Renewable energy industry seeks wider ALMM framework to boost domestic manufacturing

The Approved List of Models and Manufacturers, or ALMM, is a government eligibility system for renewable energy equipment. It controls which manufacturers can supply specified products to government-backed projects. The aim is to ensure that projects use equipment meeting approved requirements while supporting domestic manufacturing.

For example, ALMM-I covers locally made solar modules, while ALMM-II covers solar cells. A separate wind framework lists quality-certified turbines permitted for utility-scale projects. Projects covered by these rules must source the relevant equipment from listed manufacturers rather than any supplier.

The framework is already operational for solar modules and wind turbines. The solar-cell requirement has been deferred until 31 December 2026 because of supply concerns. Industry executives now want similar approval rules for battery storage systems and other critical components, potentially expanding the framework's role across India's renewable supply chain.

ALMM currently applies mainly to solar modules and wind turbines, with separate lists for solar modules, solar cells, and approved wind models. The wind framework covers quality-certified turbines allowed in utility-scale projects. The solar-cell sourcing requirement exists in the framework but has been deferred until 31 December 2026.

The industry wants this approval approach extended beyond finished modules and turbines. At the Bharat Renewable Energy Summit, company executives and investors called for similar measures covering battery energy storage systems and other components. Their request reflects concern about dependence on imported equipment for important parts of the renewable supply chain.

MNRE secretary Santosh Kumar Sarangi said the ministry remains engaged with industry. India has also announced plans to bring wafers and ingots under the framework from June 2028. These changes could make domestic production rules cover a broader set of technologies and manufacturing stages.

India's domestic solar manufacturing base has expanded sharply. The country now has more than 200 GW of module manufacturing capacity and 50 GW of cell manufacturing capacity. These figures describe annual manufacturing capability, while storage figures describe electricity-storage capacity, so they measure different parts of the energy system.

On storage, the Union cabinet approved ₹14,500 crore in viability-gap funding between FY27 and FY31. The scheme is designed to support 92 GWh of additional grid-scale energy storage capacity. That planned addition would equal 170% of India's existing grid-scale storage capacity.

The new storage capacity is intended to help meet a national requirement of 411 GWh by FY32. India also plans to bring wafers and ingots into the manufacturing framework from June 2028. Together, the figures show simultaneous expansion in solar-equipment production and electricity-storage infrastructure.

India wants to reduce import dependence because critical renewable-energy equipment comes from particular foreign geographies, especially China. Heavy reliance on one source can expose projects and manufacturers to supply disruptions, trade restrictions, or changing export policies. China has proposed curbing exports of equipment used to manufacture solar cells and wafers, adding urgency to the issue.

At the Bharat Renewable Energy Summit, reducing dependence on specific geographies was a recurring concern among executives and investors. They argued for wider domestic-manufacturing support, including an ALMM-style system for components and battery storage systems. Such measures would give government-backed projects more access to approved Indian suppliers.

The government also wants a domestic battery-storage ecosystem to strengthen energy independence and security. Its ₹14,500 crore funding scheme for grid-scale storage supports that goal. The broader direction is to diversify supply and build more capability within India, rather than depending heavily on imported equipment for renewable expansion.

Approved-manufacturer rules can strengthen local supply, but they can also narrow the pool of eligible suppliers. If approved companies cannot provide enough solar cells, batteries, or other components, renewable projects could struggle to obtain compliant equipment. Possible effects include delayed construction, slower capacity additions, or pressure on project costs; these are likely consequences rather than outcomes directly reported in the article.

The article provides a concrete example. India deferred the solar-cell sourcing requirement until 31 December 2026 because of concerns over supply constraints. This shows why policymakers may need to balance domestic-manufacturing goals with the immediate availability of equipment.

The government is responding by expanding manufacturing capacity and supporting storage development. It has announced future coverage for wafers and ingots and approved ₹14,500 crore for grid-scale storage. Whether those measures prevent shortages will depend on how quickly domestic suppliers can scale and meet project needs.

The article focuses on ALMM-style rules and government incentives, but it does not provide a full menu of alternatives. In general, India could strengthen supply chains without limiting eligible projects only to approved domestic manufacturers. It could support production through grants, tax incentives, low-cost finance, infrastructure, and research funding.

Another approach would be to diversify imports across several countries while domestic capacity develops. India could also encourage technology partnerships, joint ventures, skills training, and long-term purchase agreements. Recycling batteries and recovering materials could eventually reduce pressure on newly imported inputs, although the article does not discuss recycling.

These options could work alongside ALMM rather than replace it. The article already describes incentives as helping expand solar manufacturing and identifies a ₹14,500 crore storage funding scheme. A mix of open supply, quality standards, domestic support, and diversified sourcing could reduce geographic dependence while lowering shortage risks.

Solar and wind power are variable and unpredictable. Solar generation falls outside daylight hours, while both technologies can change as weather conditions shift. Electricity demand, however, continues throughout the day. Battery energy storage systems help bridge that timing gap by holding electricity when renewable generation is available.

For example, a storage system can charge during periods of strong solar or wind output. It can then discharge electricity when solar power is unavailable, including during non-solar hours. This makes renewable electricity more usable and helps projects deliver power beyond the exact moment it is generated.

Storage also does more than shift electricity across time. The article says it helps stabilize the power grid and strengthen the transmission network. India’s approved scheme targets 92 GWh of new grid-scale storage, supporting a national requirement of 411 GWh by FY32 as renewable generation expands.