Digging deep: India's geothermal policy should be pursued with care

The Ministry of New and Renewable Energy has taken a forward-looking step with the launch of the National Policy on Geothermal Energy, setting the framework for exploring and developing India’s geothermal resources. For a country that has set ambitious decarbonisation targets, geothermal energy presents a largely untapped, zero-carbon source that can supplement solar and wind, offering round-the-clock renewable power. However, the promise must be matched by caution and responsibility. Geothermal energy harnesses heat stored within the earth’s crust. Unlike solar and wind, it does not suffer from intermittency, making it a stable source for base-load electricity generation. Additionally, it has no fuel cost, only operation and maintenance expenses and high-capacity utilisation factors exceeding 80 per cent. It also offers diversified applications, from heating and cooling in buildings, drying of agricultural products, to industrial processing where heat demand is continuous.

 

India’s geothermal endowment is significant, though its share in the energy mix remains negligible. In its Geothermal Atlas of India 2022 report, the Geological Survey of India estimated a total potential of around 10,600 megawatts (Mw) across the country. But as of 2025, India has not developed even 1 Mw of geothermal power. In this context, the policy rightly identifies the gaps that need to be bridged before any meaningful geothermal rollout. These include improvement in research capabilities in exploration, drilling technologies, and reservoir management; collaboration with international geothermal-development bodies that have years of experience, such as those in Iceland, the United States, and New Zealand; and the deployment of geothermal heating and cooling solutions for sectors beyond power generation.

 

However, geothermal energy comes with a unique set of environmental and social risks, which should not be neglected. An improper discharge of drilling-related contaminants can allow dangerous chemicals like arsenic, mercury, and boron to flow into groundwater. An unexpected release of geothermal fluid, or a blowout, as happened in Ladakh’s Puga Valley in 2022, can also cause serious setbacks to projects. In this regard, the policy calls for adopting indigenous technology for the safe, non-polluting use of geothermal fluids or byproducts, including their reinjection to the geothermal source. Besides, geothermal sites often lie along tectonic fault lines, and drilling can exacerbate seismic activity. India, prone to earthquakes in several regions, cannot afford to dismiss such risks as remote possibilities.

 

The challenge thus lies in how India can move forward. Assessments of environmental and social impacts must be mandatory, comprehensive, and transparent. Community consultation is crucial since most geothermal projects are located in ecologically sensitive or remote areas. Strict monitoring and disclosure of contaminants, seismic activity, and water usage should be built into every project. International best practices such as reinjecting geothermal fluids must become non-negotiable standards in India’s geothermal projects. India has sometimes faltered by rushing into energy ventures without adequately preparing for the social and ecological fallout, from hydropower dams in fragile mountain ecosystems to coal projects in tribal belts. Geothermal development must avoid repeating these mistakes.