Study says renewables can cut costs and boost export competitiveness

Tamil Nadu’s textile industry can save up to Rs 32.50 billion annually by fully shifting to renewable energy, according to a recent study by Climate Risk Horizons and Energy Transition Ventures. The report, titled Fashioning a Net Zero Future for Tamil Nadu’s Textile Sector, assessed industrial energy use, export trends and stakeholder inputs from Tirupur, Coimbatore and Erode.

The study said the state’s textile and apparel sector employs over 8.6 lakh workers in the organised sector, contributes nearly 17 per cent to Tamil Nadu’s manufacturing GVA and accounts for around 27 per cent of India’s textile exports.

Energy expenditure in the sector rose nearly 47 per cent between 2020-21 and 2023-24, while fuel cost intensity increased by around 17 per cent, affecting operating margins. Electricity accounts for nearly 80 per cent of energy expenditure, with petroleum, coal and biomass making up the rest.

According to the report, switching to renewable electricity through green tariffs and open-access mechanisms could reduce electricity costs by up to 41.5 per cent. Even under conservative assumptions, annual savings could exceed Rs 23 billion. Replacing fossil-fuel and biomass-based boilers with clean heating systems could generate additional savings of Rs 15.60 billion to Rs 27.70 billion.

The report also flagged the sector’s carbon footprint, noting that India’s textile industry emits over 12.5 kg of carbon dioxide equivalent per kg of textile produced, higher than several major exporting nations. It also linked rising biomass use in Tamil Nadu’s textile clusters with pressure on regional forest cover.

With Tamil Nadu’s textile exports stagnating at around $7.4 billion since 2017-18, the study said future growth would depend on compliance with global sustainability-linked trade regulations and faster adoption of renewable energy, electrified heating and green industrial infrastructure.