Keppel Infrastructure Trust (KIT) has signed a memorandum of understanding with a leading Chinese solar energy producer, Jinko Power, to explore solar farm and energy storage investments.
Under the terms of the agreement, Jinko will identify up to 1GW of solar farm and energy storage projects from its pipeline of assets, which the Singapore-listed vehicle can potentially invest in.
The projects are likely to be located in key developed markets of Asia Pacific, Europe and the Middle East.
It is envisaged that KIT and Jinko will enter into separate investment agreements to acquire and hold the respective assets through special purpose vehicles.
Headquartered in Shanghai, Jinko Power is an independent solar power producer with about 3GW of installed capacity and 18,000GWh of cumulative power generation in China. The SGX-listed firm also has a proven track record in developing, financing, and delivering over 4.5GWp of photovoltaic solar projects outside China.
Jopy Chiang, CEO of KIT’s trustee manager Keppel Infrastructure Fund Management, said the agreement was in line with the trust’s target to increase its exposure to renewable energy by up to 25% of KIT’s equity-adjusted assets under management by 2023.
“We will continue to intensify and accelerate our efforts to find like-minded best-in-class partners such as Jinko Power, so that we can grow our presence and footprint in the renewable energy space,” said Chiang.
“This forms a foundational pillar of KIT’s energy transition portfolio, and is a strategic focus of our ESG commitment to support communities by contributing to decarbonisation and providing greener energy sources.”
Charles Bai, president of the international power division at Jinko Power, said: “Jinko Power is committed to the global cause of carbon neutrality through energy transition.”
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