Distributed Solar Power Association Approaches Delhi High Court over MNRE Order on Using ALMM Approved Modules for Open Access & Net Metering Projects – EQ Mag Pro
Honourable Delhi High-Court sought clarification from MNRE as to what provisions they have made to safeguard the ongoing projects at various stages which will get adversely impacted due to sudden extension of the ALMM on projects under net metering and open access also for which MNRE had no answer and they sought time to reply.
The petition was filed by DISTRIBUTED SOLAR POWER ASSOCIATION which is a registered and prominent association of renewable energy developers and IPPs operating in the field of renewable energy from solar, wind and wind solar hybrid for C&I segment and has been actively working on the development of these segments and playing a constructive role in working with various ministries, policy makers and regulatory bodies for the growth of this sector.
Reportedly, MNRE on 13th January 2022 issued an amendment in the office memorandum on “Approved List of Models and Manufactures” [ALMM] where projects under open access and net metering were also included for using ALMM approved solar modules applicable within a period of just 2 and a half month.
Various developers and developer and industry associations approached MNRE to provide clarity whether the same will also be applied on private projects developed for C&I consumers where there is no government subsidy / CFA is provided and to adequate time to be provided for the implementation of such amendment so that the ongoing projects are not impacted.
Upon no response and confirmation in this matter from the ministry the developers were constrained to explore legal remedy and approach the Honourable Delhi High Court to seek relief.
Surprisingly, the counsel appearing on behalf of MNRE also had no answer or instruction as to how the ongoing projects will be protected from such order.
The private developers operating in field of C&I segment installations are already suffering from shortage & delay in supplies and over and above this such sudden amendments have caused artificial increase in the solar modules prices due to issues like cartelization and demand and supply gap within the country, on top of it from 1st of April the duty on the solar modules from Zero will straight raise to 40% which will be highly deterrent to the sector.
The more important question is that more than 4 GW of open access and rooftop projects are under various stages of development, which as per the provisions of regulations get open access / net metering permissions / agreements towards the commissioning of the projects. All these projects will get stuck which will lead to significant financial impact of these consumers and developers.
The developers have stated that C&I projects under open access and net metering should be kept outside the ambit of these order as they are not government funded and / or get subsidies. Further the present supplies of the solar modules are not adequate enough to even cater the government funded project due to which these projects will get a major setback. the country has to achieve a target of around 34 GW of solar installations every year however, the present capacity is just 10 GW and furthermore, not all module manufacturers pass reliability parameters and nor are making modules to be used in such commercial projects.
The foreign module manufacturers have mentioned that though their modules are duly BIS certificated and passed however, since the officials of MNRE cannot travel physically to their manufacturing facilities due to various reasons including travel advisories the listing of their modules could not be done in the ALMM List inspite of proven tract records and BIS certifications and all documents, fee, charges submitted to MNRE for the same for a long time.
Before, making such orders / amendments the MNRE has not done any consultation meeting or has taken inputs from developers and consumers and just on the recommendations of only a few modules manufacturers who also have control on cells have made these amendments in hurry, without going deep and in detailing of the various associated aspects; on of the developer said.
Developers are still hopeful that MNRE which understands the seriousness of the situation will come out with some concrete solution for the resolution of this problem in the larger interest of the development of renewable energy and sector at large and till such time will extend the amendment for minimum 1 year so that the ongoing projects do not land in crisis.
The next date of hearing is on 29th of March 2022 when the Honourable HC will hear the matter and decide.
