Replacement scheme for MIP proposed by European Commission

Facebook
Twitter
LinkedIn
Reddit
Email
A document released by the Trade directorate on Wednesday night proposed a schedule of prices for the next 14 months. Credit: Yingli.

The European Commission has proposed an alternative floor price setting mechanism to replace the minimum import price’s (MIP) current linkage to Bloomberg prices.

The price level has been criticised for being too far above global market prices for solar. The Bloomberg prices are calculated in US dollars making the MIP level susceptible to currency fluctuations.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

A document released by the Trade directorate on Wednesday night proposed a schedule of prices for the next 14 months in an effort to offer some transparency.

“This proposal from DG Trade looks to divorce the price of solar panels from reality,” said Dr Christian Westermeier, president, SolarPower Europe. 

“The European Commission clearly states that market prices recorded in Q1 2017 will only be reached in the EU in September 2018. This implies a full time lag of 1.5 years for European companies to benefit from the true market price of solar. What is even worse, is that the MIP level proposed for July 2018 is still well above today's world market prices in US$/Watt. This is not the way to bring the energy transition in a cost-effective manner to the citizens of Europe.”

EU ProSun, the organisation that brought the original complaint about Chinese solar trade practices in 2012, has its own concerns about the new proposals.

“There's a simple but clear legal requirement for minimum import regulations; the prices have to be non-injurious to Union manufacturers,” EU ProSun president Milan Nitzschke told PV Tech. “Therefore I don't believe that price levels as now disclosed by the Commission will last.

“The new system allows better enforcement, it's better to control and more predictable and the differentiation for multi and mono products is more accurate. [However] the prices proposed of course reach injurious levels, which EU manufacturers will challenge during further proceedings,” he added.

Nitzschke also questioned the validity of some market pricing data drawing attention to an investigation in Taiwan. The Taiwanese Fair Trade Commission is investigating two price indexes after its PV association complained that prices were below the cost of production and could lead to market distortions and misconceptions. 

21 March 2024
This special webinar will look at one of the most important changes impacting PV manufacturing today; how to establish and sustain new facilities around the world. For more than two decades, policy-makers have grappled with the challenges of nurturing domestic manufacturing sectors. Many countries have tried to create domestic sectors: Japan, Taiwan, South Korea, India, Europe and the U.S. But success stories have been rare. Mistakes seem to be repeated. And all the while, Chinese dominance of the industry has only increased. However, in the past 2-3 years, new drivers have emerged that suggest the dream of a global PV manufacturing ecosystem could be a reality. Join us as we shed light on this.
26 November 2024
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
March 12, 2024
Frankfurt, Germany
Upcoming Webinars
March 13, 2024
9am EDT / 1pm GMT / 2pm CET
Solar Media Events
March 19, 2024
Texas, USA