Geothermal Energy Initiatives in India: International Collaborations and Policy Developments
New Delhi, Sep 17 (PTI) – Nations such as Norway and Iceland have expressed keen interest in India’s geothermal energy sector, offering technical support for pilot projects across various locales, according to MNRE Secretary Santosh Kumar Sarangi.
Additionally, the Ministry of New and Renewable Energy (MNRE) plans to explore technology partnerships with countries like the United States and Indonesia to harness India’s geothermal potential, which currently stands at approximately 10 GW, as stated by the senior official during a media briefing on the National Policy on Geothermal Energy (2025).
Regarding the cost-effectiveness of this energy source, Sarangi mentioned that an assessment has yet to be conducted. The technical and commercial viability remains to be established.
“Preliminary estimates indicate that in the initial phases, costs may approximate ₹10 per unit. However, as the projects scale, it is anticipated that costs will decrease. Hence, during the early stages, the government may need to provide assistance akin to the Viability Gap Funding (VGF) utilized for solar and wind initiatives,” Sarangi revealed.
In terms of project costs, he elaborated that the financial outlay is approximately ₹36 crore per megawatt.
The MNRE recently issued a policy aimed at fostering geothermal energy development, recognizing its potential as an additional resource to support India’s renewable energy and net-zero objectives.
“Numerous research entities from Norway and Iceland have demonstrated substantial interest in regions such as the Gulf of Cambay, Arunachal Pradesh, and Uttarakhand, and have dispatched teams for preliminary exploration studies,” Sarangi noted.
Countries like Iceland, Norway, and Finland have adeptly capitalized on their geothermal resources, Sarangi remarked while addressing the press.
According to the Geological Survey of India (GSI), ten geothermal provinces have been identified, including the Himalayan Geothermal Province, Naga-Lusai, Andaman Nicobar Islands, and Son-Narmada Tapi, among others.
The ministry has approved five projects in the sector, marking a pivotal first step towards geothermal energy exploration.
These initiatives encompass both pilot programs and resource assessment projects designed to evaluate the feasibility and potential of geothermal energy within the nation.
One notable project involves the sanctioning of a 450 kW geothermal energy initiative utilizing decommissioned oil wells in Rajasthan, previously operated by Vedanta.
To stimulate investment and adoption in the geothermal sector, the government is also considering financial measures like viability gap funding, Sarangi added.

Geothermal energy exploits the heat preserved within the Earth’s crust, primarily harnessing high-enthalpy resources found in volcanic regions, geysers, and hot springs for electricity generation.
According to the policy framework, while solar, wind, bioenergy, and hydropower currently dominate renewable energy capacity, geothermal energy could serve as a significant supplemental resource.
The policy’s objective is to enhance research capabilities related to geothermal energy development, facilitate advanced geothermal exploration, improve drilling methodologies, manage geothermal reservoirs, and promote cost-effective power generation and direct-use technologies.
It also aims to collaborate with various ministries, international geothermal development organizations, and national research institutions to integrate global best practices in exploration, resource assessment, and technology deployment.
Moreover, the initiative seeks to promote advanced geothermal exploration through collaboration with the oil and gas industry, involving deep and multilateral drilling practices and repurposing abandoned wells for large-scale power generation across India.
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