The Ministry of New and Renewable Energy signalled that it may consider a national programme to financially support geothermal projects once it fully assesses their viability and technical feasibility. This follows the recent release of the National Policy on Geothermal Energy (2025), which aims to promote the use of the earth’s internal heat as a renewable energy source and support India’s 2070 net-zero target.
Focus on Pilot Projects First
In the initial phase, the policy will prioritize pilot projects and provide detailed guidelines, including a standard operating procedure for geothermal project development. These pilots will lay the groundwork for large-scale adoption while addressing cost and technology challenges.
Addressing High Costs and Global Challenges
The global market still regards geothermal technology, though promising, as expensive. By starting with demonstration projects, the government aims to better understand resource potential, deployment challenges, and cost structures before committing to broader financial support.
Potential National-Level Programme
According to the ministry, “A detailed national-level programme may be considered for development subsequently for providing financial and fiscal support.” However, the ministry has yet to finalize the amount or structure of such financial assistance.
Long-Term Outlook
As reported by etenergyworld.com, the geothermal policy outlines a clear roadmap, including resource assessment, pilot deployment, and capacity building, to create an enabling environment for this emerging sector. If implemented, the programme could position geothermal energy as a valuable complement to India’s renewable energy mix.
