The Solar Energy Corporation of India Limited (SECI) has invited Expressions of Interest (EOI) from domestic and international organizations to assess the feasibility of developing geothermal energy projects in the Andaman & Nicobar Islands. The initiative aims to identify agencies with the technical and commercial expertise required for geothermal resource assessment, exploration, development, and utilization in the Union Territory.
SECI, a Government of India enterprise under the Ministry of New and Renewable Energy (MNRE), is seeking participation from technology providers, drilling contractors, integrated energy developers, research institutions, and consortiums. The EOI is intended to evaluate available technologies, industry capabilities, and potential project implementation models before launching a competitive bidding process.
The move supports India’s efforts to diversify its renewable energy portfolio and reduce dependence on imported diesel for electricity generation in remote island regions. Geothermal energy offers a reliable source of round-the-clock electricity that is not affected by changing weather conditions, making it particularly suitable for isolated locations such as the Andaman & Nicobar Islands. The initiative also aligns with India’s long-term target of achieving Net Zero carbon emissions by 2070.
The proposed projects are based on the National Policy on Geothermal Energy, issued by MNRE on September 15, 2025, which identifies the Andaman & Nicobar geothermal province as one of the country’s most promising geothermal regions. Depending on the availability of underground geothermal resources, the planned power plants are expected to have capacities ranging from 5 MW to 20 MW.
According to SECI, the projects may adopt globally established geothermal technologies such as Dry Steam, Flash Steam, or Binary Cycle systems. The projects are expected to be developed under either the Build-Own-Operate (BOO) or Build-Own-Operate-Transfer (BOOT) model. Power generated from the plants will be supplied to the Electricity Department of the Andaman & Nicobar Administration through long-term Power Purchase Agreements (PPAs) with a tenure of 20 to 25 years. The tariff ceiling has been fixed at ₹15 per kWh.
Project implementation has been planned in two phases to reduce technical and geological risks. The first phase, expected to take around 18 months, will include geological, geochemical, and geophysical investigations, magneto-telluric surveys, and preparation of bankable feasibility studies. The second phase, which is estimated to take approximately 24 months, will involve exploratory drilling, production well testing, reservoir validation, construction of the power plant, installation of equipment, and commissioning.
SECI has clarified that there is no application fee for participating in the EOI. Since the exercise is intended only for market assessment and capability mapping, applicants are not required to submit an Earnest Money Deposit (EMD) or Performance Bank Guarantee (PBG). These financial requirements, along with eligibility criteria such as minimum net worth and annual turnover, will be announced during future tendering stages.
The EOI, numbered SECI/C&P/EOI/17/0003/26-27, was issued on August 4, 2026. A virtual pre-submission meeting will be held on August 17, 2026, at 2:30 PM IST through Microsoft Teams. Interested organizations must submit their responses electronically in PDF or PowerPoint format by September 18, 2026, at 6:00 PM IST. The exercise is expected to help establish the foundation for geothermal energy development and strengthen reliable clean power supply across the Andaman & Nicobar Islands.
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