Ministry of New and Renewable Energy Clarifies Applicability of ALMM Order
The Ministry of New and Renewable Energy (MNRE) has issued a clarification regarding the applicability of the Approved Models and Manufacturers of Solar Photovoltaic Modules (ALMM) Order, 2019. The clarification specifically addresses concerns raised by stakeholders in the renewable energy sector, particularly those involved in open access and net-metering projects.
The ALMM Order, which was introduced to regulate the quality of solar photovoltaic modules in large-scale solar projects, requires manufacturers to be listed on an approved list maintained by MNRE. However, there were concerns about the applicability of this order to projects that had already received approvals before the introduction of the ALMM Order.
In an office memorandum dated October 14, 2024, the MNRE stated that the ALMM Order would not be applicable to renewable energy projects that had already obtained critical approvals before the cut-off date of October 1, 2022. These critical approvals include in-principle approval, no objection certificate (NOC), government orders, or any other relevant approvals sought from entities such as distribution licensees, state transmission utilities (STUs), state load dispatch centres (SLDCs), or other pertinent state and central agencies.
The memorandum further reiterated that this exemption applies to projects in line with the respective state or Union Territory policies or electricity regulatory commission rules. The clarification aims to alleviate concerns and provide clarity to developers and stakeholders involved in open access and net-metering renewable energy projects.
The MNRE’s clarification brings much-needed relief to ongoing projects that were uncertain about the applicability of the updated ALMM regulations. Energy experts have lauded this move, considering it a positive step towards stabilizing a regulatory environment that had undergone significant changes in 2022.
Importantly, the clarification also extends to projects with existing applications for open access or net-metering, in line with the rules of the Central Electricity Regulatory Commission (CERC) or the respective State Electricity Regulatory Commissions (SERCs). Hence, a wide range of renewable energy developers, including those engaged in large-scale solar, wind, and other renewable energy projects, are expected to benefit from this development.
The renewable energy sector in India has been growing at a rapid pace, overcoming various regulatory and economic challenges. The government’s supportive policies and efforts to streamline regulations are crucial in sustaining this growth and attracting high investments in the sector.
Moving forward, stakeholders in the renewable energy industry can expect more such clarifications and amendments to ensure a conducive and predictable regulatory environment that encourages the rapid adoption of cleaner sources of energy.
Conclusion
The MNRE’s recent clarification regarding the applicability of the ALMM Order brings relief to stakeholders involved in renewable energy projects. By exempting projects that had already obtained key approvals before October 1, 2022, the MNRE has addressed the concerns raised by developers and industry experts. This move is expected to boost confidence in the renewable energy sector and support ongoing projects in a more stable regulatory environment. As India aims to increase its renewable energy capacity and reduce its dependence on fossil fuels, such clarifications play a crucial role in fostering growth and innovation in the sector.
