National Policy on Geothermal Energy 2025

20.09.2025

National Policy on Geothermal Energy 2025

Context

In September 2025, the Government of India notified its first National Policy on Geothermal Energy, marking a decisive step to diversify the renewable energy portfolio. The policy seeks to harness untapped geothermal resources, support the 2070 Net Zero goal, and strengthen energy security by introducing an always-available, clean baseload power source.

About the Policy

• Exploration & Development: MNRE-led framework; 5 pilots (Barmer oil fields, Tawang heating, shallow demo, cooling, solar–geothermal hybrid).
   
• Applications: Power, heating/cooling, farming, aquaculture, food processing, desalination, storage, tourism.
   
• Technology & Innovation: Hybrid models, reuse of wells, EGS/AGS systems.
   
• Regulatory & Fiscal Support: VGF, R&D incentives, tax breaks, 100% FDI, GST/duty exemptions, carbon credits; global collaborations (U.S., Iceland, Norway).
  
   

Significance

1. Energy Security

• Provides stable, year-round baseload power, complementing variable solar and wind.
• Reduces dependency on imported hydrocarbons, insulating the economy from price shocks.
   

1. Rural & Industrial Benefits

• Geothermal heating/cooling aids agriculture, aquaculture, cold storage, and food processing.
• Supports rural livelihoods and enhances climate resilience.
   

Geopolitical & Technological Implications

• Positions India among leading geothermal nations, advancing energy sovereignty.
• Aligns with SDG 7 (Clean Energy) and SDG 13 (Climate Action).
• Promotes technology transfer, skill development, and R&D partnerships.
• State energy boards, oil companies, and global agencies to build a domestic ecosystem.
   

Challenges

• Limited domestic expertise and data gaps in geothermal potential.
• High upfront exploration and drilling costs.
• Environmental risks (micro-seismicity, water use, land subsidence).
• Need for skilled manpower and adaptive regulation.
   

Way Forward

• Continuous monitoring of pilot projects for scalability and viability.
• Establish robust data repositories and knowledge-sharing networks.
• Train human resources and integrate global best practices.
• Strengthen inter-ministerial and center–state collaboration.
• Responsive fiscal and regulatory support to attract investment.
   

Conclusion

The National Policy on Geothermal Energy 2025 is a transformative milestone, integrating clean baseload power into India’s mainstream energy planning. By combining innovation, international cooperation, and rural development opportunities, the policy promises to boost energy resilience, rural prosperity, and technological advancement, while reinforcing India’s climate commitments.