Recent news from the Union Ministry of New and Renewable Energy (MNRE) reveals the introduction of their first list of photovoltaic module manufacturers for India. MNRE is now mandating registration under their novel Approved List of Models and Manufacturers (ALMM). This strategy is the first phase towards declining solar imports from abroad, thus enhancing domestic solar cell and module manufacturing within India.
About ALMM and its Potential Challenges
The core purpose of the ALMM initiative is to establish a quality benchmark for solar modules and cells. Although it was initially announced in 2019, manufacturers who want to supply for government-owned solar projects must register to it. Only those models and manufacturers included in the ALMM list will be eligible for use in projects under government schemes and programs installed in India.
However, some argue that the lack of clarity about ALMM can pose challenges. Uncertainty about supply, limited module choices, absence of access to new technologies, and possible cost increases could all potentially impact the bankability of solar projects. Some even fear increased solar power tariff prices that could undermine future prospects of solar energy.
BIS and ALMM Overlap
Another point of contention is the overlap between ALMM and the existing Bureau of Indian Standards (BIS) certification, creating compliance burden for domestic manufacturers. While the BIS certification governs product quality, ALMM focuses on processes and manufacturing facilities.
Supply-side Bottlenecks and Associated Issues
One potential issue with the ALMM implementation is that it may discourage foreign suppliers from investing in the Indian market, resulting in supply bottlenecks. As India’s domestic market is not yet fully self-reliant, this can significantly affect project developers.
Growth in Domestic Capacity of Solar Power in India
India’s journey towards becoming the world’s third-largest solar market has seen significant growth since 2014. However, much of this growth has relied on imported solar equipment, with nearly 80% of solar inputs and components coming from China.
India’s Commitment to Solar Energy
India’s commitment to solar energy was emphasized at the Paris climate summit in 2015 when the government pledged to install 175 GW of renewable power by 2022, including 100 GW of solar power. The National Solar Mission is a key initiative promoting sustainable growth and addressing India’s energy security issues.
Way Forward
To overcome challenges, it is suggested that ALMM and BIS certification be merged into a single-window process. Financial measures are needed to fund solar projects, with green bonds, institutional loans, and clean energy funds playing vital roles. Additionally, promoting research and development within the renewable energy sector, specifically in storage technology, should be prioritized.
