India has released its first National Geothermal Energy Policy 2025. ABC Live audits the policy with data, challenges, and global lessons.
New Delhi (ABC Live): The Government of India has officially notified the National Geothermal Energy Policy 2025. This is a landmark step to unlock one of the country’s most overlooked renewable sources. The policy supports India’s 2070 Net Zero goal. It aims to bring geothermal power into the clean energy mix, widen the renewable portfolio, and improve energy security.
Unlike solar and wind, geothermal is a steady baseload energy source. Globally, it delivers usage factors above 75%. However, India’s progress has remained slow, with only trial projects in place. With the 2025 policy and five new projects, MNRE signals a shift toward this resource.
Key Highlights of the National Geothermal Energy Policy 2025
- Research & Best Practices: Encourages global learning and cooperation between ministries under MNRE.
- Integration with National Goals: Connects geothermal to Net Zero 2070 and renewable targets.
- Diverse Applications: Covers power generation, heating, farming, aquaculture, cooling, and desalination.
- Technology Push: Promotes Enhanced/Advanced Geothermal Systems (EGS/AGS), hybrid geothermal-solar plants, and reuse of old oil wells.
- Partnerships: Incentives for public-private ventures with states, PSUs, and global leaders like Iceland and Kenya.
- Ecosystem Growth: Focuses on skill building, training, and a strong public-private network.
India’s Geothermal Baseline: By the Numbers
| Indicator (2025) | India | Global |
|---|---|---|
| Installed capacity | ~0–1 MW (trial stage) | 16,873 MW (end-2024) |
| Capacity use | Not available | >75% geothermal vs <30% wind, <15% solar |
| Hot spots | Ladakh (Puga, Chumathang), Uttarakhand, Himachal, Gujarat | — |
| Direct-use | Minimal | China: 120 million m² heating (2024) |
? In short: India is still at the trial stage, while geothermal abroad is already proven.
Global Comparisons
- Iceland: 90% of homes use geothermal heat.
- Philippines & Indonesia: In the world’s top five producers.
- Kenya: Over 40% of grid power is geothermal.
- China: World leader in heating, with 120 million m² covered by 2024.
Therefore, India lags behind. In addition, it must decide whether to follow the Kenyan power model or the Chinese heating model.
India vs China Snapshot (2025)
| Dimension | India (policy start) | China (mature market) |
|---|---|---|
| Power capacity | ~1 MW | ~1 GW+ |
| Heating/cooling | Minimal | 120 million m² (2024) |
| Policy | First national policy; 5 pilots | Multi-level programs since the 2010s |
| Costs | High at the entry stage | Lower with subsidies and scale |
? Takeaway: India’s best near-term chance lies in heating and cooling for cities and campuses. At the same time, Ladakh can host early power projects.
Cost and Technology Trends
- Global power costs fell 16% in 2024 (IRENA).
- High use rates (75–90%) make geothermal cheaper over time.
- IEA notes that oil and gas drilling skills can reduce costs by 2035. As a result, India’s plan to reuse O&G sites looks practical.
Pilot Projects and Quick Wins
MNRE started five projects in 2025. They include:
- Resource mapping.
- Pilot power plants in Ladakh.
- Heating projects in farming and aquaculture.
For example, greenhouses and cold storage can adopt geothermal quickly. Additionally, city cooling pilots could reduce fossil fuel use.
Performance Audit: Opportunities vs Risks
Opportunities
- Steady Power ? Adds stability to the grid.
- Energy Security ? Cuts fuel imports.
- New Business ? GSHPs, hybrid plants, and service models.
- Climate Value ? Decarbonises urban cooling and industrial heat.
Risks
- High Drilling Costs with uncertain results.
- Finance Issues: No risk insurance yet.
- Policy Overlap between ministries and states.
- Low Awareness: Solar and wind dominate the debate.
Therefore, the MNRE must allocate risk-sharing funds, secure bankable PPAs, and expedite clearances. Otherwise, the policy may stall.
Scenario: What if India Targets 300 MW by 2030?
- Output: At 75% use, 300 MW = 1.97 TWh/year ? power for ~1.3 million homes.
- Heating/cooling: Could save even more fuel.
- Needs: Risk cover, state pilots, and global tie-ups.
? How This Report Is Unique
Most outlets will repeat MNRE’s note. ABC Live adds:
1. Data Audit: From 16,873 MW global capacity to China’s 120 million m² heating, plus India’s zero baseline.
2. Global Lens: Compares India with China, Kenya, Iceland, Philippines.
3. Policy + Finance + Tech: Links rules with funding gaps and EGS/solar hybrid tools.
4. Honest View: Flags cost and policy risks.
? This is India’s first performance audit of the geothermal policy.
Why ABC Live Publishes This Now
- Timing: First full geothermal framework.
- Transition: Baseload renewables are vital for Net Zero.
- Learning: India must take cues from China, Kenya, and Iceland.
As a result, this is the right moment to test India’s geothermal readiness.
Editor’s Note
Geothermal has been India’s “forgotten renewable.” The 2025 policy is overdue for recognition. However, success will depend on risk-sharing, pilots, and private capital. If done right, geothermal can become India’s clean baseload backbone.
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