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					</table>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has issued the National Policy on Geothermal Energy to advance research, exploration, drilling techniques, reservoir management, and cost-effective power generation, along with wider adoption of direct-use technologies.
Geothermal projects will receive the same support mechanisms as other renewable energy sources under the policy, including interstate grid access, interstate transmission system, and open access charge waivers, as well as must-run status, renewable purchase obligation eligibility, and participation in the Indian Carbon Credit Trading Program.
The policy seeks to establish geothermal energy as one of the pillars of India’s renewable energy landscape, contributing significantly to national climate commitments and the 2070 Net Zero Goal.
It promotes collaboration with other ministries, international geothermal bodies, and national research institutes to integrate global best practices in exploration, resource assessment, and technology deployment.
It emphasizes deploying geothermal heating and cooling solutions, including ground source heat pumps (GSHPs), to decarbonize buildings, agriculture, and industries.
The policy facilitates advanced exploration through coordination with the oil and gas sector, including deep and multilateral drilling, as well as repurposing abandoned wells for large-scale power generation.
Policy Implementation
MNRE will act as the nodal body for implementing geothermal energy projects. Key mechanisms include technology collaboration with pioneering countries and international organizations, partnerships with donor agencies and development finance institutions for concessional finance, and R&amp;D under the Renewable Energy Research and Technology Development Program for resource assessment, pilot projects, and future national programs with financial support.
Soft loans may be provided through IREDA and other institutions, while centres of excellence will be established for technical support, capacity building, and industry-driven innovation.
MNRE will also issue guidelines, release periodic progress reports on milestones such as resource assessments and pilot projects, and ensure streamlined policy updates.
Potential Geothermal Sites  
Since 1973, the Geological Survey of India (GSI) has identified 381 hot springs with surface temperatures between 35°C and 89°C. While Himalayan regions can reach reservoir temperatures of about 200°C, most of India lies in a medium-to-low enthalpy zone (100°C–180°C), making it well-suited for direct applications such as ground source heat pumps (GSHPs), building heating and cooling, greenhouse heating, and cold storage.
GSI has identified several geothermal energy sites across the country. In Ladakh, sites at Puga, Chumathang, Gaik, Demchok, Nubra (Panamik), and Galhar have been identified. In Jammu &amp; Kashmir, Sidhu has been identified, while in Himachal Pradesh, the sites are Manikaran, Kasol, Tattapani, and Tapri. In Uttarakhand,  Tapoban, Gari, Joshimath, Juma, Jamunotri, Ganganani, Beda, Joti, Nyu, Dar, and Bheti are identified as potential geothermal sites.
In Arunachal Pradesh, Tsachu (Tawang) and Takshing, and Polok and Yumesamdong have been identified in Sikkim. Other locations are Sohna (Haryana), Bhimband in Munger (Bihar), Surajkund and Tantloi (Jharkhand), Bakreshwar (West Bengal), Tattapani (Chhattisgarh), Anhoni (Madhya Pradesh), Dholera, Tuwa, and Tulsishyam (Gujarat), Deulajhari (Athmallik) and Attri (Odisha), Unhavare (Khed), Sativali, and Tural (Maharashtra), and Manuguru (Telangana).
MNRE will establish a geothermal data repository in collaboration with national agencies, international partners, and the oil and gas industry, encompassing well data, drilling expertise, mineral identification, equipment sharing, and geophysical surveys. The Directorate General of Hydrocarbons (DGH) data repository may be accessed under National Data Repository guidelines, with operators required to submit acquired data.
Developers must also conduct detailed resource and feasibility studies to guide projects in power generation, heating/cooling, geo-tourism, greenhouse heating, and horticulture processing.
Scope of Geothermal Energy Systems
The policy covers geothermal resource assessment through surveys and exploratory drilling aligned with international norms; regulated drilling for shallow and deep exploitation; and power production via dry steam, flash steam, binary cycle, organic rankine cycle, and modular plants, including Enhanced Geothermal Systems (EGS).
Direct uses include cold storage, food processing, greenhouse heating, aquaculture, drying, tourism, and geothermal parks. GSHPs can provide nationwide heating and cooling using the earth’s stable temperature.
Emerging technologies, including EGS, advanced geothermal systems, hybrid solar-geothermal plants, closed-loop systems, geothermal storage, offshore wells, and deep direct-use applications, are also included.
The framework enables the repurposing of abandoned oil and gas wells for geothermal projects. It recognizes mineral by-products, such as silica, borax, and lithium, as potential value additions, subject to concessions and royalties.
Developmental Model 
The developmental model for geothermal projects covers phases from surface exploration and drilling to feasibility studies, design, construction, commissioning, monitoring, and operation. With 100% foreign direct investment permitted in renewables, the policy prioritizes indigenous technologies to reduce import dependence, encouraging local innovation in drilling, monitoring, and reservoir management.
Safe, non-polluting use of geothermal fluids with reinjection is emphasized, along with funding preference for the northeastern region and special category states.
The government will explore risk-sharing mechanisms with developers and promote the conversion of abandoned oil and gas wells into geothermal plants in collaboration with the Ministry of Petroleum and Natural Gas (MoPNG), DGH, and oil companies.
Equipment approved under Essentiality Certificates for oil and gas may be used in geothermal projects, and diverse economic models such as revenue sharing and milestone-based payments will be considered.
Joint ventures between oil and gas companies, mineral companies, and geothermal developers can combine expertise and financial resources, enabling the funding and development of large-scale geothermal power plants and projects.
Where feasible, oil and gas production facilities, such as pipelines, power generation systems, and processing plants, can be repurposed for geothermal energy, minimizing the need for significant capital investments in new infrastructure.
Financing Mechanisms
The government may adopt various measures to enhance the viability and bankability of geothermal projects, including support for research, resource assessment, and pilot demonstrations under MNRE’s Renewable Energy Research and Technology Development Program.
It also encourages FDI and funding from donor agencies, multilateral and bilateral entities, and philanthropic organizations through grants or loans.
Potential financing mechanisms include long-term concessional loans, sovereign green bonds, viability gap funding, risk-mitigation loans or grants, and feed-in tariffs.
Regulations
Geothermal projects will receive the same support mechanisms as other renewable energy sources. GSHPs and district heating/cooling systems may be promoted under the National Building Code.
MNRE, in coordination with the Ministry of Environment, Forest and Climate Change, may also develop environmental and social impact assessment guidelines for geothermal projects, drawing on international best practices.
Guidelines for States 
Project developers may approach State Governments for allocation of geothermal zones or sites, with permits and land leases issued at the state level. In areas overlapping with oilfields, proposals will be evaluated for technical and operational feasibility, and if compatible, coordinated with MoPNG for approval. Exploration may also proceed in areas with existing prospecting licenses upon Ministry recommendation.
To expedite projects, a streamlined single-window system will be set up through designated state nodal agencies to manage permissions, clearances, monitoring, and implementation, including land, water, forest, and environment approvals. Developers must comply with state regulations and conduct stakeholder consultations with compensatory measures in sensitive areas.
States may allocate sites for exploration for a period of three years (extendable by up to two years, or longer in high-altitude regions) and for development for up to 30 years, with possible extensions. To encourage deployment, governments may provide concessional land allotments, while defense clearance, if required, will be handled case-by-case. All procedures will be streamlined through portals to enable concurrent and faster clearances.
A recent report by the International Energy Agency noted that India is <a href="https://www.mercomindia.com/geothermal-energy-could-meet-15-of-global-power-demand-by-2050-iea/" target="_blank" rel="noopener">expected</a> to be the third-largest market for next-generation geothermal power capacity by 2050.
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Government Unveils Geothermal Energy Policy to Harness Earth’s Heat

