Context:

• The Ministry of New and Renewable Energy (MNRE) notified the first-ever National Policy on Geothermal Energy (2025).

Background:

• Geothermal energy development in India has been relatively limited, but it holds immense potential.
• The Geological Survey of India (GSI) has identified 381 hot springs and around 10 potential geothermal provinces.
• These provinces are spread across 16 states and UTs including Ladakh, Himachal Pradesh, Gujarat, Uttarakhand, Jharkhand, Chhattisgarh, Odisha, Bihar, Haryana, and Jammu & Kashmir.
• India’s estimated geothermal energy potential is 10,000 MW (10 GW), while the present installed capacity is negligible.
• Globally, geothermal installed capacity was 15.4 GW (2024), with the USA, Indonesia, and the Philippines leading.
• MNRE constituted a Task Force in 2024, comprising research institutes and industry representatives, whose recommendations formed the basis of this policy.

Objectives:

• Exploration and commercialization of high-quality and sustainable geothermal resources.
• Promote both electricity generation and direct uses (district heating, agriculture, aquaculture, building heating/cooling).
• Integrate geothermal energy into the renewable energy mix for India’s Net-Zero 2070 goal.
• Encourage indigenous technology development, innovation, and adoption of global best practices.
• Facilitate collaboration with public, private, and international institutions.
• Promote mineral extraction opportunities (e.g., silica, lithium) for economic growth.

Key Provisions:

• Nodal Agency: MNRE designated as the nodal body for regulation and coordination.
• Exploration & Permits: Single-window clearance, state-level guidelines, community consultations (esp. tribal areas).
• Technology & Innovation: Focus on high & medium enthalpy resources; promotion of Enhanced Geothermal Systems (EGS) and Ground Source Heat Pumps (GSHPs).
• Financial Incentives: Viability gap funding, tax exemptions, customs duty relief, land allocation, 100% FDI allowed.
• Capacity Building: Establishment of Centres of Excellence (CoEs), training, R&D; approval of 5 pilot projects.
• Monitoring: Regular reporting and impact assessments.

Benefits and Potential Impacts:

• Environmental: Reduction in GHG emissions, decreased dependence on fossil fuels, 24×7 power availability.
• Economic: Job creation (exploration, drilling, technology), revenue from mineral extraction.
• Energy Security: Stable and reliable renewable source.
• Social: Rural and remote area development; over 50% efficiency in HVAC systems.

Challenges & Suggested Solutions :

• Technical: High upfront investment, risky exploration → Technology transfer through international collaborations.
• Regulatory: Approval delays → Fast-tracking via digital single-window platforms.
• Financial: Low private investment → Risk-sharing via insurance & green funds.
• Social Resistance: Protests by tribal/local communities → Benefit-sharing models for balance.

Geothermal Energy

Definition:

• Geothermal energy is the energy derived from heat stored beneath the Earth’s surface. It naturally emerges through hot springs, geysers, volcanic regions, and subsurface rocks.

Key Features:

• Clean energy – very low carbon emissions.
• Renewable – Earth’s heat is continuously replenished.
• 24×7 Availability – not weather-dependent like solar/wind.
• Multi-purpose Use – power generation, district heating, agriculture (greenhouses), aquaculture, industry, desalination, and tourism.

Global Scenario:

• Leading Producers – USA, Indonesia, Philippines, Turkey, New Zealand, Iceland, Mexico, Kenya.
• Iceland – meets ~90% of its energy needs from geothermal + hydropower.
• USA – world leader in geothermal electricity production.

Geothermal Energy in India

Potential Capacity: ~10,000 MW

Major Regions:

• J&K & Ladakh (Puga, Chumathang)
• Himachal Pradesh (Manikaran, Tapovan)
• Uttarakhand
• Chhattisgarh (Tattapani)
• Maharashtra & Gujarat (Kutch region)
• Andaman & Nicobar Islands

Benefits:

• Reduces GHG emissions.
• Ensures energy security in rural/hilly areas.
• Cuts dependence on imported fuels.
• Promotes employment and tourism.

India’s Geothermal Energy Landscape

Geothermal Atlas (2022):

• Geological Survey of India (GSI) published a geothermal atlas.
• Identified 381 thermally anomalous areas across the country.

Estimated Potential: ~10,600 MW across diverse geological regions such as:

• Himalayas
• Gujarat
• Maharashtra
• Son-Narmada-Tapti (SONATA) Basin
• Godavari Basin
• Northeastern states

Major Geothermal Reservoirs

Puga–Chumathang (Ladakh):

• Temperature up to 240°C.
• Suitable for flash/binary power plants.
• India’s first and world’s highest geothermal power project being developed here by ONGC at >14,000 feet altitude.

Tattapani–Surajkund Belt (Chhattisgarh/Jharkhand):

• Medium enthalpy resources with 110–150°C temperature.

Cambay Basin (Gujarat):

• Medium to high enthalpy capacity.
• Suitable for both electricity and direct-use applications.