Key Details

The government’s overview, Geothermal Energy: A New Chapter in India’s Clean Energy Journey, brings together India’s resource estimates, policy framework and initial demonstration activity.

Area	Current position
National framework	The National Policy on Geothermal Energy, notified in September 2025, is implemented by the Ministry of New and Renewable Energy
Estimated potential	Approximately 10.6 GW, based on theoretical geothermal prospects
Mapped resources	381 hot springs, ten geothermal provinces and 42 promising sites identified by the Geological Survey of India
Puga Valley	Two 1,000-metre wells commissioned by the ONGC Energy Centre in July 2026 for reservoir evaluation
Proposed power project	The Puga wells are expected to support a 1 MW demonstration geothermal plant
Research programme	MNRE sanctioned five R&D projects in July–August 2025 covering power generation, heating, cooling, resource assessment and indigenous technology
Wider applications	Direct heating and cooling, agriculture, aquaculture, ground-source heat pumps and possible reuse of abandoned oil and gas wells

Government Overview Connects Policy with Early Field Activity

The National Policy on Geothermal Energy, 2025 seeks to move India from mapping underground heat resources towards testing practical applications. It covers exploration, drilling, reservoir management, power generation and the direct use of geothermal heat.

The policy also supports a national geothermal data repository, pilot projects and Centres of Excellence, alongside participation by government institutions, research organisations and private firms. Cooperation with Australia, Iceland and Saudi Arabia has identified geothermal energy as an area for research and knowledge exchange.

Puga Is an Early Test of the National Strategy

The ONGC Energy Centre commissioned two geothermal wells in Puga Valley, Ladakh, in July 2026. Each well extends approximately 1,000 metres underground and will support an assessment of the geothermal reservoir.

The wells are not a functioning power plant. They are intended to establish whether underground temperature, fluid availability and reservoir conditions can support India’s proposed 1 MW demonstration project.

Puga is among the country’s most promising geothermal locations, but the demonstration remains an evaluation of technical performance rather than evidence that large-scale geothermal electricity is already commercially viable.

Geothermal Could Supply Power When Solar and Wind Cannot

Geothermal energy uses heat stored beneath the Earth’s surface. At suitable sites, underground hot water or steam can be brought to the surface to generate electricity.

Its principal advantage is availability: unlike solar and wind, geothermal energy can potentially provide continuous, weather-independent output. This could make it a useful complement to variable renewable generation.

Geothermal resources do not need to be hot enough to produce electricity to have economic value. Lower-temperature resources can potentially support:

• heating and cooling;

• agricultural and greenhouse applications;

• aquaculture;

• district or space heating; and

• ground-source heat-pump systems.

Policy Extends Beyond New Geothermal Fields

One strand of the national policy concerns abandoned or unproductive oil and gas wells. Subject to technical feasibility, such wells could be examined for geothermal applications using existing geological information, drilling expertise and infrastructure.

The policy also recognises Enhanced Geothermal Systems and Advanced Geothermal Systems, which may expand development beyond locations containing readily accessible natural reservoirs. These technologies would still require site investigation and demonstration before their applicability in India is established.

MNRE’s five supported research projects reflect this wider approach. They cover conventional resource assessment as well as power production from unproductive oil and gas wells, combined solar-geothermal generation, air-conditioning applications and shallow geothermal systems.

Resource Potential Is Not the Same as Generating Capacity

The estimated 10.6 GW geothermal prospect describes India’s theoretical resource base. It is not equivalent to installed capacity or to projects already proven technically and financially viable.

India must first determine which sites have suitable temperature, reservoir productivity and sustainable fluid flow. Drilling costs, distance from users or electricity networks, and long-term reservoir behaviour will influence whether a project can compete with other energy options.

The initial demonstrations are therefore intended to convert broad geological estimates into site-specific technical and cost evidence.

Policy Relevance

India’s geothermal programme could add a continuous domestic energy source to a renewable system led by solar and wind. Its eventual role will depend on what the early projects establish.

• Build an evidence base: Reservoir performance, drilling costs and sustained output from Puga and other projects will determine which of the 42 promising sites merit further investment.

• Match each resource with the right use: Some sites may support electricity generation, while others may be better suited to heating, cooling, agriculture or aquaculture.

• Test reuse before new drilling: Suitable abandoned oil and gas wells could reduce the need for entirely new infrastructure, but their technical and economic feasibility must be demonstrated.

• Define the route to private investment: Commercial participation will depend on how exploration risk, resource data and early-stage development costs are shared among MNRE, public-sector energy companies, researchers and developers.

For now, geothermal energy is a research and demonstration segment within India’s clean-energy portfolio. The policy opportunity is to use the initial projects to determine where it can deliver value before committing to wider deployment.

Relevant Question for Policy Stakeholders: Which technical, cost and reservoir-performance benchmarks will determine whether India advances from geothermal demonstrations to commercial projects?

Follow the Full Update Here: Geothermal Energy: A New Chapter in India’s Clean Energy Journey