TN textile units with captive solar projects oppose ALMM directive

30 Aug 2024 CW Team

The Non-Conventional Energy Sources (NCES) wing of Tamil Nadu Generation and Distribution Corporation (TANGEDCO) recently mandated that only ALMM-approved solar modules can be used for solar projects that are to be commissioned, with grid tie-up approvals to be granted only after verification. Companies such as Kaiser Green Energy and Armstrong Spinning Mills were instructed by TNGECL to adhere to the ALMM-approved module requirement in their applications to wheel power for captive use under the Intra-state Open Access System.

The Spinning Mills Association has urged the MNRE Secretary to revoke the Chief Engineer-NCES?s directive and permit the importation of solar modules for private projects. They argue that the ALMM mandate should not apply to private entities, which rely heavily on captive solar power due to the unreliable power supply from distribution companies. The association?s chief advisor, K Venkatachalam, emphasised that the ALMM list was originally intended for government-related projects, but TANGEDCO has extended its restrictions to private companies as well. TANGEDCO has stated that entities not complying with the ALMM mandate will be denied connectivity.

The association warned that this measure could lead to significant financial losses for companies that have already placed orders for solar modules from other countries. Many companies are at various stages of establishing captive solar projects, with some imports stuck at Indian ports and others ready to be installed after clearing import duties.

Textile units prefer importing solar modules due to their cost efficiency and higher performance. The textile industry, which accounts for 75% of installed renewable energy capacity in Tamil Nadu, argues that relying on domestic procurement would increase costs by nearly 30%.

However, a senior NCES official maintained that the ALMM mandate applies to both private and government entities. "There was a temporary exception for private entities, but as of April 1, 2024, the mandate applies universally. We are enforcing this order in accordance with MNRE regulations," the official stated. (Mercom)

Textile units in Tamil Nadu, equipped with solar projects for captive consumption, are opposing a recent directive from the Tamil Nadu Green Energy Corporation (TNGECL) that mandates the use of solar modules listed in the Approved List of Models and Manufacturers (ALMM). The Tamil Nadu Spinning Mills Association has urged the Ministry of New and Renewable Energy (MNRE) to withdraw this directive and has threatened legal action if their request is not met. The Non-Conventional Energy Sources (NCES) wing of Tamil Nadu Generation and Distribution Corporation (TANGEDCO) recently mandated that only ALMM-approved solar modules can be used for solar projects that are to be commissioned, with grid tie-up approvals to be granted only after verification. Companies such as Kaiser Green Energy and Armstrong Spinning Mills were instructed by TNGECL to adhere to the ALMM-approved module requirement in their applications to wheel power for captive use under the Intra-state Open Access System. The Spinning Mills Association has urged the MNRE Secretary to revoke the Chief Engineer-NCES?s directive and permit the importation of solar modules for private projects. They argue that the ALMM mandate should not apply to private entities, which rely heavily on captive solar power due to the unreliable power supply from distribution companies. The association?s chief advisor, K Venkatachalam, emphasised that the ALMM list was originally intended for government-related projects, but TANGEDCO has extended its restrictions to private companies as well. TANGEDCO has stated that entities not complying with the ALMM mandate will be denied connectivity. The association warned that this measure could lead to significant financial losses for companies that have already placed orders for solar modules from other countries. Many companies are at various stages of establishing captive solar projects, with some imports stuck at Indian ports and others ready to be installed after clearing import duties. Textile units prefer importing solar modules due to their cost efficiency and higher performance. The textile industry, which accounts for 75% of installed renewable energy capacity in Tamil Nadu, argues that relying on domestic procurement would increase costs by nearly 30%. However, a senior NCES official maintained that the ALMM mandate applies to both private and government entities. There was a temporary exception for private entities, but as of April 1, 2024, the mandate applies universally. We are enforcing this order in accordance with MNRE regulations, the official stated. (Mercom)

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