The Ministry of New and Renewable Energy plans to introduce a policy akin to the Approved List of Models and Manufacturers, or ALMM, for solar modules, but focused on solar cells. This initiative aims to enhance the quality of solar cells and simultaneously support domestic manufacturing.
“ALMM for solar cells is in the pipeline. The work is on and very shortly we will take a considered decision on that,” said Pralhad Joshi, minister of new and renewable energy at the PowerGen event on Monday.
What Is ALMM
The Approved List of Models and Manufacturers by the Ministry of New and Renewable Energy in India includes only vetted solar PV modules and manufacturers. This list ensures that only high-quality, reliable solar modules are used in government and government-assisted projects and programs.
The ALMM list was first introduced on March 10, 2021. While the list was put on hold in fiscal 2024 due to quality concerns, it was reimposed in April 2024
Potential Benefits Of Inclusion
Potential inclusion of solar cells in a list like the ALMM aligns with India's goal to increase its solar cell manufacturing capacity in order to reduce the country's solar cell and module import dependency and boost local manufacturing of the same.
ALMM certification would guarantee the reliability and performance of solar cells, thus reducing the risk of premature failure. Inclusion of solar cells under a list like the ALMM would also incentivise manufacturers to invest in research and development, leading to advancements in solar technology in India.
Current Capacity
India's total solar module capacity stood at 72 gigawatts as of fiscal 2024, which is sufficient for meeting domestic demand. India's solar cell production capacity, on the other hand, only stood at 8.1 gigawatts, which is not enough for domestic demand.
However, major companies in the solar manufacturing space are increasing their solar cell capacity. As per Premier Energies' draft IPO papers, India's solar cell manufacturing capacity has the potential to grow to 60 GW by fiscal 2028.
The Adani Group aims to establish a 10 GW solar module capacity by 2025, with 2 GW of solar cell capacity already operational. Waaree Energies Ltd. plans to boost its solar cell capacity to 11.4 GW by 2025-26. Premier Energies intends to use its IPO proceeds to build a 4 GW solar cell facility in Hyderabad. Tata Power will commission a 4 GW solar cell line this fiscal. Renew Energy Global is set to create a 5 GW solar cell manufacturing plant, and Reliance Industries plans to complete its 20 GW solar manufacturing ecosystem, including solar cells, by 2025.
There are currently very few integrated solar cell and module manufacturing plants in India. Of the current top 10 solar module makers in the country, only three companies have integrated facilities—Adani Enterprises' Mundra Solar, Premier Energies and Tata Power Solar.
Current Import Dependency
Imports of solar cells in 2023 stood at 15.6 GW, up 169% from 5.8 GW in 2022. Exports of solar cells increased significantly to 286.3 megawatt from meager 10 MW in 2022. This data not only implies the low manufacturing capacity of India in the space but also indicates that players are currently importing solar cells due to the cost differences between domestic and imported prices from Southeast Asian producers.
A joint report by Institute for Energy Economics and Financial Analysis and JMK Research & Analytics projects that import dependency will fall from 51% in fiscal 2022 to about 6% by fiscal 2028 as domestic production scales up.
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