ALMM Order: Delhi High Court rejects DISPA’s plea for interim relief

The HC added that ALMM would be made applicable to projects which apply for open ended and net-metering facilities after 1 October 2022New Delhi: The Delhi High Court has rejected theDistributed Solar Power Association‘s (DISPA) plea for interim relief onrenewableenergy ministry’sALMMamendment Order to include net-metering and open access projects.

The HC added that the requirement of purchase of solar PV cells from ALMM would be made applicable to those renewable energy projects which apply for open ended and net-metering facilities after 1 October 2022.

“In the original order passed on this writ petition on 16 March 2022, the Court had noticed that the apprehension expressed by the petitioner was that the requirement of purchase of solar PV cells from ALMM would be made applicable to existing RE projects which may seek open access and net metering facilities also,” it added.

Delhi HC said that that position was duly clarified with the respondents disclosing that the stipulation as introduced in terms of the office memorandum of 13 January 2022 would only apply to those renewable energy projects which apply for open-ended and net metering facilities after 1 October 2022.

“Prima facie, the Court finds no justification to hold that the aforesaid condition adversely impacts the interests of those projects and which may warrant interim orders being passed. In view of the aforesaid, the prayer for interim relief is rejected,” said the court.

According to a leading solar panel manufacturer, despite Made-in-India solar modules being in high-demand globally, a certain section of stakeholders was trying to delay India’s solar manufacturing ambition.

“The Delhi High Court verdict on ALMM, reaffirms that the government policies for solar manufacturing are in interest of India’s economic growth, job creation, and achieving India’s net-zero target by 2070,” said the panel manufacturer on the condition of anonymity.

In January, the Ministry of New and Renewable Energy (MNRE) amended the Approved Models and Manufacturers (ALMM) of Solar Photovoltaic Modules Order, 2019, to include open access and net-metering projects, and said that it will be applicable from April 1 2022. MNRE has enlisted the eligible models and manufacturers of solar PV cells and modules complying with the BIS Standards in the ALMM list.

“Only the models and manufacturers included in this list will be eligible for use in government projects, government-assisted projects, projects under government schemes and programmes, open access, and net-metering projects, installed in the country,” said the January office memorandum released by the ministry.

While domestic manufacturers applauded the move, the amendment was not received well by solar developers.

Industry associations approached MNRE asking for clarity on the application of the order to private projects developed for C&I consumers. They wanted to know whether adequate time would be provided for the implementation of such an amendment, so that ongoing projects were not impacted.

In the absence of a response from the ministry, developers approached the Delhi HC for clarification.

In March, the Distributed Solar Power Association (DISPA) filed a petition in the Delhi HC following which the court had sought clarification from the ministry on the provisions made to protect ongoing projects, which could be impacted with the extension of ALMM to projects under open access and net metering.

Developers wanted the ministry to keep C&I projects under open access and net metering outside the ambit of the Order as they said such projects were neither government funded nor subsidised.

They had highlighted that the present supply of solar modules was not enough to cater to government funded projects and any shortage in supply would have affected their development.

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.