Despite early exploration in the 1970s, geothermal energy remains marginal in India's energy mix. Examine the constraints and assess the prospects under the National Policy on Geothermal Energy, 2025.

In 1976, the Geological Survey of India drilled about a dozen shallow holes (up to 200 m) at Manikaran and Rasoi, Kullu, "with little luck" [1]. Fifty years later, India's geothermal potential of about 10,600 MW is still theoretical [2]. Official sources admit that commercial-scale power "is yet to be established" [3]. Geology, risk and policy explain this lag.

Constraints

• Low-temperature resource: The hottest water found under Puga is only 135°C. At Gandhinagar, 70–80°C wells produced just 50–90 kW [3]. Most sites are better suited to heating than to running turbines.
• Potential exists mostly on paper: The 10,600 MW figure comes from GSI's Geothermal Atlas (2022). Of 381 hot springs, only 42 sites are "promising," and all still need further exploration [2].
• Drilling risk: Heat reaches near the surface only along faults and fractures [3]. An expensive well may therefore come up dry, as happened at Manikaran [1].
• Late policy and state-led effort: A national framework arrived only in September 2025 [2]. Drilling is still done by public bodies such as the ONGC Energy Centre [3].
• Socio-ecological sensitivity: Local people use Himalayan springs for bathing and cooking, and the springs are central to local religious belief [1]. Drilling there needs safeguards.

Prospects under the 2025 Policy

• Institutional push: With MNRE as the nodal ministry, the policy backs drilling, a national geothermal data repository, pilot projects and Centres of Excellence, and it is open to both public and private firms [3].
• First milestone: In July 2026, two 1,000 m wells were commissioned at Puga, Ladakh, leading towards India's first 1 MW demonstration plant [3].
• Lower drilling risk: The policy allows abandoned oil and gas wells to be repurposed, with pilots at Ankleshwar [3] and an IIT Madras R&D project [2].
• Direct use: Ground Source Heat Pumps and a Hyderabad geothermal cooling project [3] build on Ladakh's 1976 greenhouse use [1].
• Baseload and partnerships: Geothermal is weather-independent, unlike solar and wind [3]. India cooperates with Australia, Iceland, Saudi Arabia and the USA [2].
• Limits: The policy summary sets no capacity target, timeline or tariff. Growth still depends on public money [3].

Overall, geothermal will remain a small part of grid supply, but it can provide steady, low-carbon energy for remote regions and for heating and cooling. The way forward is to open the data repository early, share exploration risk with private investors, and fund direct-use projects through RE-RTD [3]. Done well, geothermal can be a small but steady support for Net Zero 2070 [3] and SDG 7.