India's National Geothermal Energy Policy

• New National Policy on Geothermal Energy: India's recent policy announced by the Ministry of New and Renewable Energy (MNRE) aims to enhance geothermal energy utilization, leveraging international collaboration for commercial viability.

• International Collaborations: Research firms from the US, Iceland, and Norway are interested in pilot projects in regions like the Gulf of Cambay, Arunachal Pradesh, and Uttarakhand. The government seeks to explore technological collaborations with the US and Indonesia for enhanced geothermal systems.

• Geothermal Energy Basics: Geothermal energy is harnessed from the Earth's heat, capable of generating electricity through steam. It utilizes hot water springs and deep reservoirs, with applications in heating, cooling, greenhouses, and aquaculture.

• Detection of Hot Springs: The Geological Survey of India (GSI) has identified 381 hot springs across India, with surface temperatures ranging from 35°C to 89°C.

• Estimation of Geothermal Potential: India has an estimated geothermal potential of 10.6 gigawatts (GW), primarily located in:

  • Himalayan Geothermal Province: Uttarakhand, Himachal Pradesh, Ladakh, Jammu and Kashmir, Arunachal Pradesh.
  • Cambay Graben: Gujarat, including abandoned oil wells.
  • Andaman and Nicobar Islands.

• Economic Impact: Utilizing geothermal energy could significantly reduce electricity costs in remote areas, e.g., Andaman's costs could drop from ₹30-32 per unit to about ₹10-11; Ladakh’s heating needs can also be met with geothermal sources.

• Global Context: Less than 17 GW of geothermal energy is currently harnessed worldwide, with the US, Indonesia, and Philippines leading. The International Energy Agency (IEA) predicts India's geothermal capacity could reach 4.2 GW by 2035 and nearly 100 GW by 2045, attributing significant market potential to China, the US, and India.

• Refurbishing Oil Wells: Oil and gas firms are repurposing abandoned wells for geothermal energy. IIT Madras is piloting a project in Barmer, Rajasthan, aimed at retrofitting unproductive oil wells to generate electricity.

• Funding Challenges: The developement costs stand at approximately ₹36 crore per megawatt (MW). The new policy includes financial support for R&D and pilot projects and suggests a Viability Gap Funding (VGF) scheme.

• Policy Framework: The MNRE's National Policy on Geothermal Energy facilitates cooperation between stakeholders, including the Ministry of Petroleum and Natural Gas, and supports the commercial design and technical feasibility of geothermal projects.

• Future Directions: The MNRE aims to expedite project approvals, having already sanctioned five projects since the policy's announcement. The policy responds to previous recommendations from a task force established in August 2024 to harness geothermal energy in India.

These key points summarize India's initiatives and strategies in developing geothermal energy, highlighting potential economic benefits, international collaborations, and challenges faced in the sector.