Textile spinning mills in Gujarat are battling production and cost pressures due to reduced availability of renewable energy. Over the past 20 months, grid authorities have curtailed 50–70% of wind, solar and hybrid power generation during peak periods.
The cuts have forced mills to rely on more expensive power sources while their renewable assets remain underutilised.
The Spinners’ Association of Gujarat said the curbs are undermining investments made under the state’s growth plans. It noted that wind and solar projects were set up after approvals and grid studies but are now facing restrictions despite prior capacity clearances by Gujarat Energy Transmission Corporation.
While grid electricity costs in Gujarat can range from Rs. 6 (US $0.065) to Rs. 9 (US $ 0.097) per unit for commercial users, solar power can be generated at an effective cost of Rs. 2 (US $0.022)–Rs. 3 (US $0.032) per unit over its lifespan. This could result in long-term cost reductions of 70%-80% on energy bills.
The state’s spinning industry, with over 100 mills concentrated in Surat, Ahmedabad and Rajkot, contributes nearly 25% to India’s yarn production.
Gujarat remains a major renewable energy hub, with over 64% of its power consumption coming from clean sources and accounting for 27.2% of India’s wind energy, even as curtailments persist.
