Context: Analysis highlighted India’s progress in geothermal energy following the commissioning of the country’s first two 1,000-metre-deep geothermal wells in Puga Valley, Ladakh, under the National Policy on Geothermal Energy (2025).
About Geothermal Energy & Its Geological Genesis:
What it is?
- Geothermal energy is low-carbon, renewable thermal energy generated deep within the Earth’s interior through the radioactive decay of naturally occurring isotopes (uranium, thorium, potassium) and primordial heat left over from planetary formation.
- In geologically active zones (tectonic plate boundaries, rift basins, and deep crustal faults), mantle convection drives hydrothermal fluids toward the surface, trapping steam and superheated water in permeable reservoir rocks.
- When drilled, the fluid ascends to spin steam turbines connected to electric generators, after which condensed fluids are reinjected into the reservoir to maintain hydrostatic pressure and avoid depletion.
Key Data & Geothermal Resource Profile:
- Theoretical Capacity: The Geological Survey of India (GSI) estimates India’s theoretical geothermal power potential at approximately 10.6 GW (10,600 MW).
- Geographical Mapping: GSI has mapped 381 natural hot springs across 10 distinct geothermal provinces:
- Himalayan Geothermal Province (Ladakh, Himachal Pradesh, Uttarakhand)
- Naga-Lusai Belt (Northeastern fold mountains)
- Andaman & Nicobar Islands (Volcanic arc)
- Son-Narmada-Tapi (SONATA) Lineament (Central India)
- West Coast Province (Konkan geothermal belt)
- Cambay Graben (Gujarat rift basin)
- Aravalli Province (Rajasthan/Haryana)
- Mahanadi Basin (Odisha)
- Godavari Basin (Telangana/Andhra Pradesh)
- South Indian Cratonic Region
- High-Altitude Puga Milestone: The Puga Valley project sits at an altitude exceeding 14,000 feet in Ladakh’s Changthang region. Two 1,000-metre wells will support India’s maiden 1 MW demonstration-scale geothermal power plant, advancing the Carbon-Neutral Ladakh vision.
Status of Key Government-Supported Projects:
| Project Location | Implementing / Research Focus | Current Operational Status |
| Puga Valley, Ladakh | ONGC Energy Centre, Ladakh Administration, LAHDC Leh | Two 1,000 m deep production wells commissioned; reservoir evaluation underway for a 1 MW pilot plant. |
| Ankleshwar, Gujarat | MNRE Pilot Project with Oil & Gas PSUs | Retrofitting abandoned/depleted oil and gas wells for geothermal power; baseline geological studies complete. |
| Gandhinagar, Gujarat | Integrated Solar-Geothermal Demonstration | Three wells drilled producing fluids at 70°C–80°C; demonstrated 50–90 kW hybrid electricity generation. |
| Tawang, Arunachal Pradesh | High-altitude Geothermal Resource Assessment | Geochemical analysis and geophysical studies active across 5 localized thermal spring sites. |
| Hyderabad, Telangana | Shallow Geothermal Air-Conditioning | Developing closed-loop geothermal cooling systems for space cooling to replace conventional energy-intensive HVACs. |
| National Shallow Geothermal Study | Research Institutions under RE-RTD Scheme | Formulating analytical modeling for Borehole Heat Exchangers (BHE) to drive Ground Source Heat Pumps (GSHPs). |
National Policy on Geothermal Energy (2025): Key Pillars
- Lease Tenures & Single-Window Clearance: Empowers State and UT governments to award exploration permits (3–5 years) and long-term development leases (up to 30 years) through designated State Nodal Agencies.
- Repurposing Inactive Oil and Gas Wells: Establishes guidelines to convert abandoned, depleted, or sub-commercial hydrocarbon wells into geothermal heat and electricity producers, leveraging ONGC/OIL subsurface datasets.
- Fiscal Subsidies & Market Enablers: Provides up to 100% financial assistance for government R&D and up to 70% for private start-ups under the Renewable Energy Research and Technology Development Programme (RE-RTD); incorporates geothermal under Renewable Purchase Obligations (RPO) and the Indian Carbon Credit Trading Scheme.
