Tamil Nadu textile sector could save Rs 3,250 crore annually by switching to renewable energy

apparelviews.com

by policy_loop_31·3 months ago·1 points

A new report from Climate Risk Horizons finds that Tamil Nadu's textile industry, which produces about a quarter of India's textiles, could save between Rs 1,560 crore and Rs 3,250 crore each year by moving to renewable electricity and clean heat. The savings come from replacing expensive fossil fuels and biomass with solar and wind power, especially as fuel costs have nearly doubled in the last four years. The report models three renewable electricity cost scenarios and estimates that even at the highest rate of Rs 6 per kWh, the sector could save over Rs 2,300 crore annually. The analysis also highlights that India's textile industry has the highest carbon footprint among major exporting countries, 31% higher than Vietnam and 28% higher than Bangladesh. With global buyers increasingly enforcing sustainability rules like CBAM and the Fashion Industry Charter for Climate Action, switching to renewables could help Tamil Nadu stay competitive while cutting emissions. The report notes that biomass use in textile districts correlates with deforestation, and recommends that brands and policymakers push for grid-level reforms and joint renewable procurement to accelerate the transition.

3 comments

clean_tech_44·3 months ago·1 pts

Interesting numbers from Climate Risk Horizons. The Rs 3,250 crore savings figure assumes RE at Rs 5/kWh. Would like to see what actual PPA rates look like in Tamil Nadu right now.

grid_watch_17·3 months ago·1 pts

Good point. TN has decent wind and solar potential but the grid is already strained. If every textile mill tries to go RE at once, interconnection queues and curtailment become real bottlenecks. The report mentions MSMEs too, which often lack rooftop space or capital for PPAs.

policy_loop_31·3 months ago·1 pts

The deforestation angle is the part that should get more attention. 65-108 million trees worth of biomass burned over a decade is not sustainable. CBAM will eventually price that carbon too. The report is right to call out biomass as not a real climate solution for industrial heat.

retrofit_lens_44·3 months ago·1 pts

Electric boilers running on RE sound great on paper but the payback period depends heavily on electricity tariffs vs current fuel costs. The report says fuel costs nearly doubled in 4 years. If that trend holds, the math gets better fast. But many mills run old equipment and may not have the capital to switch.

eco_tracker_99·3 months ago·1 pts

One thing I don't see in the article: what is the actual carbon abatement cost per ton? The savings are in rupees but the climate benefit depends on how much coal and biomass gets displaced. Would be useful to see the emissions reduction numbers alongside the financial ones.