EU-MIP Update sept 2017

Sept 2017: Following July EU commission’s disclosure (See our previous post), interested parties have commented.

We understand the following information  :

-Several parties claimed that for mono-products the new variable duty MIP would be even higher than the previous undertaking MIP.
Commission took account of these comments and developed a new quarterly gradual decrease of the variable duty MIP

-Several parties considered that the ending variable duty MIP was also too high.
Commission accepted the proposition that the latest quarter available data should be used as the most appropriate proxy for the ending quarter.
Therefore it sets the final duty MIP at the level of prices in the last quarter available (2nd quarter 2017)
Since last proposal (19th July)  EU commission lowered another 3€cts/Wp on modules MIP and 1€cts/Wp on Cells MIP

The new MIP scheme ``should be`` as follow :

Our analysis:

Though still higher than the real “open market pricing” we believe this new MIP scheme is getting closer to EU PV players expectations.

EU Market might witness cases where Chinese manufacturers wish to reintegrate the UT rather than continuing subcontracting their production to non-Chinese Asian countries.

The new MIP offers visibility on what we believe is an acceptable pricing.
In the case where Chinese Manufacturers, reintegrate the UT and start redelivering EU market from their Chinese manufacturing line, EU PV players will have opportunity to source all the latest innovations (Glass/Glass, bifacial, Black silicon, PERC, Half cells, Shingled …) as most of Chinese manufacturers produce those new products mainly in China and leave their non-Chinese subcontracted factories to focus on standard products.

With 5€cts delta between Multi and Mono, Multi still has a bright future in EU. Especially with Diamond wire, Black silicon, PERC and other new technologies getting mainstream.  This could  also(again) rise-up interest in Mono-like modules  (which still are Multi products at the end). Some large manufacturers continuously invested efforts in that technology.

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