West Bengal’s rise needs new energy, where is it?

With a new government taking shape in West Bengal, one of its defining challenges will be reviving the state’s economic momentum.

- Aparna Roy

Despite its strategic location, major ports, freight corridors and access to eastern and northeastern markets, West Bengal has steadily fallen behind states such as Gujarat, Maharashtra, Karnataka and Tamil Nadu in attracting large-scale industrial investment. Even as India positions itself as a global manufacturing alternative amid shifting geopolitical supply chains, Bengal risks missing the country’s next industrial wave.

At the heart of this challenge lies energy. No industrial economy can grow without reliable, affordable, and future-ready power systems. The ongoing global energy volatility has once again exposed how deeply economic growth, industrial competitiveness and national resilience are tied to energy itself. Prime Minister Narendra Modi’s recent call for responsible energy use reflects a broader reality confronting economies worldwide: Energy security is no longer a utility concern; it is central to economic stability, industrial growth and geopolitical resilience. For Bengal, reimagining its energy architecture becomes one of the most important determinants of its economic revival.

Bengal’s electricity system remains heavily exposed to ageing thermal assets, coal-linked vulnerabilities, and a power architecture built for the past. Bengal’s peak power demand touched nearly 12,500 MW in 2025 and is projected to rise as manufacturing, logistics, metro systems, cold chains, ports and data centres become increasingly electricity intensive. But the state’s energy mix remains overwhelmingly thermal. Coal-based capacity has risen from 7,466 MW in 2014 to nearly 8,700 MW in 2024, while renewable energy capacity has grown only marginally — from 397 MW to around 640 MW over the same period. Thermal sources still account for over 80% of the state’s generation capacity.