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The Indian government has officially launched its inaugural national policy on geothermal energy, a significant step toward unlocking the potential of this often-overlooked renewable resource. With an estimated capacity of 10 gigawatts, geothermal energy can provide a consistent and reliable source of power, distinct from the intermittent nature of solar and wind energy. This new policy, unveiled by the Ministry of New and Renewable Energy (MNRE), aims to create a comprehensive framework that encourages exploration, development, and utilization of geothermal resources across the country.

To support this ambitious initiative, the policy proposes various financial incentives, including tax breaks, viability gap funding, and long-term concessional loans. These measures are intended to address the high upfront costs associated with geothermal projects, which currently amount to around ₹36 crore per megawatt. Initial assessments suggest that the cost of electricity generation could be approximately ₹10 per unit in the early stages, but as technology advances and more projects come online, costs are expected to decline.

The MNRE has identified 381 hot springs across ten geothermal provinces, including regions such as Ladakh, Himachal Pradesh, and Uttarakhand, which hold promise for both power generation and direct-use applications such as heating and cooling. The policy encourages partnerships between geothermal developers and oil and gas companies, leveraging existing infrastructure and expertise to accelerate the development of geothermal power plants. This approach could minimize capital investments, as abandoned oil wells can be repurposed for geothermal energy extraction.

India's geothermal policy aligns with the nation's broader climate goals, particularly its commitment to achieving net-zero emissions by 2070. The MNRE has sanctioned five pilot projects aimed at exploring the feasibility of geothermal energy, including innovative uses of geothermal cooling systems for air conditioning. These pilot endeavors are crucial for assessing the commercial viability of geothermal energy and establishing a solid foundation for future development.

International collaboration is also a key element of the policy, with the government seeking partnerships with countries like the United States, Norway, and Iceland to enhance its geothermal technology capabilities. As global geothermal capacity continues to expand, India's entry into this sector could position it as a significant player in the renewable energy landscape.

The introduction of this policy is not just an opportunity for energy diversification; it is a call to action for industries, researchers, and investors to engage with geothermal energy, which has the potential to become a cornerstone of India’s sustainable energy future. By fostering a conducive environment for investment and innovation, India stands at a pivotal moment in its journey towards a cleaner, greener energy mix.