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Centre set to expand ALMM to solar cells
POWER & RENEWABLE ENERGY

Centre set to expand ALMM to solar cells

Officials familiar with the matter have indicated that the Ministry of New and Renewable Energy is actively considering bringing solar cell imports under the Approved List of Modules and Manufacturers (ALMM) in an effort to reduce reliance on Chinese supplies and strengthen domestic manufacturing. Union Minister for New and Renewable Energy, Pralhad Joshi, speaking to reporters, mentioned that the proposal to include solar cells in the ALMM is being reviewed, with a final decision expected soon. This move aligns with the government's broader strategy to boost domestic solar manufacturing and limit the influence of Chinese imports in the sector.

Currently, the ALMM, introduced in 2021, only covers solar modules, restricting participation in government-backed projects to manufacturers producing modules within India. Although the framework was temporarily suspended until the 2023-24 fiscal year due to concerns over insufficient module supply affecting solar capacity growth, it was reinstated in April 2024, now permitting only Indian-made modules for government-supported projects. With an approved capacity of 54 GW under the ALMM, the potential inclusion of solar cells is seen as a crucial step in scaling up domestic production as India positions itself as a leader in clean energy manufacturing.

India has ambitious renewable energy targets, aiming to achieve 500 GW of installed non-fossil fuel power generation by 2030, of which 292 GW is expected to come from solar power. Although India's current solar cell manufacturing capacity stands at over 6 GW, expanding this capacity is considered vital to meet the growing demand for solar energy and reduce dependence on imports.

In addition to potentially extending the ALMM to include solar cells, the government has introduced several other measures to support domestic solar manufacturing, including high import duties on modules and cells and the implementation of Production Linked Incentive (PLI) schemes aimed at attracting investment into the solar manufacturing ecosystem to meet both domestic and export demands.

At the POWERGEN India 2024 event, the union minister also highlighted India's remarkable achievements in renewable energy, noting that the country's installed renewable energy capacity had increased from 75.52 GW in March 2014 to 203 GW by 2024, marking a 165% rise in just a decade. He remarked that India's progress serves as a model for other nations transitioning to a low-carbon economy and reaffirmed the government's dedication to expanding renewable energy, improving energy efficiency, and fostering innovation across the energy sector.

The minister also encouraged global investors and companies to explore opportunities in India's renewable energy landscape, particularly in the green hydrogen and renewable energy sectors, and highlighted India's growing role in the global energy transition. He stressed the importance of international collaboration in accelerating the shift to green energy, referencing platforms like POWERGEN India and Bharat Electricity as key drivers of this transformation.

Officials familiar with the matter have indicated that the Ministry of New and Renewable Energy is actively considering bringing solar cell imports under the Approved List of Modules and Manufacturers (ALMM) in an effort to reduce reliance on Chinese supplies and strengthen domestic manufacturing. Union Minister for New and Renewable Energy, Pralhad Joshi, speaking to reporters, mentioned that the proposal to include solar cells in the ALMM is being reviewed, with a final decision expected soon. This move aligns with the government's broader strategy to boost domestic solar manufacturing and limit the influence of Chinese imports in the sector. Currently, the ALMM, introduced in 2021, only covers solar modules, restricting participation in government-backed projects to manufacturers producing modules within India. Although the framework was temporarily suspended until the 2023-24 fiscal year due to concerns over insufficient module supply affecting solar capacity growth, it was reinstated in April 2024, now permitting only Indian-made modules for government-supported projects. With an approved capacity of 54 GW under the ALMM, the potential inclusion of solar cells is seen as a crucial step in scaling up domestic production as India positions itself as a leader in clean energy manufacturing. India has ambitious renewable energy targets, aiming to achieve 500 GW of installed non-fossil fuel power generation by 2030, of which 292 GW is expected to come from solar power. Although India's current solar cell manufacturing capacity stands at over 6 GW, expanding this capacity is considered vital to meet the growing demand for solar energy and reduce dependence on imports. In addition to potentially extending the ALMM to include solar cells, the government has introduced several other measures to support domestic solar manufacturing, including high import duties on modules and cells and the implementation of Production Linked Incentive (PLI) schemes aimed at attracting investment into the solar manufacturing ecosystem to meet both domestic and export demands. At the POWERGEN India 2024 event, the union minister also highlighted India's remarkable achievements in renewable energy, noting that the country's installed renewable energy capacity had increased from 75.52 GW in March 2014 to 203 GW by 2024, marking a 165% rise in just a decade. He remarked that India's progress serves as a model for other nations transitioning to a low-carbon economy and reaffirmed the government's dedication to expanding renewable energy, improving energy efficiency, and fostering innovation across the energy sector. The minister also encouraged global investors and companies to explore opportunities in India's renewable energy landscape, particularly in the green hydrogen and renewable energy sectors, and highlighted India's growing role in the global energy transition. He stressed the importance of international collaboration in accelerating the shift to green energy, referencing platforms like POWERGEN India and Bharat Electricity as key drivers of this transformation.

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