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					</table>The U.S. Geological Survey (<a href="https://www.usgs.gov/" target="_blank" rel="noopener">USGS</a>) has indicated that geothermal energy in Nevada’s Great Basin and adjoining areas could potentially supply electricity equivalent to one-tenth of the current U.S. power demand.
This represents a significant increase from current levels, as geothermal energy currently contributes less than 1% to the national power grid. The report updates a previous assessment from 2008 and emphasizes the role of enhanced geothermal systems (EGS) in unlocking this potential.
The study covers the arid lands of the Great Basin, including parts of California, Oregon, Idaho, Wyoming, and Utah. The projected 10% contribution to national electricity needs hinges on widespread commercial-scale development and ongoing technological advancements, particularly those developed in the geothermal and oil and gas sectors over the past few decades.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Geothermal-article-image-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-80061 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Geothermal-article-image-1.png" alt="US Geothermal Energy" width="524" height="500" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Geothermal-article-image-1.png 524w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/05/US-Geothermal-article-image-1-300x286.png 300w" sizes="auto, (max-width: 524px) 100vw, 524px" /></a>
According to the USGS, most existing geothermal electricity generation relies on hydrothermal systems where groundwater naturally circulates through heated, permeable rock. However, the bulk of geothermal potential lies in areas where heat is trapped in impermeable rock. In such cases, EGS is required.
These systems involve engineering open fractures into impermeable rock as deep as 3.7 miles (6 kilometers) below the Earth’s surface, allowing water to circulate and extract heat for electricity generation.
The new assessment incorporates technological developments in mapping and subsurface surveys, including the use of artificial intelligence and machine learning. New heat flow and underground temperature maps were created, along with methods to estimate energy extraction efficiency and the conversion of heat into electricity.
The USGS assessment of undiscovered geothermal resources reflects future potential and areas that have not yet been fully explored or developed.
Sarah Ryker, acting USGS director, stated that the Great Basin was selected due to its known history of geothermal activity and that current findings indicate even greater potential for baseload power than previously understood.
“Leveraging this work along with artificial intelligence and machine learning techniques will help us assess the entire nation’s potential for geothermal energy with greater speed and accuracy,” she said.
The USGS also highlighted the dual benefit of modern mapping techniques, which now support the identification of geothermal energy, critical minerals, and, in some cases, groundwater. While the geothermal heat in the Great Basin has been confirmed, realizing its full potential depends on further improvements in engineering efficiency and the commercial deployment of enhanced geothermal technologies.
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If enhanced geothermal systems (EGS) technology advances as projected, the potential for power generation from these systems significantly increases with depth, as deeper rock formations tend to be hotter.
While depths exceeding 6 km might necessitate further technological breakthroughs, the current provisional estimate for the Great Basin, spanning 633,072 sq km, suggests a total EGS power production capacity of 135 GW.
This figure represents only 0.5% of the accessible electric-grade resource, indicating that 99.5% of the thermal energy remains as residual.
Notably, thermal resources from active hydrothermal systems, which account for less than 1% of the total rock volume, are not factored into this estimate. This new assessment aligns with the 518 GW estimated in the 2008 geothermal assessment for the upper 6 km of the larger western U.S., with Nevada and Utah alone contributing an estimated 150 GW.
While it is improbable to achieve the most extreme production efficiencies, these values establish a spectrum for the resource, ranging from negligible (if suitable geological conditions are scarce) to an impressive 44% of the resource base becoming useful. This upper bound could result in an astounding 13 TW of power, roughly ten times the current U.S. power generation capacity.
Earlier this year, the U.S. Department of the Treasury and the Internal Revenue Service <a href="https://www.mercomindia.com/final-rules-for-tax-credits-to-spur-clean-energy-investments-in-us" target="_blank" rel="noopener">released</a> final rules for the clean electricity investment and production tax credits (technology-neutral credits). The final rules clarify which clean electricity zero-emission technologies qualify for the credits. These include wind, solar, hydropower, marine and hydrokinetic, geothermal, nuclear, and specific waste energy recovery technologies.

