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National Geothermal Energy Policy, 2025
What’s the News?
- The Ministry of New and Renewable Energy (MNRE) has officially notified the National Policy on Geothermal Energy, 2025. It aims to accelerate clean energy transition and strengthen energy security by adding geothermal as a renewable source.
- The policy provides a structured framework for exploration, development, project deployment, and incentives for geothermal energy in India.
Policy Framework & Key Initiatives
- Objectives:
- Integrate geothermal energy into India’s renewable mix to provide baseload power (24/7 supply).
- Enable direct uses: district heating/cooling, greenhouse farming, aquaculture, and ground source heat pumps (GSHPs).
- Repurpose abandoned oil and gas wells for geothermal extraction.
- Incentives:
- Fiscal: Tax holidays, import duty exemptions, accelerated depreciation, and viability gap funding (VGF).
- Financial: Concessional loans, green bonds, and 100% Foreign Direct Investment (FDI) allowed.
- Governance:
- MNRE designated as the nodal agency for regulatory oversight.
- Single-window clearances and state-level nodal agencies to streamline approvals.
Additional Info
- Geothermal Energy:
- It is a form of renewable energy derived from the heat stored in the Earth's core.
- This heat is generated by the radioactive decay of materials within the Earth.
- Geothermal power plants typically use steam or hot water from underground reservoirs to turn turbines and generate electricity.
- A key advantage is its baseload nature, meaning it can provide a consistent and reliable power supply 24/7, unlike intermittent sources like solar and wind.
- Geothermal Provinces in India:
- The Geological Survey of India (GSI) has identified 10 key provinces and over 381 hot springs.
- Puga Valley in Ladakh and Tattapani in Chhattisgarh are two of the most promising sites for pilot projects due to high heat flow.
- Related Government Initiatives:
- India's Net Zero Goal: India has committed to achieving Net Zero carbon emissions by 2070, a target announced at the COP26 summit.
- National Data Repository (NDR): The policy encourages collaboration with the Directorate General of Hydrocarbons (DGH) to use data from the NDR for geothermal exploration, streamlining the process.
- Renewable Energy Research and Technology Development Programme (RE-RTD): The MNRE provides financial support under this program to R&D projects in the renewable energy sector, including geothermal energy.