When India’s clean energy transition is discussed, the conversation often begins and ends with solar and wind. Over the past decade, these two sources have become synonymous with renewable power in the public imagination. That focus has delivered impressive results: non-fossil sources now account for nearly half of India’s installed electricity capacity, achieved five years ahead of the Paris Agreement pledge for 2030. Yet, as India’s demand for electricity surges, it is increasingly clear that solar and wind alone cannot carry the weight of future growth. The time has come to expand the scope of our energy imagination and bring geothermal energy into the mainstream.
Geothermal energy harnesses heat stored deep within the Earth’s crust. Unlike solar and wind, it is not dependent on weather patterns or time of day. It provides stable, round-the-clock power with utilisation factors above 80 per cent, making it one of the most reliable sources of renewable energy available.
Globally, the United States, Indonesia and the Philippines lead in geothermal deployment, accounting for most of the 15.4 gigawatts installed capacity. India, by contrast, has only dabbled on the margins, despite being endowed with rich resources. The Geological Survey of India has identified more than 380 hot springs and ten major geothermal provinces spread across Ladakh, the Himalayas, the western coast and the Andamans. For decades these regions were seen as curiosities, with occasional pilot studies but little serious policy push. That picture is finally changing.
On 15th September, the Ministry of New and Renewable Energy notified the first-ever National Policy on Geothermal Energy, signalling that India intends to make this resource a formal part of its clean energy portfolio. The policy is not merely about power plants. It emphasises direct-use technologies such as ground source heat pumps for buildings, district heating systems, greenhouse farming, aquaculture and even tourism potential around hot springs. It encourages the extraction of minerals such as lithium and silica from geothermal fluids, offering India a chance to strengthen its clean-tech supply chains. And it proposes hybrid systems where geothermal energy could be paired with solar projects to enhance efficiency and reliability.
The policy is significant because it addresses one of the biggest barriers to geothermal expansion—its high upfront exploration costs. Unlike solar panels or wind turbines, geothermal requires deep drilling to confirm the presence of reservoirs, a process that is both expensive and uncertain. By offering fiscal incentives including tax holidays, GST exemptions, viability gap funding and sovereign green bonds, the policy recognises that investors will only step in if risks are shared.
It also opens the door for collaboration with the oil and gas sector. India has thousands of abandoned wells which could be repurposed for geothermal development. Oil companies already possess expertise in drilling and subsurface management, making them natural partners in this effort.
State governments have been assigned a central role as well. They can identify geothermal zones, streamline clearances and lease land at concessional rates. In return, they stand to gain reliable power for remote regions, new revenue opportunities and local jobs. Well-known sites such as Puga and Chumathang in Ladakh, Manikaran in Himachal Pradesh and Tattapani in Chhattisgarh could become the first to move from long-standing pilot projects to commercial deployment under this new policy framework.
The potential is vast, but so are the challenges. Exploration remains expensive, and success is uncertain until drilling is completed. India also lacks domestic expertise in advanced reservoir management, which will require international partnerships. Many geothermal sites are located in ecologically fragile areas, demanding careful environmental safeguards. And perhaps the most difficult obstacle is financing. Investors need confidence that geothermal can deliver steady returns, which means mechanisms like feed-in tariffs, concessional loans and carbon credits must be brought into play.
Globally, there are important lessons for India. Indonesia plans to triple its geothermal capacity by 2035, and the United States is investing heavily in next-generation enhanced geothermal systems to unlock heat from non-volcanic regions. Kenya demonstrates that geothermal can supply nearly half of a developing country’s electricity, proving that it is not just a technology for the wealthy. The message is clear: countries that persisted through the early phase of high costs are now reaping the rewards of stable, clean and abundant energy.
What makes geothermal especially compelling for India is that it can serve as a baseload anchor to complement solar and wind. As the share of variable renewables increases, the strain on grid management is becoming evident. Storage technologies such as batteries and pumped hydro are essential, but they remain capital intensive.
Geothermal offers an alternative—a constant stream of clean electricity that reduces dependence on coal during peak hours and enhances the resilience of the grid. Beyond power, direct applications of geothermal energy could transform rural economies. Cold storage for farmers in Bihar or greenhouse farming in Himachal powered by geothermal heat could cut post-harvest losses, improve productivity and boost incomes. Wellness and tourism centred on hot springs could create entirely new industries in remote regions.
The new policy also aligns with India’s broader energy diplomacy. By building domestic expertise and technology, India can position itself as a hub for geothermal services in South Asia, extending support to neighbours such as Nepal and Bhutan that share similar geological profiles. In doing so, India would not only advance its clean energy agenda but also strengthen its role as a regional leader in sustainable development.
For too long, India’s clean energy narrative has been framed as a binary choice between coal and renewables, and within renewables, a race between solar and wind. The geothermal policy marks a quiet but important departure. It reflects a more mature understanding that the transition to net zero requires a diversified energy ecosystem, one that integrates multiple technologies to provide reliability, affordability and sustainability.
The heat beneath our feet has always been there, waiting to be tapped. With the right mix of policy support, technological innovation and financial instruments, India can now bring this silent source of energy into the light. The transition beyond renewables is no longer about solar and wind alone. It is about building an integrated, diversified and resilient energy system. And it begins with geothermal.