Breather For Indian Solar Power Project Developers

• Indian Power Minister RK Singh says he has decided to provide 2-year exemption from sticking to ALMM alone
• According to him, India had around 70 GW solar capacity under implementation but domestic module manufacturing capacity of over 500W modules is only 10 GW
• The ALMM has been challenged in the WTO, he added, but the administration plans to fight it there

Solar power project developers in India can breathe easy for now, as the Ministry of Power has decided to allow them to source their solar modules from anywhere and not stick to those listed in the Ministry of New and Renewable Energy's (MNRE) Approved List of Models and Manufacturers (ALMM) alone, for the next 2 years.

Speaking at an event hosted by local media group Business Today, Indian Power Minister RK Singh said, "I put up total barrier, ALMM where no Chinese company has been listed so they can't export. At that time, Niti Aayog said it was a complete barrier, I said it was necessary. But I have expanded the bidding so fast that my existing domestic capacity is not able to meet it."

According to the minister, India has about 70 GW of solar under implementation currently and the existing manufacturing capacity is not enough to cater to this demand since manufacturing capacity of modules of over 500W output is only around 10 GW.

"If I depend only on this, it will take 7 years. I can't wait for 7 years so I have just decided to relax this ALMM for 2 years. Incidentally some countries have gone against ALMM to the WTO. We will fight it there," he added. His entire statement can be heard on Business Today's website.

The ALMM includes a list of modules approved by the MNRE that can be used for all government projects and also for open access and net-metered facilities. According to Mercom India, on January 25, 2023, the ALMM list I contained 80 module manufacturers with 21.68 GW module capacity.

While an official order communicating this exemption is yet to be issued, it should be a reason for developers to rejoice since the ALMM and the Basic Customs Duty (BCD) on imported cells (25%) and modules (40%) have become challenges for them as their options to source modules become limited, pushing up their project costs (see India Installed Close To 14 GW New Solar Capacity In 2022).

It is akin to US President Joe Biden providing a 2-year relief from imposing anti-circumvention duties on companies shipping their products to the US from Southeast Asian nations to enable more consistent solar module supply to the country (see Biden Saves the Day For US Solar Industry).