National Geothermal Energy Policy India 2025 launched by MNRE to promote renewable energy, pilot projects, fiscal incentives, and geothermal power for net-zero emissions.
India Launches First National Geothermal Energy Policy: A Step Towards Sustainable Energy
Introduction to India’s Geothermal Energy Policy
On September 17, 2025, the Ministry of New and Renewable Energy (MNRE) officially launched India’s inaugural National Policy on Geothermal Energy. This landmark policy aims to harness the country’s untapped geothermal potential, positioning it as a significant contributor to India’s renewable energy landscape. The policy outlines strategic measures to promote geothermal energy for power generation and direct-use applications, aligning with the nation’s commitment to achieving net-zero emissions by 2070.
Objectives and Vision of the Policy
The primary objective of the National Geothermal Energy Policy is to establish geothermal energy as a major pillar in India’s renewable energy sector. The policy envisions a sustainable, secure, and responsible geothermal energy sector that contributes significantly to national climate commitments and energy security. Key goals include enhancing research capabilities, improving drilling techniques, and promoting the adoption of geothermal technologies in various sectors.
Strategic Initiatives and Implementation
The policy outlines several strategic initiatives to promote geothermal energy development:
- Research and Development: Establishing advanced geothermal exploration techniques and improving reservoir management.
- Technology Deployment: Encouraging the adoption of geothermal technologies in agriculture, aquaculture, and space heating/cooling through Ground Source Heat Pumps (GSHPs).
- Regulatory Framework: Implementing clear guidelines for project approvals and providing long-term exploration leases of up to 30 years.
- Financial Support: Offering fiscal incentives such as tax holidays, import duty exemptions, and property tax exemptions to attract investments.
Collaboration with Other Sectors
The policy promotes joint ventures between geothermal developers and oil, gas, and mineral companies. It encourages collaboration with the Ministry of Petroleum and Natural Gas (MoPNG) and the Directorate General of Hydrocarbons (DGH) to convert abandoned oil and gas wells for geothermal utilization. This approach aims to optimize existing infrastructure and reduce development costs.
Pilot Projects and Future Prospects
In its initial phase, the MNRE has sanctioned five pilot geothermal projects to assess the feasibility and potential of geothermal energy in India. These projects will serve as models for future developments and provide valuable data to refine the policy’s implementation strategies.
Why This News is Important
Alignment with Net-Zero Emissions Target
The launch of the National Geothermal Energy Policy underscores India’s commitment to achieving its ambitious target of net-zero emissions by 2070. Geothermal energy, being a stable and continuous source of power, can significantly contribute to reducing dependence on fossil fuels and mitigating climate change.
Diversification of Renewable Energy Sources
By introducing geothermal energy into its renewable energy portfolio, India aims to diversify its energy sources, enhancing energy security and reducing vulnerability to fluctuations in solar and wind energy production.
Economic and Technological Advancements
The policy encourages innovation and technological advancements in geothermal energy, potentially leading to the development of indigenous technologies. This can stimulate economic growth, create employment opportunities, and position India as a leader in geothermal energy technology.
Regional Development and Infrastructure Utilization
The emphasis on converting abandoned oil and gas wells for geothermal energy utilization can revitalize existing infrastructure, promote regional development, and reduce environmental degradation associated with abandoned sites.
Educational and Research Opportunities
The policy’s focus on research and development opens avenues for academic institutions and research organizations to engage in geothermal studies, fostering a skilled workforce and advancing scientific knowledge in the field.
Historical Context
Geothermal energy has been utilized for centuries in various parts of the world, primarily for heating and bathing purposes. In India, the potential for geothermal energy has been recognized due to the presence of hot springs and volcanic regions, particularly in states like Uttarakhand and Himachal Pradesh. However, the development of geothermal energy has been limited due to technological challenges, lack of infrastructure, and regulatory hurdles.
The formation of a task force by the MNRE in August 2024 marked a significant step towards addressing these challenges. The task force’s recommendations laid the foundation for the National Geothermal Energy Policy, aiming to unlock the country’s geothermal potential and integrate it into the national energy strategy.
Key Takeaways from India’s National Geothermal Energy Policy
| No. | Key Takeaway |
|---|---|
| 1. | Policy Launch: India’s first National Geothermal Energy Policy was launched on September 17, 2025, by the MNRE. |
| 2. | Net-Zero Commitment: The policy aligns with India’s goal to achieve net-zero emissions by 2070. |
| 3. | Research and Development: Emphasis on enhancing research capabilities and improving geothermal technologies. |
| 4. | Fiscal Incentives: Introduction of tax holidays, import duty exemptions, and property tax exemptions to attract investments. |
| 5. | Pilot Projects: Five pilot geothermal projects have been sanctioned to assess feasibility and gather data for future developments. |
FAQs on India’s National Geothermal Energy Policy
Q1: What is India’s National Geothermal Energy Policy?
A: It is India’s first comprehensive policy aimed at promoting geothermal energy for power generation and direct-use applications, launched by the MNRE in September 2025.
Q2: What are the main objectives of the policy?
A: The policy aims to promote research, improve geothermal technology deployment, attract investments, and contribute to India’s renewable energy targets and net-zero emissions by 2070.
Q3: Which ministry launched India’s National Geothermal Energy Policy?
A: The Ministry of New and Renewable Energy (MNRE) launched the policy.
Q4: How does the policy support investors and developers?
A: It provides fiscal incentives such as tax holidays, import duty exemptions, property tax exemptions, and long-term exploration leases of up to 30 years.
Q5: Which states in India have high geothermal potential?
A: States like Uttarakhand, Himachal Pradesh, and parts of the North-Eastern region have significant geothermal potential due to hot springs and volcanic activity.
Q6: How does the policy contribute to India’s net-zero emissions target?
A: By promoting a stable, renewable source of energy, it reduces dependence on fossil fuels and supports sustainable energy generation.
Q7: What is the role of pilot projects in this policy?
A: Five pilot geothermal projects have been sanctioned to test feasibility, gather data, and refine implementation strategies.
Q8: Can abandoned oil and gas wells be used for geothermal energy?
A: Yes, the policy encourages converting abandoned oil and gas wells into geothermal energy projects, optimizing existing infrastructure.
Q9: What kind of applications does the policy promote apart from power generation?
A: Direct-use applications like agriculture heating, aquaculture, space heating, and cooling via Ground Source Heat Pumps (GSHPs) are promoted.
Q10: How does the policy encourage research and academic engagement?
A: By funding research initiatives, promoting studies in geothermal energy, and supporting collaboration with academic and research institutions.
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