India’s First National Policy on Geothermal Energy:
The Ministry of New and Renewable Energy (MNRE) has launched India’s first National Policy on Geothermal Energy 2025, aiming to tap India’s vast but underutilized geothermal potential to advance the nation’s Net Zero 2070 commitment, ensure energy security, and diversify its renewable energy mix.Geothermal energy refers to the heat derived from the Earth’s interior, which can be used for heating buildings, and generating electricity. It is considered a renewable energy source because the Earth continuously produces heat within its core.
National Geothermal Energy Policy 2025:
- The policy encompasses all major aspects of geothermal energy development including:
- Geothermal Resource Assessment
- Power Production Systems
- Direct-use Applications
- Ground (Geothermal) Source Heat Pumps (GSHP)
- Utilization of abandoned oil and gas wells for geothermal energy extraction is encouraged.
- Extraction of valuable mineral by-products like silica, borax, cesium, and lithium will be regulated under the Mines and Minerals (Development and Regulation) Act (MMDR Act),1957 with applicable royalties.
- Promotion of Emerging Tech: It also promotes emerging and innovative technologies such as:
- Enhanced Geothermal Systems (EGS)
- Advanced Geothermal Systems (AGS)
- Geothermal energy storage
- Offshore geothermal wells
- Geothermal Resource Data Repository: Establishment of a comprehensive geothermal resource data repository through inter-ministerial collaboration with agencies such as the Ministry of Mines, Ministry of Earth Sciences, Geological Survey of India (GSI), and National Data Repository (NDR).
- Permission for resource assessment surveys will be granted to developers for R&D and feasibility studies.
- Fiscal & Financial Support: Under the Renewable Energy Research and Technology Development Programme (RE-RTD):
- Up to 100% financial support for government and non-profit research institutions.
- Up to 70% support for private sector entities including start-ups and manufacturing units.
- Additional support mechanisms:
- Inclusion under the Indian Carbon Credit Trading Scheme.
- Waiver of open access charges.
- Eligibility under Renewable Purchase Obligations (RPOs).
- State-Level Guidelines: State/UT governments will have the authority to issue:
- Exploration leases (valid for 3–5 years)
- Development leases for power generation or direct-use (valid for up to 30 years)
- Establishment of a single-window clearance mechanism through designated state nodal agencies.
