India Advances Geothermal Energy with New Policy and First Wells at Ladakh’s Puga Valley for Clean Energy Transition

Recent Developments:

• India has moved from geothermal resource assessment towards field-level implementation, following the notification of the National Policy on Geothermal Energy in September 2025 and the commissioning of the country’s first 2 geothermal wells at Puga Valley, Ladakh, in July 2026.
• The 2 wells, commissioned by the ONGC Energy Centre, are located at an altitude of more than 14,000 feet and are approximately 1,000 metres deep, supporting geothermal reservoir assessment and laying the foundation for India’s proposed 1 MW demonstration geothermal power project.
• The Ministry of New and Renewable Energy is the nodal ministry for implementing the National Policy on Geothermal Energy, which seeks to create a systematic framework for exploration, technology development, resource utilisation and private-sector participation.
• India possesses an estimated theoretical geothermal resource potential of approximately 10,600 MW, while the Geological Survey of India has documented 381 hot springs and identified 42 geothermal manifestations as promising for electricity generation and direct-heat applications.

Understanding Geothermal Energy:

Meaning and Characteristics:

• Geothermal energy is renewable energy obtained from the natural heat present inside the Earth, which can be used for electricity generation as well as direct heating and cooling.
• It is a steady, low-carbon and weather-independent energy source, making it different from variable renewable sources such as solar and wind.
• Geothermal resources can therefore provide round-the-clock energy, improve renewable-energy reliability and reduce dependence on fossil fuels.
• The resource is particularly significant in regions where geological structures allow underground heat to accumulate near the surface in the form of hot water, steam or heated rocks.

Origin of Earth’s Internal Heat:

• Earth’s internal heat originates mainly from radioactive decay of elements such as uranium, thorium and potassium, along with residual heat retained from the planet’s formation.
• This internal heat drives mantle convection, which contributes to major geological processes including tectonic activity, volcanism, earthquakes and mountain building.
• In tectonically active regions, faults and fractures can provide pathways through which underground heat and fluids move towards the surface, creating exploitable geothermal reservoirs.

How Geothermal Energy is Harnessed:

Electricity Generation:

• Geothermal power plants use deep wells to access hot water and steam, which can be used to drive turbines connected to electricity generators.
• After heat extraction, the cooled geothermal fluid can be reinjected into underground reservoirs, helping maintain reservoir pressure and supporting long-term resource utilisation.
• Depending on resource temperature and geological conditions, geothermal systems can employ different technologies, including dry-steam, flash-steam and binary-cycle systems.

Direct-Heat Applications:

• Geothermal heat can be directly used for district heating, agriculture, aquaculture, space heating and cooling, thereby reducing the need to convert thermal energy into electricity.
• Ground Source Heat Pumps can use relatively shallow geothermal heat for efficient heating and cooling of buildings.
• Such applications can be particularly useful in cold regions and for agricultural activities requiring controlled temperatures.

India’s Geothermal Energy Potential:

Resource Base:

• India has considerable geothermal potential because of its diverse geological and tectonic characteristics, although commercial exploitation remains at an early stage.
• The Geological Survey of India has mapped and studied 381 geothermal or thermally anomalous areas, forming an important scientific basis for future exploration.
• The estimated theoretical potential of approximately 10,600 MW indicates a substantial resource base, although theoretical potential should not be equated with immediately commercially exploitable capacity.
• Among the identified resources, 42 geothermal manifestations have been considered promising for further development of power generation and direct-heat applications.

Major Geothermal Regions:

• Important geothermal provinces include the Himalayan Geothermal Province, Naga-Lusai Province, Andaman and Nicobar Islands, Son-Narmada-Tapi Province, West Coast, Cambay Graben, Aravalli, Mahanadi, Godavari and South Indian Cratonic regions.
• These regions differ in geological structure, reservoir temperature, accessibility and resource quality, requiring location-specific exploration and technology selection.

Puga Valley, Ladakh:

• Puga Valley is among India’s most promising geothermal locations because of its abundant hot springs and favourable underground thermal conditions.
• The commissioning of the first 2 geothermal wells represents a shift from resource identification to experimental utilisation and provides an opportunity to evaluate reservoir characteristics under Indian high-altitude conditions.
• The proposed 1 MW demonstration project can provide valuable information regarding drilling, reservoir management, operating costs and the technical feasibility of geothermal power generation in India.

