Daily News Wrap-Up: ALMM Reimposed from April 1, 2024

IREDA approves ₹242 billion borrowing program for FY 2024-25

April 1, 2024


The Ministry of New and Renewable Energy (MNRE) has notified the implementation of the Approved List of Models and Manufacturers (ALMM) regulation effective April 1, 2024. The new notification, however, eliminates the exemptions for projects under open access and rooftop solar by private parties, announced in the February order. While MNRE did not provide any clarifications on the exemptions, it mentioned that the ALMM order 2019, which was held in abeyance for a year, i.e., the financial year 2023-24, will come into effect on April 1, 2024.

The government-owned lender Indian Renewable Energy Development Agency’s (IREDA) Board, in its recent deliberation, has approved a borrowing program totaling up to ₹242 billion (~$2.9 billion) for the fiscal year 2024-25. The borrowing initiative encompasses various avenues for fund procurement, showcasing IREDA’s strategic approach to financing renewable energy projects in India. The borrowing plan includes a diverse range of instruments, including taxable bonds, green taxable bonds, subordinated tier-II bonds, perpetual debt instruments, green masala bonds, etc.

Gujarat-based power company Torrent Power has won the auction for the purchase of 300 MW of power from wind-solar hybrid energy projects, with a greenshoe option of up to 150 MW from its own distribution unit by quoting ₹3.65 (~$0.044)/kWh. Torrent Power must commission the projects within 24 months of signing the power purchase agreement. The tender for 300 MW of power supply, with a greenshoe option of 150 MW, was announced in January this year by the company’s subsidiary Torrent Power Distribution.

Independent power producer AmpIn Energy Transition has secured an investment from Oesterreichische Entwicklungsbank, the Development Bank of Austria, totaling €25 million (~$26.9 million) in long-term financing. The capital infusion is expected to aid AmpIn Energy Transition in establishing a 1 GW domestic solar cell and module production facility in Odisha and expanding its renewable energy portfolio. In October last year, AmpIn Energy Transition announced a joint venture with Jupiter International to set up a facility to manufacture up to 1.3 GW of solar cells and modules.

The Japan Bank for International Cooperation (JBIC) has entered into strategic loan agreements with NTPC Renewable Energy and NHPC to help develop renewable energy projects across India. The loans for the public sector undertakings are co-financed with Sumitomo Mitsui Banking Corporation and the Bank of Fukuoka, with JBIC providing 60% of the total financing. NTPC Renewable Energy has secured a loan of JPY15 billion (~$99.11 million) to fund its renewable energy projects, with JBIC contributing JPY9 billion (~$59.46 million).