National Geothermal Energy Policy by MNRE

By By Rediff Money Desk, New Delhi
Sep 16, 2025 18:01
MNRE prepares national policy to promote geothermal energy for India's renewable energy and net-zero goals. Details inside.
New Delhi, Sep 16 (PTI) Ministry of New and Renewable Energy (MNRE) has prepared a national policy to promote geothermal energy which can be an additional source in meeting India's renewable energy and net-zero goals.

Geothermal energy harnesses heat stored within the Earth's crust. High-enthalpy resources, often associated with volcanic regions, geysers and hot springs are primarily used for electricity generation.

As per the document on National Policy on Geothermal Energy, India's renewable energy (RE) growth is vital for achieving ambitious climate change targets and the 2070 net-zero goal. India's geothermal potential, rooted in its unique geological settings, remains largely untapped.

While solar, wind, bioenergy, and hydropower dominate RE capacity, geothermal energy can be a significant additional resource, and geothermal energy is included under the MNRE's Allocation of Business Rules.

The goal of the policy is to improve research capabilities on geothermal energy development and deployment, advanced geothermal exploration, improve drilling techniques, geothermal reservoir management and cost-effective power generation, and direct-use technologies adoption.

It aims to collaborate with ministries, international geothermal development bodies and national research institutes to incorporate global best practices in exploration, resource assessment, and technology deployment.

Besides, it aims to establish and promote advanced geothermal exploration through coordination with the oil and gas sector, involving deep and multilateral drilling, repurposing of abandoned wells for large-scale power generation in India.

On geothermal potential sites in India, the policy said 10 geothermal provinces have been identified by the Geological Survey of India (GSI) which include Himalayan Geothermal Province, Naga-Lusai, Andaman Nicobar Islands and Son-Narmada Tapi, among others.

The ministry shall facilitate the creation of a geothermal resource data repository through Intergovernmental/inter-agency collaboration.

The Directorate General of Hydrocarbons (DGH) Data Repository may be made available for utilization by eligible operators or developers for geothermal prospective analysis, subject to compliance with the procedures and guidelines prescribed under the National Data Repository framework.

Operators or developers shall be permitted to conduct geothermal resource assessment surveys for research and development purposes, as well as detailed assessments. Upon completion of the planned surveys, operators shall be required to submit all acquired geothermal data to the designated geothermal data repository.

Currently, 100 per cent FDI is allowed in renewables. Preference shall be given to indigenous geothermal technologies for reduction of dependency on imported equipment by encouraging local innovation in drilling and downhole measurement/monitoring technologies and reservoir management.

To promote geothermal energy, the central government, state governments and agencies may issue additional guidelines or incentives for geothermal energy development which is both sustainable and bankable.
Source: PTI
Read More On:
geothermal energymnrenational policyrenewable energyindia
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