Syllabus: 

GS-3: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.  

Context: 

The Government of India has officially notified the National Policy on Geothermal Energy (2025) marking a significant step in diversifying the country’s renewable energy portfolio and reinforcing its commitment to achieve the 2070 Net Zero target.

About the Policy 

Vision and Goals: 

• To make geothermal energy a major pillar in India’s renewable energy mix, contributing to climate commitments and energy security. 
• To enhance research, exploration, and drilling technologies; promote direct applications such as heating, cooling, and greenhouse use; and encourage adoption of ground source heat pumps (GSHPs) and advanced geothermal systems.
• It calls for strong collaboration with state governments, oil and gas companies, international geothermal bodies, and research institutions to build a robust ecosystem for the sector’s growth.

Potential and Site Mapping: 

• Geological Survey of India (GSI) has identified 381 hot springs with surface temperatures between 35-89°C. In the Himalayan region, temperatures up to 200°C. 

There are 10 geothermal provinces in India e.g. 

(i) Himalayan Geothermal Province; (ii) Naga-Lusai; (iii) Andaman Nicobar Islands; (iv) Son-Narmada Tapi (SONATA); (v) West Coast; (vi) Cambay Graben; (vii) Aravalli; (viii) Mahanadi; (ix) Godavari; (x) South Indian Cratonic.

Scope of Applications: 

• The primary applications for geothermal energy include electricity generation, a wide range of direct use as well as space heating/cooling through ground source heat pumps (GSHPs). 

Development and Financing Models: 

• Sequential approach covering resource assessment, exploratory drilling, detailed feasibility, construction, commissioning, and operation.
• Promotion of public–private partnerships and joint ventures, particularly with the oil and gas sector to utilize expertise and existing infrastructure.
• Fiscal support through import duty and GST exemptions, tax holidays, concessional loans, and viability gap funding.
• According to the policy document, the preference shall be given to indigenous geothermal technologies for the reduction of dependency on imported equipment by encouraging local innovation in drilling and downhole measurement/monitoring technologies and reservoir management.” (100 per cent Foreign Direct Investment is allowed in the renewable energy sector.)
• To spur innovation, the policy encourages research and development of hybrid geothermal-solar plants, retrofitting of abandoned oil wells, and deployment of Enhanced and Advanced Geothermal Systems (EGS/AGS). 

Regulation and Implementation: 

• Single-window clearances at the state level, with designated nodal agencies for geothermal energy in states/UTs.
• Compliance with environmental, forest, water, and land regulations, along with stakeholder consultations in tribal and remote areas.
• MNRE to serve as the nodal ministry, establish Centres of Excellence, maintain data repositories, and ensure periodic reporting.

India’s Geothermal Potential

India has an estimated 10.6 gigawatts (GW) of geothermal potential, which could rise with further exploration.

According to the International Energy Agency (IEA), “China, the US and India have the largest market potential for next-generation geothermal electricity, together accounting for three-quarters of the global total.” 

• The IEA estimates India’s geothermal market potential to grow to 4.2 GW by 2035 and nearly 100 GW by 2045. 

Challenge in utilising it: 

• Geothermal energy faces high upfront costs and exploration risks — it takes about Rs 36 crore to develop one megawatt (MW) of capacity. 

Sources:

https://indianexpress.com/article/business/govt-geothermal-pilots-iceland-norway-firms-eye-sites-uttarakhand-arunachal-10256080/ https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2025/09/202509152136711668.pdf