National Policy on Geothermal Energy (2025)

In a landmark move to diversify India’s renewable energy portfolio and advance its Net Zero 2070 goal, the government has notified the National Policy on Geothermal Energy (2025). The policy aims to tap into the country’s largely unexplored geothermal potential, positioning it as a dependable pillar in India’s sustainable energy transition.

Framework and Oversight
The comprehensive regulatory framework places stewardship responsibilities with the Ministry of New and Renewable Energy (MNRE), which will oversee exploration, development, and deployment. The policy emphasizes research promotion, inter-ministerial collaboration, and adoption of global best practices.

Beyond Power Generation
Geothermal energy will not only support round-the-clock base-load electricity but also serve direct-use applications such as space heating and cooling, greenhouse farming, aquaculture, desalination, tourism, and cold storage solutions. Ground Source Heat Pumps (GSHPs) for district cooling and agricultural use are among the highlighted applications.

Pilot Phase Launched
As part of its first phase, the MNRE has sanctioned five pilot projects focusing on demonstration and resource assessment. These projects are expected to build confidence, attract investment, and generate insights for scaling up.

Significance
Unlike solar and wind, geothermal offers continuous renewable power, making it a crucial complement in India’s clean energy mix. By institutionalizing its development, the new policy is expected to reduce fossil fuel dependence, expand renewable capacity, and strengthen India’s leadership in sustainable energy solutions.