National Policy on Geothermal Energy (NPGE, 2025) ( UPSC Prelims)

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News Context

The Union Ministry of New & Renewable Energy (MNRE) has announced India's inaugural National Policy on Green Energy (NPGE), 2025.

About Geothermal Energy

     ○ It utilizes heat stored within the Earth's crust.
  ● Key Sources and applications:  
    ● High-enthalpy (~200°C) resources: Found in volcanic regions, geysers, and hot springs, suitable for electricity generation.  
    ● Low- to medium-enthalpy (100–180°C) resources: Found in hot rocks and shallow ground layers, suitable for direct-use applications like heating and cooling, agri-food, aquaculture, etc.  
  ● Estimated Potential in India: 10,600 MW (Geothermal Atlas of India, 2022)  
    ● GSI identified 381 hot springs and 10 geothermal provinces (see infographic)  
    ● Puga and Chumathang in Ladakh are the most promising.  
  ● Significance: 95% lower emissions than fossil fuels, inexhaustible energy source, etc.  

About National Policy on Geothermal Energy (NPGE, 2025)

Vision: To position geothermal energy as a key component of India’s renewable energy portfolio, with the goal of reaching net zero carbon emissions by 2070.
 Nodal Ministry: MNRE

Key features of the Policy

Scope of policy:
  ● Geothermal Resource Assessment, Direct use, Ground (geothermal) Source Heat Pump (GSHP), etc.  
      ○ Emerging Innovative Technologies like Enhanced Geothermal Systems (EGS), Advanced Geothermal Systems (AGS), geothermal energy storage, etc.
      ○ Extracting geothermal energy (GE) from abandoned oil and gas wells.
  ● Mineral by-products such as silica, borax, cesium, lithium, etc., subject to rules and royalty payments under the MMDR Act.  
 Creation of a geothermal resource data repository
 Developmental Model
      ○ Preference for indigenous geothermal technologies
  ● Economic feasibility models: such as revenue sharing, etc.  
  ● Central funding assistance: To the Northeastern Region and special category states.  
  ● Joint ventures: Between oil and gas companies, mineral companies, etc.  
 Financing Mechanisms
  ● Renewable Energy Research and Technology Development Programme (RE-RTD) offers up to 100% financial support to Government/non-profit research organizations and up to 70% to Industry, start-ups, private institutes, entrepreneurs, and manufacturing units  
 Fiscal incentives: GST/Import duty exemptions on equipment, services, etc.
 Support mechanisms: Inclusion in the Indian Carbon Credit Trading Scheme; eligibility for Renewable Purchase Obligation (RPO), etc.
 Guidelines for States and Union Territories
      ○ For granting geothermal exploration/development permits and land leases
    ● Exploration leases may be granted for 3 to 5 years.  
    ● Lease for development for power generation or direct-use applications for up to 30 years.  

Other recent Steps taken to promote Geothermal energy

     ○ The Geological Survey of India (GSI) released the 'Geothermal Atlas of India, 2022'.
      ○ The Renewable Energy Research and Technology Development Programme (RE-RTD) is managed by MNRE.
  ● Singareni Collieries Company Limited (SCCL) launched a 20 kW pilot geothermal power plant in the Manuguru area of Bhadradri Kothagudem district in Telangana.  
      ○ The Northeast's first geothermal well was established at Dirang, Arunachal Pradesh in collaboration with Norway and Iceland.
      ○ The Uttarakhand Cabinet has sanctioned the Uttarakhand Geo-Thermal Energy Policy 2025.