- Recently, the Union Ministry of New and Renewable Energy (MNRE) has released the first list of photovoltaic module manufacturers in India.
- MNRE has made it mandatory for solar cell and module manufacturers to register under the Approved List of Models and Manufacturers (ALMM) – an initial step towards reducing India’s dependence on solar imports and self-reliance.
- However, given the capacity constraints for domestic manufacturers, ALMM may pose near-term challenges for the Indian developers for planning the procurement of imported photovoltaic modules.
Important points:
- The ALMM lists eligible models and manufacturers of solar cells and modules complying with the BIS (Bureau of Indian Standards) certification
- It was announced in 2019.
- It aims to have a quality benchmark for modules and prevent low-quality Chinese manufacturers from dumping their products in India.
- Enlisting in ALMM is mandatory for manufacturers supplying to the government-owned solar projects.
- Only the models and manufacturers included in this list shall be eligible for use in projects under Government schemes & Programmes, installed in the country.
- Further, the word “Government” includes Central Government, State Government, Central Public Sector Enterprises, State Public Sector Enterprises and Central and State Organizations/Autonomous bodies.
Domestic Capacity of Solar Power in India:
- There has been a significant progress in solar capacity addition since 2014, with India progressively emerging as the world’s third largest solar market.
- However, India’s solar story is largely built over imported products.
- The domestic solar equipment manufacturing industry has largely failed to capitalise on the opportunity.
- Nearly 80% of the solar inputs and components are imported from China.
- The reason for this is that Solar cell manufacturing is a complicated process that is technology and capital intensive and it also upgrades every 8-10 months.
- Further, the global market of solar wafer and ingot manufacturing is dominated by China, who uses anti-competitive measures to dump cheap solar equipment into India.
Way Forward
- ALMM and BIS certification could have been better managed by combining these two objectives and making it a single-window process.
- Strong financial measures are required to finance the solar projects, innovative steps like green bonds, institutional loans and clean energy funds can play a crucial role.
- Promotion of research and development in the renewable energy sector, especially in storage technology.
- Proper mechanism should be provided to tackle China’s dumping of solar equipment.
- Framework to avoid unnecessary delays in policy decision making and implementation. India needs a Solar Waste Management and Manufacturing Standards Policy.
SOURCE: THE HINDU,THE ECONOMIC TIMES,MNT