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Blog / 19 Sep 2025

National Policy on Geothermal Energy (2025)

Context:

The Government of India recently notified the National Policy on Geothermal Energy. It provides a framework to promote geothermal exploration and utilization for both electricity generation and direct-use applications. The policy focuses on research, technology, collaboration, and building a public-private ecosystem for the sector's long-term development.

About Geothermal Energy:

Geothermal energy is a clean and renewable source of energy that harnesses the thermal energy stored within the Earth's crust.

·        It can be harnessed for electricity generation, district heating, greenhouse farming, aquaculture, and cooling/heating applications using Ground Source Heat Pumps (GSHPs).

·        Unlike solar and wind, geothermal provides base load energy (available 24/7), making it a strategic addition to India’s renewable energy mix.

Geothermal energy animation Images - Free Download on Freepik

Objectives of the Policy:

    • It facilitates systematic exploration and utilization of geothermal resources.
    • It promotes research and innovation to develop advanced geothermal technologies.
    • It integrates geothermal into India’s clean energy roadmap, supporting energy security and emission reductions.
    • It develops a supportive ecosystem for investment, partnerships, and skill-building.

Key Highlights of the Policy:

Research, Regulation, and Best Practices

      • Encourages inter-ministerial coordination, global knowledge exchange, and the development of regulatory frameworks.
      • The Ministry of New and Renewable Energy (MNRE) will be the nodal authority.

Integration with Net Zero and Renewable Targets

      • Supports India’s Net Zero by 2070 goal and enhances energy resilience through diversification of renewable sources.

Multiple Real-World Applications

    • Focus on:
      • Electricity generation
      • District heating & cooling
      • Agriculture and greenhouses
      • Cold storage and aquaculture
      • Tourism and spa development
      • Desalination projects

Technological Innovation:

    • Promotes:
      • Hybrid geothermal-solar systems
      • Retrofitting abandoned oil and gas wells
      • Enhanced/Advanced Geothermal Systems (EGS/AGS)

 Ecosystem and Infrastructure Development:

    • Incentivizes public-private partnerships (PPPs), reuse of oil & gas infrastructure, and localized innovation.
    • Builds human capital through training, awareness, and capacity development.

Pilot Projects:

The MNRE has sanctioned five pilot projects to test geothermal viability in India. These include:

    • Resource assessment studies
    • Demonstration plants for electricity and heating
    • Exploration in hot spring zones like:
      • Ladakh
      • Himachal Pradesh
      • Jharkhand
      • Gujarat
      • Andaman & Nicobar Islands

These projects will help develop data, standards, and best practices for broader adoption.

Implications:

·        Geothermal reduces dependence on fossil fuels and complements solar and wind by offering constant power supply.

·        It is a low-carbon, low-emission, and land-efficient renewable source.

·        Geothermal-based cold storage, greenhouse farming, and aquaculture can improve rural livelihoods and agricultural sustainability.

Challenges Ahead:

While promising, geothermal development faces challenges such as:

    • High upfront exploration costs
    • Limited domestic expertise
    • Lack of detailed resource mapping
    • Policy-level integration with state governments

The 2025 policy addresses these through R&D incentives, capacity building, and international partnerships.

Conclusion:

The National Policy on Geothermal Energy (2025) represents a visionary move to diversify India’s energy portfolio while advancing its Net Zero 2070 goal. By tapping into the Earth’s own heat, India is not only embracing clean energy but also reinforcing its role as a global leader in climate action and innovation.