National Policy Framework for Geothermal Energy:

National Policy on Geothermal Energy, 2025:

• The Government notified the National Policy on Geothermal Energy on 15 September 2025 to establish a framework for the exploration, development and utilisation of geothermal resources.
• The policy promotes systematic exploration, drilling, technology development, reservoir management, direct-use applications, pilot projects, Ground Source Heat Pumps, Centres of Excellence and a national geothermal data repository.
• It also seeks to create conditions for public and private-sector participation, thereby enabling geothermal development beyond government-funded exploration.
• The policy explicitly recognises the possibility of repurposing abandoned oil and gas wells for geothermal energy recovery, subject to technical and economic feasibility.

Research and Technology Development:

• The Renewable Energy Research and Technology Development Programme of the Ministry of New and Renewable Energy supports research institutions and industry in developing indigenous and cost-effective renewable-energy technologies, including geothermal applications.
• Advanced technologies such as Enhanced Geothermal Systems and other engineered geothermal approaches can potentially expand geothermal utilisation beyond naturally occurring high-temperature reservoirs.
• Repurposing existing oil and gas wells can reduce some exploration and drilling requirements by utilising existing well data, drilling expertise and infrastructure, although reservoir conditions must first be technically assessed.

Importance of Geothermal Energy for India:

Energy Security and Clean Energy Transition:

• Geothermal energy can diversify India’s renewable-energy portfolio by adding a firm and continuously available renewable source alongside variable solar and wind power.
• Its domestic availability can strengthen energy security, reduce dependence on imported fossil fuels and support India’s transition towards a low-carbon economy.
• Geothermal power can also complement variable renewable energy by providing stable electricity generation, potentially reducing pressure on energy-storage systems.

Regional and Socio-Economic Benefits:

• Geothermal resources can support heating, agriculture, aquaculture and tourism, creating opportunities beyond electricity generation.
• Remote and geographically isolated regions can potentially benefit from locally available geothermal resources, particularly where conventional fuel supply is costly or difficult.
• Development of geothermal projects can promote local employment, specialised skills, scientific research and clean-energy infrastructure.

Challenges in Geothermal Development:

High Exploration and Drilling Risk:

• Geothermal development requires substantial upfront exploration and drilling expenditure, while the quality and quantity of underground resources may remain uncertain until wells are drilled.
• Unsuccessful drilling can therefore create significant financial risk during the early stages of a project.

Technological and Geological Constraints:

• India requires greater domestic capability in deep drilling, reservoir characterisation, geothermal modelling, corrosion control and reinjection technologies.
• Different geological conditions across geothermal provinces make standardised deployment difficult and require location-specific technological solutions.

Environmental and Social Considerations:

• Geothermal projects can involve land-use requirements, induced seismicity, mineral-rich fluid management and possible contamination risks if geothermal fluids are not properly handled.
• Sustainable development therefore requires appropriate environmental assessment, reservoir monitoring and responsible reinjection practices.

Economic Competitiveness:

• Geothermal projects may face higher initial costs than mature solar and wind technologies because India has limited commercial-scale geothermal deployment experience.
• Achieving cost competitiveness will require demonstration projects, technology learning, domestic manufacturing, concessional finance and risk-sharing mechanisms.

Way Forward:

Building a Geothermal Ecosystem:

• India should strengthen resource mapping, exploratory drilling and geothermal data sharing to reduce uncertainty and improve investor confidence.
• Demonstration projects such as Puga Valley should be used to generate domestic knowledge on reservoir behaviour, drilling economics, plant performance and environmental management.
• Public funding can initially absorb part of the exploration risk, while successful projects can progressively attract private investment and technology partnerships.
• International cooperation with countries having advanced geothermal capabilities, including Australia, Iceland, Saudi Arabia and the United States, can accelerate technology transfer, knowledge sharing and joint research.
• India should integrate geothermal development with its broader Net Zero 2070 strategy, particularly in regions where geothermal resources can provide firm renewable power or direct thermal applications.

Value Addition for UPSC:

Key Analytical Takeaway:

• Geothermal energy represents a firm renewable-energy source that can complement variable solar and wind power, thereby strengthening the reliability and diversity of India’s clean-energy system.
• The Indian case illustrates the transition from resource assessment → policy support → demonstration projects → commercial-scale deployment.
• Puga Valley is strategically important because it provides India with an opportunity to develop indigenous expertise in high-altitude geothermal exploration and reservoir management.
• The central policy challenge is to convert India’s theoretical geothermal potential into commercially viable and environmentally sustainable capacity through risk-sharing, technological development, accurate resource assessment and private-sector participation.