Government of India Announces National Geothermal Energy Policy 2025 to Drive Clean Energy Transition and Support Net Zero Goals

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The Government of India has formally notified the National Policy on Geothermal Energy (2025), marking a significant step in the country’s renewable energy strategy. The policy underscores India’s commitment to achieving Net Zero emissions by 2070 while enhancing long-term energy security through diversification of clean energy sources.

India has vast untapped geothermal reserves that can be harnessed for power generation as well as direct-use applications such as district heating, agriculture, aquaculture, desalination, and space heating and cooling through Ground Source Heat Pumps (GSHPs). The policy sets out a clear framework to guide exploration, development, and utilization of this resource in a structured and sustainable manner.

The policy places strong emphasis on advancing research, innovation, and global best practices in geothermal energy. With the Ministry serving as the nodal authority, regulatory oversight and stewardship will ensure that exploration and development are carried out responsibly while keeping pace with global standards.

A core objective of the policy is the integration of geothermal energy into India’s broader clean energy roadmap. By aligning with the country’s renewable energy targets and the Net Zero 2070 commitment, geothermal initiatives will complement existing solar, wind, and hydro power projects while diversifying India’s clean energy portfolio.

The framework also highlights the diverse applications of geothermal resources, extending beyond electricity generation to agriculture, tourism, district heating and cooling, aquaculture, and industrial operations. In parallel, it promotes technological innovation, including hybrid geothermal-solar systems, Enhanced and Advanced Geothermal Systems (EGS/AGS), and the reuse of abandoned oil and gas wells for energy production.

To accelerate sectoral growth, the policy encourages collaborations with state governments, international partners, oil and gas companies, and research institutions. It also calls for the creation of a strong public-private ecosystem supported by capacity building, knowledge sharing, and human resource development, laying the foundation for long-term sustainability of India’s geothermal sector.

As part of its initial rollout, the Ministry of New and Renewable Energy (MNRE) has sanctioned five geothermal projects, comprising both pilot demonstrations and resource assessment initiatives. These projects are intended to evaluate the viability and potential of geothermal resources across different regions of the country.

MNRE will oversee the progress of these initiatives while ensuring a supportive environment for developers, industries, and research organizations. The new policy is expected to lay the foundation for a strong geothermal sector in India, complementing other renewable energy sources and contributing significantly to the nation’s clean energy transition.