India Releases National Policy on Geothermal Energy to Tap Renewable Baseload Potential
SDG 7: Affordable & Clean Energy | SDG 13: Climate Action | SDG 9: Industry, Innovation & Infrastructure
Institutions: Ministry of Earth Sciences | Ministry of Petroleum & Natural Gas
On 15 September 2025, Ministry of New and Renewable Energy (MNRE) officially released the National Policy on Geothermal Energy to promote exploration, development, and utilisation of geothermal resources across India. The policy aims to make geothermal a key contributor to India’s renewable energy mix and its net-zero by 2070 target. It covers both high-enthalpy sites for electricity generation and low- to medium-enthalpy direct‐use applications (heating, cooling, agriculture, aquaculture, horticulture, cold storage, etc.). Key highlights:
Identification of over 381 hot springs and 10 geothermal provinces, including Himalayan, SONATA, Aravalli, and others across states & UTs like Ladakh, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, West Bengal, Odisha, Gujarat, Maharashtra, Telangana etc.
Support for converting abandoned oil & gas wells into geothermal projects, collaborating with oil & gas sector agencies.
Financing & fiscal incentives including concessional loans, potential duty/GST exemptions on geothermal equipment, preferential central funding for special category states, import duty/GST exemptions, and technology localisation.
Institutional support via State nodal agencies, single-window clearances, inter-agency coordination (MNRE, MoPNG, DGCH, GSI, etc.), and pilot projects under MNRE’s R&D scheme.
This policy fills a major gap in India’s renewable strategy by formally bringing geothermal into the energy planning framework. Geothermal offers reliable baseload power and continuous renewable supply, helping address intermittency of solar & wind and energy reliability in remote/hilly regions. Also, direct‐use geothermal applications can reduce fossil fuel dependence in heating/agriculture, improving local livelihoods, reducing emissions, and boosting rural development.
Relevant Question for Policy Stakeholders:
How quickly can India scale pilot geothermal projects and invest in capacity (exploration, drilling, resource assessment) so that geothermal becomes a meaningful contributor to both power generation and direct-use clean energy applications by 2030?
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https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2025/09/202509152136711668.pdf