Govt Unveils First National Geothermal Energy Policy

• First National Geothermal Policy launched to drive exploration and project development
• Incentives, concessional land, priority transmission, financial support, duty/GST exemptions, and 100% FDI
• Implementation, pilot projects, global collaborations, Centres of Excellence, and oil & gas tie-ups to repurpose idle wells

India has initiated its first National Policy on Geothermal Energy, which provides a framework for the exploration, assessment of resources, and project development within the country.

Administered by MNRE (Ministry of New and Renewable Energy), the program will enable geothermal resources to be a consistent and dependable new component in the renewable energy mix of India.

The Geological Survey of India (GSI) reported hot springs with surface temperatures ranging between 35 to 89 degrees Celsius, in identifying 381 hot springs in 10 geothermal provinces (Ladakh, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Sikkim, Jharkhand, Chhattisgarh, Gujarat, Odisha, Maharashtra, and Telangana). 

Geothermal energy is a dependable renewable energy baseload option with tare ratios exceeding 80 percent for operating roof tops. Geothermal energy can be utilized for electricity generation, direct use applications including heating, cooling, agriculture, aquaculture, industrial applications and geo-tourism.

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The policy describes several support measures which include concessional land allotment, priority access to transmission, and financial support at national and local levels including viability gap funding, concessional loans, sovereign green bonds, and customs duty and GST exemptions on geothermal equipment.

The policy also encourages partnerships between geothermal developers and oil and gas companies to make use of their experience and idle wells. The policy also provides incentives for technology development and indigenous manufacturing in order to reduce dependency on imports, with 100 percent FDI permitted.

Implementation will take place through international partnerships, pilot projects funded under the renewable energy R&D programme, and the establishment of Centres of Excellence in Geothermal Energy. Progress will be reported periodically through certificates of resource assessment and specified milestones for deployment.

The policy includes both high-enthalpy resources and low to medium enthalpy resource development, and positions geothermal energy development as a sustainable and complementary resource for India's future energy development strategies.