National Policy on Geothermal Energy, 2025

Why in News?

The Ministry of New & Renewable Energy released India’s first National Policy on Geothermal Energy (Sept 17), aiming to develop 10.6 GW potential through pilots in Gulf of Cambay, Arunachal Pradesh and Uttarakhand, with R&D support from US, Iceland, Norway and Indonesia.

Description:

  • The Ministry of New & Renewable Energy (MNRE) launched India’s first-ever National Policy on Geothermal Energy (Sept 2025).
  • Aim: diversify India’s clean energy mix & promote untapped geothermal resources.

Key Features:

  • Coverage:
    • High-enthalpy resources → power generation.
    • Low/medium enthalpy → direct use (heating, cooling, industrial).
  • FDI: 100% FDI allowed; focus on indigenous technology to cut imports.
  • Fiscal support: tax holidays, import-duty exemption, concessional loans, Viability Gap Funding.
  • Project tenure: support for 30 yrs (extendable if resource sustains).
  • Collaboration: JVs with oil, gas & mineral firms for exploration/utilisation.
  • R&D & pilots: Centres of Excellence, pilot plants, int’l tie-ups.
  • Repurposing: abandoned oil/gas wells for geothermal; promotion of ground-source heat pumps.

India’s Geothermal Potential:

  • 381 thermally anomalous sites (Geological Survey of India).
  • Spread over 10 geothermal provinces – Ladakh, Himachal, Gujarat, Andaman & Nicobar etc.
  • Estimated potential: 10,600 MW (enough for ~1 crore homes).
  • Puga Valley (Ladakh) → India’s 1st geothermal pilot; world’s highest (~14,000 ft).

Significance:

  • Low-carbon: ~99% less CO₂ than fossil fuels.
  • Cost-effective: up to 80% cheaper over lifetime vs fossil plants.
  • Weather-independent: unlike solar/wind, provides 24×7 base-load.
  • Fuel-free operation: once commissioned, no continuous fuel input.
  • Supports Net Zero by 2070 & reduces overdependence on solar/wind.
  • Links with Paris goals, Net Zero 2070, National Energy Policy, LiFE.

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