ReNew Foresees A Dip In Solar Cell Capacity With ALCM

NASDAQ-listed solar module manufacturer ReNew expects a significant shortfall in cell capacity in India with the imposition of the proposed Approved List of Cell Manufacturers (ALCM). The company in its latest investors presentation anticipated a transition in the Indian solar cell market with the introduction of ALCM.

The company said that the proposed decision of the Ministry of New and Renewable Energy (MNRE) will help in eliminating current cell imports into India. However, it also anticipated a shortfall in the Indian market with the introduction of ALCM.

The company in its investors presentation said that the move is likely to pave the way for a significant shortfall in cell capacity. It also put a number against this. It said that the projected demand for solar cells is likely to hit 20GW-30 GW against the current solar cell capacity of around 8 GW.

ReNew, one of the winners of India’s Production Linked Incentives (PLI) of the Indian government has now already started the trial production of solar cells from its proposed 2. 5 GW solar cell plant at Dholera in Gujarat. It said that its current domestic order book stands at 900 MW which included DCR orders for cells and modules, its recent investors presentation revealed.

The proposed ALCM 

MNRE in September 2024 issued a proposal to bring solar cell manufacturing under the List II of the Approved List of Models and Manufacturers (ALMM). List I consists of all the registered solar modules in India. The solar cell industry has now also started using the name ALCM (Approved List of Cell Manufacturers) for the proposed list.

MNRE has batted for bringing ALCM with effect of April 1, 2026. It also mandates the ALMM-listed solar module makers to mandatorily procure solar cells from domestic solar cell makers. However, several solar module makers who are planning to start solar cell manufacturing told Saur Energy that due to the longer time taken to establish solar cell plants, which spans around 20-24 months, it is tough for the Indian solar firms to establish and start production within the time period.

The move is likely to see an under-supply of solar cells if all does not end well. Currently, 13 solar companies that won PLI awards are working to boost solar cell production. Besides this, dozens of other solar cell companies are also planning to start solar cell manufacturing.

ReNew progress report  

ReNew in its latest quarterly result-related documents said that besides starting the trial runs of solar cell manufacturing, it was also able to produce around 2.6 GW of solar modules to date. On the project development side, it said that it has a total portfolio of around 16.3 GW.

This comprised 4.8 GW of wind projects, 5.5 GW of solar projects, and 99 MW of hydro projects. It said that its total commissioned capacity is around 2.4 GW. This comprises 2.4 GW of clean energy projects commissioned in the last 12 months.