The MIP debacle continues to rumble on. An inflation of up to 30% on module price creates a significant increases in downstream project costs causing delays to projects and the shelving of others. Fingers crossed this price inflation will only last for another 12 months and then the market can set the price of modules, something that hasn’t been possible for the last 4 years.
The European Commission has approved replacing the current Minimum Import Price (MIP) for module imports from China with a new reduced price on a sliding scale mechanism, despite receiving almost negligible support from member states. The price of the original proposal had been lowered by two cents at the start of the week in response to concerns expressed by the industry, but the new lower price would still keep affected solar panels roughly 30% higher than the current market price, according to Dr Christian Westermeier, president of trade group SolarPower Europe. James Watson, CEO of SolarPower Europe, also said: “This measure is the opposite of what we need to drive a cost-effective energy transition.”