Waaree Energies, Premier Energies, Emmvee shares rise 4% each; here's why

Shares of Waaree Energies Ltd, Premier Energies Ltd and Emmvee Photovoltaic Power Ltd climbed 4 per cent each in Tuesday's trade after Ministry of New & Renewable Energy (MNRE) said there will be no blanket extension of ALMM List II beyond June 1, even as there will be protection of investments in projects already made. 

The ministry explained that all the net-metering projects and Open Access RE power projects, which get commissioned on or after June 1, will have to mandatorily source their solar PV modules from ALMM List-I and solar PV cells from ALMM List-II. The move on mandating ALMM-compliant cells will essentially build a protected and prioritised market for domestic production.

Following the development, shares of Waaree Energies rose 3.92 per cent to hit a high of Rs 3,102. Premier Energies gained 4.12 per cent to Rs 1,024.75. This stock was also in focus as Quant Mutual Fund, Nomura and Smallcap World Fund INC were seen buying Premier Energies shares in block deals on Monday, triggered by Surenderpal Singh Saluja and Manjeet Kaur Saluja's stake sales.

Emmvee Photovoltaic Power Ltd gained 4.25 per cent to Rs 302.35.  

India introduced ALMM-I effective April 1 2024, considering the strong module capacity growth in FY24. Under ALMM-I, domestic modules were compulsory for all solar projects in the country, except for utility-scale projects awarded before March 10, 2021, and open access and net metering projects that
had secured key approvals before October 2022. 

Later the government proposed to implement ALMM-II, which mandates the use of domestic cells in locally assembled modules, from June 2026, effectively making DCR modules mandatory for all solar capacities.

"The implementation of ALMM List-II for solar PV cells from Jun’26 has spurred the ongoing expansion of cell manufacturing capacity by module manufacturers in India. Accelerating its push for creating domestic manufacturing capacities across the solar value chain, the GoI has now mandated the use of India-made wafers under the ALMM beginning 1st Jun’28," JM Financial noted in an April note.

MNRE said it engaged with the industry representatives, including those from among the solar PV manufacturers as well as those from among the solar power developers, on the said subject matter, and said there is a broad consensus that policy stability will maintained to ensure long-term investor confidence in the solar PV manufacturing sector.

In the same breadth, the ministry said the actual investments already made by the RE power developers also needed protection, which was widely agreed upon by all. 

"Bonafide cases where solar modules have already arrived at the project sites, installation completed but not commissioned, or effective steps have been undertaken by the RE power developers towards grounding the projects, merit some protection of investment already made, on a case-by-case basis," MNRE said.