Indian Economy News

Geothermal Energy: A New Chapter in India's Clean Energy Journey

  • IBEF
  • September 8, 2026

India is looking to tap its vast geothermal energy potential as part of its transition towards a cleaner, more diversified energy mix, with the government notifying the National Policy on Geothermal Energy in September 2025 to establish a framework for systematic exploration and development, under the nodal Ministry of New and Renewable Energy (MNRE). India reached a milestone in July 2026 when the ONGC Energy Centre commissioned the country's first two geothermal wells in Puga Valley, Ladakh, each about 1,000 metres deep, supporting the development of India's first 1-MW demonstration geothermal power project. The Geological Survey of India has mapped 381 hot springs and identified 10 geothermal provinces, with India's theoretical geothermal potential estimated at nearly 10.6 GW across 42 promising sites.

Between July and August 2025, MNRE sanctioned five research and development projects covering resource assessment, indigenous technology development and field demonstrations, including a pilot at Ankleshwar, Gujarat, assessing electricity generation from retrofitted oil and gas wells, and a Gandhinagar demonstration project combining solar and geothermal energy that has shown electricity generation of 50-90 kilowatts. The government is also exploring repurposing abandoned oil and gas wells for geothermal applications. India has identified geothermal cooperation opportunities with Australia, Iceland and Saudi Arabia. Globally, geothermal power capacity reached 15.67 GW by the end of 2025, with Indonesia, the US, the Philippines, Türkiye and New Zealand accounting for around 67% of installed capacity, as India works towards its Net Zero target for 2070.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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