National Policy on Geothermal Energy 2025

Source:  News on Air

Context: MNRE launched the National Policy on Geothermal Energy (2025) to accelerate exploration and deployment of geothermal energy resources.

About National Policy on Geothermal Energy 2025:

What It Is?

  • A comprehensive framework issued by the Ministry of New & Renewable Energy (MNRE) to harness India’s 10 GW geothermal potential, integrate it with renewable energy goals, and build a public-private ecosystem for sustainable development.

Launched By: Ministry of New and Renewable Energy (MNRE)

Objectives:

  • Research & Innovation: Improve geothermal exploration, drilling, reservoir management, cost-effective power generation, and direct-use tech.
  • Collaboration: Work with ministries, research institutes, global geothermal agencies, and oil/gas sector.
  • Decarbonization: Promote geothermal for space heating/cooling, industry, agriculture, and tourism.
  • Infrastructure Utilization: Repurpose abandoned oil & gas wells for geothermal production.

Key Features:

  • Vision & Goals:
    • Make geothermal a major pillar of India’s renewable energy mix.
    • Enhance energy security and support Net Zero by 2070.
  • Geothermal Potential:
    • 381 hot springs identified by GSI; 10 geothermal provinces including Himalayas, Cambay Graben, Godavari Basin, Aravalli.
    • Puga (Ladakh), Manikaran (HP), Tattapani (Chhattisgarh) highlighted as high-potential zones.
  • Scope of the Policy:
    • Covers electricity generation, district heating/cooling, cold storage, greenhouse heating, aquaculture, tourism, desalination.
    • Encourages hybrid systems (geothermal + solar) and mineral extraction (lithium, boron) for economic viability.
  • Development Model:
    • 100% FDI permitted in geothermal sector.
    • Promotes risk-sharing mechanisms, joint ventures with oil & gas companies, and single-window clearance by states.
    • Fiscal incentives: GST & import duty exemptions, tax holidays, accelerated depreciation, viability gap funding.

Implementation:

  • MNRE as nodal agency with inter-ministerial coordination.
  • Establishment of Geothermal Centres of Excellence for R&D and pilot projects.
  • Periodic progress reports and SOP-based execution for faster rollout.