Textile units in Tamil Nadu with solar projects for captive consumption have opposed a directive by Tamil Nadu Green Energy Corporation (TNGECL) to use only solar modules included in the Approved List of Models and Manufacturers (ALMM).

The Tamil Nadu Spinning Mills Association has written to the Ministry of New and Renewable Energy (MNRE) urging the withdrawal of the directive. It has threatened legal action if the demand is not met.

The Non-Conventional Energy Sources (NCES) wing under Tamil Nadu Generation and Distribution Corporation (TANGEDCO) recently mandated the use of only ALMM-approved solar modules in the solar projects to be commissioned and grid tie-up approval to be granted after due verification.

According to documents available with Mercom India, Kaiser Green Energy, and Armstrong Spinning Mills were asked by TNGECL to use only ALMM-approved modules in response to their applications to wheel power for captive use and under the Intra-state Open Access System.

Urging the withdrawal of the mandate for private entities, the spinning mills association wants the MNRE Secretary to rescind the Chief Engineer-NCES’ communication and allow the import of solar modules for their projects.

The association requested the MNRE to keep private entities out of the ALMM mandate, enabling them to wheel solar power for captive use. The industry emphasized that the industry is heavily dependent on captive solar power due to the unreliability of utility power supplied by the distribution companies.

Association chief advisor K Venkatachalam argued that the ALMM list only applies to government-related projects, but TANGEDCO has placed restrictions on private entities. TANGEDCO said those not complying with the ALMM mandate will not be issued connectivity. “The measure will likely lead to huge losses as many companies have already placed orders from other countries. Different companies are at various stages of the establishment of captive solar projects. While some imports are stuck at Indian ports, some have already cleared import duties and are about to establish the system in a few months.”

Captive solar power generators find it cost-efficient to import solar modules. The textile industry remains a major contributor to renewable energy generation in Tamil Nadu, accounting for 75% of installed capacity.

The association said importing modules also guarantees them higher efficiency modules at a cost-efficient margin. “There will be a nearly 30% increase in costs if we rely on domestic procurement,” said Venkatachalam.

However, a senior official from NCES maintained that the ALMM mandate applies to private and government entities. “There was an exception for a year for private entities, but now it applies to all entities, effective April 1, 2024. We have issued the order in compliance with MNRE regulations.”

The ALMM was reimposed on April 1, 2024, after the MNRE kept the mandate in abeyance for a year.