Enhanced Geothermal Systems Could Meet 10% of US Power Demand: USGS

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					</table><a href="https://baseloadcap.com/" target="_blank" rel="noopener">Baseload Capital</a>, a Swedish climate investment fund, has raised $24 million to invest in geothermal energy.
With a credit facility of $25 million secured from London-based Sustainable Development Capital in the spring, Baseload Capital has raised over $45 million.
The credit facilitates flexible financing for commissioning new geothermal power plants, while the new convertible loan will be directed for Baseload Capital&#8217;s continued expansion and to redeem the company&#8217;s green bond.
<a href="https://breakthroughenergy.org/our-work/breakthrough-energy-ventures/" target="_blank" rel="noopener">Breakthrough Energy Ventures</a>, founded by Bill Gates and which invests in technologies needed to achieve net-zero emissions by 2050, is one of the prominent investors in the round.
Gullspång Invest, and Chevron Technology Ventures, the venture arm of global oil conglomerate Chevron, are the existing investors in Baseload Capital&#8217;s financing round. Baker Hughes, a global energy technology company, is also a prominent investor.
Unlike other forms of clean energy, geothermal energy functions independently of weather fluctuations.
Baseload Capital works closely with local affiliates in Sweden to finance, plan, and build facilities to extract geothermal energy, the heat stored underneath the earth&#8217;s interior.
Baseload Capital&#8217;s CEO Alexander Hilling said, &#8220;The earth&#8217;s heat can deliver renewable energy 24 hours a day, 365 days a year. So, it is no wonder more and more large investors see the potential in what we do. We are happy that our partners are supporting us as we continue our fast-paced growth.&#8221;
In May, Baseload <a href="https://mercomindia.com/daily-news-wrap-up-sjvn-signs-ppa-solar-bihar/" target="_blank" rel="noopener">signed</a> a €25 million (~$26.87 million) convertible term facility agreement with SDCL Energy Efficiency Income Trust. The facility will be used to refinance the company&#8217;s operational assets and assets in construction or late-stage development and finance future pipeline projects.
Also in May, Baseload <a href="https://mercomindia.com/daily-news-wrap-up-tata-motors-2/" target="_blank" rel="noopener">began</a> operating its fourth geothermal project power in Japan to produce 350 MWh of power annually.
Geothermal energy is heat derived within the sub-surface of the earth. Water or steam brings this energy to the surface of the earth. Geothermal energy can be used for heating and cooling purposes or harnessed to generate electricity. Geothermal power projects can supply baseload electricity and ancillary services for short and long-term in some cases.
According to the International Renewable Energy Agency (IRENA), in 2021, 1.6 GW of geothermal capacity was added globally.

Baseload Capital Raises $24 Million to Bolster Geothermal Energy

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