Geothermal energy offers India a baseload renewable option, yet it remains at the demonstration stage. Examine the potential and constraints in light of the National Policy on Geothermal Energy, 2025.

Geothermal energy is heat from the Earth's interior. Unlike solar and wind, it is available round the clock in any weather. India's estimated potential is about 10,600 MW [1], yet no commercial plant exists. The National Policy on Geothermal Energy, notified on 15 September 2025 with MNRE as the nodal ministry [1], aims to close this gap.

Potential

• Baseload renewable: its steady output balances intermittent solar and wind, which supports Net Zero 2070 [1].
• Direct use: district heating, ground source heat pumps, agriculture and aquaculture can replace fuel trucked into cold regions such as Ladakh [1].
• First deep wells: in July 2026, ONGC Energy Centre commissioned two 1,000 m wells at Puga Valley, Ladakh. They lead to a 1 MW demonstration plant [2].
• Reusing old wells: an IIT Madras R&D project is studying abandoned oil wells [3]. Reusing a well avoids the cost of drilling a new one.
• Low-temperature technology: SCCL's 20 kW Binary ORC pilot at Manuguru, funded by the Ministry of Coal, shows that moderate heat can be used [4].

Constraints

• Resource risk: a first round of 3–5 test wells costs US$20–30 million, and nobody knows in advance whether the heat and water flow will be enough [5].
• Financing gap: banks rarely lend for unproven fields. Feed-in tariffs pay only after a plant is running [5].
• History of false starts: NHPC's 2001 pilot at Tattapani, Chhattisgarh never produced grid power [6].
• Remote sites: places like Puga are far from demand centres, so grid connection or local use must be planned early.
• Fragmented governance: it is a policy, not an Act. MNRE, MoPNG/DGH and the Ministry of Coal all have to coordinate [1].

Policy response and remaining gaps

• Enablers: a framework for public–private participation, a national data repository, pilot projects and Centres of Excellence [2], plus enhanced geothermal systems and reuse of abandoned wells [1].
• Gap: there is no clear rule on who pays if a well comes up dry. Turkey and Kenya grew geothermal after the state drilled first or shared the cost. Japan stalled for nearly 20 years after it withdrew support in 2002 [5].

Geothermal will not be a large source of grid power soon, but it is a valuable niche source of baseload power and heat where the resource is proven. A drilling-risk fund, public test-well data and steady long-term support, using ONGC's drilling skills, can move the 2025 policy from pilots to projects. This would advance SDG 7 and India's Net Zero 2070 commitment.