- Promotion of Next-Gen Technologies: Promotes investments in Enhanced Geothermal Systems (EGS)—which hydraulically fracture hot dry rocks to create artificial permeability—and closed-loop Advanced Geothermal Systems (AGS).
- National Geothermal Data Repository (NGDR): Integrates subsurface exploration logs, gravity surveys, and thermal gradient maps across GSI, the Ministry of Mines, and the Directorate General of Hydrocarbons (DGH).
Strategic Advantages & Applications:
- Round-the-Clock (RTC) Clean Baseload: Unlike weather-dependent solar and wind, geothermal operates at very high Capacity Utilization Factors (CUF > 85%–90%), providing constant baseload without expensive battery storage.
- Decarbonizing Fragile Border Regions: Displaces costly, polluting diesel generators in off-grid Himalayan zones (Ladakh, Lahaul-Spiti, Tawang), ensuring winter energy security for civilian settlements and military defense outposts.
- Direct-Use Multi-Sector Applications: Beyond power generation, medium-to-low temperature geothermal water (30°C–90°C) is utilized for:
- District space heating and passive building architecture.
- Year-round greenhouse farming and aquaculture in sub-zero terrains.
- Agro-processing, fruit dehydration, and temperature-controlled cold chains.
- Eco-friendly balneotherapy and geo-tourism.
- Critical Mineral Extraction: Geothermal brines often contain dissolved high-value critical minerals—such as lithium, cesium, rubidium, and boron—which can be extracted as valuable by-products under the Mines and Minerals (Development and Regulation) Act, 1957.
Challenges in Developing Geothermal Energy:
- High Upfront Exploration Risk: Deep exploratory drilling carries high capital expenditure with no guarantee of locating commercially viable permeability or flow rates (resource discovery risk).
- High-Altitude Logistical Friction: Prime prospects like Puga Valley sit above 14,000 feet, where sub-zero temperatures, thin atmospheres, short working seasons, and narrow mountain passes restrict heavy drilling operations.
- Corrosion & Mineral Scaling: Geothermal fluids are laden with dissolved silica, hydrogen sulfide, and salts, causing rapid corrosion, pipe scaling, and mechanical degradation of turbine blades.
- Environmental & Induced Seismicity Concerns: Hydraulic stimulation in Enhanced Geothermal Systems (EGS) carries the risk of triggering micro-earthquakes, while improper fluid disposal can contaminate freshwater aquifers with toxic heavy metals.
- Absence of Mature Indigenous Supply Chains: India remains reliant on imported deep-well logging tools, downhole pumps, and binary organic Rankine cycle (ORC) turbomachinery adapted to low-to-medium enthalpy reservoirs.
Way Ahead:
- Derisking Private Capital via Viability Gap Funding (VGF): Offer sovereign-backed early-stage exploratory risk insurance and VGF grants to absorb preliminary drilling losses, following the Icelandic and US models.
- Fast-Tracking Multilateral Knowledge Partnerships: Deepen bilateral agreements with global geothermal leaders—specifically Iceland, Australia, and Saudi Arabia—for directional deep-drilling and EGS reservoir stimulation expertise.
- Synergizing Hydrocarbon Data with Geothermal Mapping: Mandate public sharing of legacy seismic, core-sample, and temperature data from ONGC and OIL to identify low-enthalpy aquifers without repeating costly surveys.
- Standardizing District Direct-Use Infrastructure: Formulate municipal building bye-laws encouraging Ground Source Heat Pumps (GSHP) for centralized heating and cooling across urban residential and commercial hubs.
- Enforcing Closed-Loop Reinjection Standards: Require strict environmental oversight ensuring 100% reinjection of extracted geothermal brine to prevent groundwater contamination, prevent surface subsidence, and preserve long-term reservoir pressure.
Conclusion:
As India works toward its Net Zero 2070 goal and targets 500 GW of non-fossil energy capacity, geothermal power provides the critical missing link: dependable, round-the-clock renewable baseload power. Integrating targeted fiscal support, advanced EGS drilling, and oil-well repurposing will ensure geothermal energy becomes a permanent, resilient pillar of India’s clean energy landscape.
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