Approved List of Models and Manufacturers

• The Union Ministry of New and Renewable Energy (MNRE) released the first list of photovoltaic module manufacturers at the beginning of March 2021 under the order.
• MNRE has made it mandatory for solar cell and module manufacturers to register under the Approved List of Models and Manufacturers (ALMM).
• The projects bid out under the standard bidding guidelines after April 10, 2021, are required to procure modules from the approved list.

Approved List of Models and Manufacturers (ALMM):

• The ALMM, annonced in 2019, lists eligible models and manufacturers of solar cells and modules complying with the BIS (Bureau of Indian Standards) certification.
• Its aim is to have a quality benchmark for modules and prevent low-quality Chinese manufacturers from dumping their products in India.

Issues with ALMM:

• The ALMM was put in place to ensure the quality of solar products, but it overlaps the existing Bureau of Indian Standards (BIS) certification in many aspects.
• Many stakeholders are not sure about the viability of the whole process.
• Lack of clarity about ALMM means supply uncertainty, limited module choices, no access to newer technologies, and cost increases for developers of large-scale projects.
• This may also result in a hike in solar power tariff prices which may undermine the prospects of solar energy.
• Many developers believe that most Indian module makers have weak balance sheets, which might discourage lenders from funding projects.
• The PV module components comprise 50-55 per cent of the overall project cost and thus, a major part of the project finance goes towards manufacturers.
• LMM protocols introduce new uncertainty in project execution and impact project timelines, making them more prone to penalties and tariff adjustments.
• These may impact the bankability of projects and push up the risk premiums while lending. Developers will be pricing this risk in the solar power tariffs that they quote.

Solar PhotoVoltaic (SPV):

• SPV cells convert solar radiation (sunlight) into electricity.
• A solar cell is a semi-conducting device made of silicon and/or other materials, which, when exposed to sunlight, generates electricity.