar power is indeed the greatest growth percentage among renewable energy sources in terms of producing electricity. A considerable amount of investments are being invested towards creating the future of solar simpler, quicker and accessible. Overall manufacturing expenses of such solar gear have been substantially cut approximately by 27 per cent. China is having the major proportion of the share of 30 per cent total market share. Commercial solar PV deployments have also expanded throughout various cities. China's solar enterprises are already world pioneers within the solar sector.Solar energy is the most reliable source of energy out of any energy present on the planet earth. The companies are also started to rely on solar energy for their business operations. One such big example can be "Tesla", which is one of the largest manufacturers of EVs in the world. The Photovoltaic Cell and its storages system is one of the dimensions of the key trend grid. The PV cells and its storage system are very crucial for the development of solar power cells. It is acting as a fuel for the "lithium ion-powered battery" for developing the "solar energy storage". "Adani Green Energy" has won the biggest individual offer for the solar development of 8 GW and this will be supplied by the conclusion of 2025. This project is approximated to receive a overall investment of 6 billion USD and is intended for eliminating the "900 million tonnes of CO2" from the atmosphere throughout its lifespan.
|
Onyusheva, I.V. and Myaw, G.Y., 2021. SOLAR ENERGY DEVELOPMENT AND MARKET EXPANSION IN SOUTH-EAST ASIA: THE CASE OF MYANMAR AND VIETNAM. Central Asian Economic Review, (1), pp.77-83.
Ranalder, L., Busch, H., Hansen, T., Brommer, M., Couture, T., Gibb, D., Guerra, F., Nana, J., Reddy, Y., Sawin, J. and Seyboth, K., 2021. Renewables in Cities 2021 Global Status Report. REN21 Secretariat: Paris, France.
Hayat, M.B., Ali, D., Monyake, K.C., Alagha, L. and Ahmed, N., 2019. Solar energy—A look into power generation, challenges, and a solar?powered future. International Journal of Energy Research, 43(3), pp.1049-1067.
TESLA., 2019. Solarglass Roof | Tesla. [online] Tesla.com. Available at: https://www.tesla.com/solarroof [Accessed 12 Jan. 2022].
Sivaram, V., 2017. Unlocking clean energy. Issues in Science and Technology, 33(2), p.31.
Mishra, S.P., Giri, N.C., Behera, D.D. and Nayak, S.R., 2020. Solar Trees: Shift from Grey to Green Sky for Future. Fuel Pumps under Clean/Green Energy: India. Int J of Env Clim Change, 10(11), pp.68-86.
Tesla's Giga factory Nevada has erected solar panels with a capacity of 3,200 Kw and this is anticipated to develop further approximately 24,000Kw by the end of 2021. I think, the corporations have begun to place major expenditures on manufacturing as well as the research of Solar PV cells. The revenue from solar renewable energy is only going to increase for Jinko as well as other firms. As of 2020, the corporation create roughly 1.55 billion US dollars worth of revenue. This area is also the company's biggest lucrative
|
