The Government of India has notified the National Policy on Geothermal Energy (2025), opening a new chapter in the country’s clean energy journey. The policy aims to unlock India’s untapped geothermal potential through research, innovation, ecosystem development, and public-private partnerships, while directly contributing to the Net Zero 2070 commitment, according to the press statement by the Ministry of New and Renewable Energy on September 17.
Why geothermal matters for India’s energy transition
Unlike solar and wind, geothermal offers round-the-clock, base-load renewable power. India’s geothermal reserves, largely unexploited so far, can support not just electricity generation but also district heating, agriculture, aquaculture, and space cooling through Ground Source Heat Pumps (GSHPs).
The new policy provides a comprehensive regulatory framework, placing stewardship responsibilities with the Ministry of New and Renewable Energy (MNRE), which will oversee exploration and development.
Moneycontrol was the first to report in June 2023 that the government was exploring the repurposing of abandoned oil wells for geothermal energy. That idea has now taken shape in policy, with the Ministry of New and Renewable Energy (MNRE) unveiling a framework to tap the hidden heat beneath India’s soil for power and direct-use applications.
Key pillars of the policy
- Research and global best practices: Push for inter-ministerial collaboration, R&D, and adoption of global geothermal benchmarks.
- Integration with national goals: Aligns geothermal energy deployment with India’s Net Zero 2070 target and renewable energy commitments.
- Diverse applications: Extends beyond power generation to greenhouses, cold storage, desalination, and tourism.
- Technological innovation: Focus on hybrid geothermal-solar plants, retrofitting abandoned oil wells, and developing Enhanced/Advanced Geothermal Systems (EGS/AGS).
- Local innovation and partnerships: Incentivises joint ventures, repurposing oil and gas infrastructure, and state-level tie-ups.
- International collaboration: Encourages partnerships with leading geothermal nations and global research bodies.
- Ecosystem building: Seeks to create a robust public-private framework with clear pathways for private investment.
- Capacity building: Emphasis on training, skill development, and knowledge sharing to prepare a domestic talent base.First step: Five pilot projects sanctioned
As part of the rollout, MNRE has sanctioned five pilot projects and resource-assessment initiatives across different regions. These projects will evaluate the viability and potential of geothermal sources in India before scaling up commercially.
The ministry will monitor progress closely while ensuring a conducive environment for developers, industry players, and research institutions.
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