| Introduction: Define the ALMM list. Body: Highlight the reasons behind the implementation of the list and its effect on India’s solar power capacity and trade relations. Conclusion: Way forward |
Ministry of New and Renewable Energy (MNRE), in its recent order, has released notification of an ‘Approved List of Models and Manufacturers of Solar Photovoltaic [PV] Modules’, also called the ALMM list. This list consists of manufacturers who “are eligible for use in Government Projects/Government assisted projects/ projects under Government schemes & programs including projects set up for sale of electricity to the Central and State Governments.
Reasons behind the implementation of the ALMM list
- Boosting Domestic Manufacturing: India is overwhelmingly import-dependent to meet its demand for solar cells and modules — with China and Vietnam being the country’s major suppliers. ALMM aims to promote domestic manufacturing by ensuring that only approved domestic modules are used in certain projects. This can create jobs and reduce dependence on imports.
- Quality Control: A quality control check for solar modules used in government projects can be performed by the ALMM. It attempts to guarantee long-term durability and project efficiency by establishing minimum performance benchmarks.
- Consumer Protection: Through the maintenance of a list of authorized models and manufacturers, the government shields consumers and investors from inferior or counterfeit goods, guaranteeing the expected level of performance and longevity. This cultivates trust in the solar energy sector, fostering increased investment.
Potential Effects on India’s Solar Power Capacity and International Trade Relations
- Impact on Solar Power Capacity: The Government has launched a PLI scheme in the Union Budget to scale domestic manufacturing of the entire solar supply chain — from polysilicon to solar modules. The ALMM might encourage domestic production of solar PV modules and cells by giving qualified domestic manufacturers preference. This might result in higher domestic production capacity and the creation of jobs related to solar energy.
- International Trade Relations: Countries that have sold solar modules to India in the past may view the strict application of ALMM as a trade block. This could strain international trade relations and lead to retaliatory measures from affected countries, particularly China & Vietnam. Changes in India’s procurement policies and standards for solar PV modules and cells could influence global supply chain dynamics in the solar energy industry.
Conclusion
India’s desire to increase solar power is primarily due to the government’s ambitious objective of 500 GW of installed capacity from non-fossil sources by 2030. According to the IEA, India will grow its electricity demand at the quickest rate among large nations through 2026. This is a result of both robust economic growth and rising demand for goods designed to avert catastrophic weather.
