MNRE Unveils First National Policy On Geothermal Energy To Boost Clean Power Mix

India has taken another step in its clean energy journey with the release of its first National Policy on Geothermal Energy. The Ministry of New and Renewable Energy (MNRE) announced the policy, which is designed to make geothermal energy a key part of the country’s renewable energy mix. This move is in line with India’s ambitious target of achieving net-zero emissions by 2070. Geothermal energy, which taps into the natural heat stored within the Earth, is being recognized for its potential to provide 24/7 electricity, ensure grid stability, and supply energy to regions that are remote or difficult to access.

The policy places strong emphasis on research and development, focusing on improving geothermal exploration and drilling techniques. It also highlights the importance of developing heating and cooling applications through solutions like ground source heat pumps, which can be used in both buildings and agriculture. By collaborating with international organizations, ministries, and research institutions, the government aims to bring global best practices to India’s geothermal development. A major focus of the policy is to create a supportive ecosystem that involves both public and private stakeholders, ensuring long-term growth of the sector.

India’s renewable energy capacity is currently dominated by solar, wind, and hydropower, but geothermal energy has its own distinct advantages. The country’s unique geological features make it a promising resource. The Geological Survey of India (GSI) has identified 381 hot springs across the country with temperatures ranging from 35°C to 89°C. Most of these areas are suitable for direct applications like heating, cooling, aquaculture, and food drying. High-enthalpy resources, which are more suitable for electricity generation, have been found in specific regions such as the Himalayas. GSI has outlined 10 geothermal provinces and important sites, including Puga in Ladakh, Manikaran in Himachal Pradesh, and Tattapani in Chhattisgarh.

Despite its potential, geothermal energy faces major challenges, particularly high upfront costs and risks involved in exploration. The new policy addresses these by offering financial support mechanisms, including concessional long-term loans, Viability Gap Funding, and grants aimed at reducing risk. Fiscal incentives such as exemptions on import duty and GST for geothermal equipment, as well as tax holidays, have also been proposed to encourage investments. To make development smoother for project developers, MNRE will provide a single-window system for permissions and approvals, while states will be encouraged to appoint nodal agencies to help with clearances for land, water, and environmental needs.

The policy also suggests repurposing abandoned oil and gas wells for geothermal production, which could reduce costs by taking advantage of existing drilling infrastructure and expertise. In addition, it allows for the extraction of valuable minerals such as silica and lithium from geothermal resources, providing an additional economic benefit. MNRE will serve as the nodal agency for implementing the policy, with plans to set up Centres of Excellence to provide technical guidance, training, and capacity building. Progress will be tracked through regular reports to ensure timely updates and accountability.

With this policy, India is looking to open new frontiers in its renewable energy development, complementing its achievements in solar and wind while adding a reliable, clean, and constant energy source to its portfolio.