Geothermal energy could unlock 450 GW electricity potential in India: report
A joint report by Project InnerSpace and the Council on Energy, Environment and Water (CEEW), titled "The Future of Geothermal in India," identifies India's ...
What Happened
- A joint report by Project InnerSpace and the Council on Energy, Environment and Water (CEEW), titled "The Future of Geothermal in India," identifies India's technical geothermal potential at 450 GW of electricity generation, over 1,500 GW of cooling, and 11,000 GW of industrial heat.
- The 450 GW electricity figure is roughly equivalent to India's entire current installed power generation capacity from all sources combined, while total global installed geothermal capacity stands at approximately 16 GW.
- Large-scale development could create between 3.5 lakh and 7 lakh jobs and support India's clean energy transition, particularly by providing firm, baseload power unlike intermittent solar and wind.
- The report notes that advances in enhanced geothermal systems (EGS), improved subsurface drilling technologies, and better geological data now make large-scale deployment significantly more viable than previously assessed.
- India's recent National Policy on Geothermal Energy (2025) provides the first dedicated policy framework, enabling exploration leases and offering fiscal incentives that together create an enabling environment for commercial deployment.
Static Topic Bridges
National Policy on Geothermal Energy, 2025
India's Ministry of New and Renewable Energy (MNRE) issued the National Policy on Geothermal Energy on September 15, 2025 — the country's first dedicated geothermal policy. The policy establishes a framework for exploration and development leases, with state governments allocating geothermal sites for an initial three-year exploration period (extendable by two more years). Development leases for power generation run up to 30 years.
- Nodal Ministry: Ministry of New and Renewable Energy (MNRE)
- Fiscal incentives: GST and import duty exemptions, tax holidays, accelerated depreciation, and viability gap funding
- Mandates a geothermal data repository in collaboration with Ministry of Mines, Ministry of Earth Sciences, Geological Survey of India (GSI), and Central Ground Water Board
- 100% FDI permitted in the renewable energy sector, including geothermal
- MNRE required to establish a single-window clearance system for geothermal projects
Connection to this news: The CEEW-InnerSpace report directly builds on the policy's enabling framework, providing the first comprehensive technical assessment of commercially exploitable geothermal potential that the 2025 policy was designed to unlock.
India's Renewable Energy Targets and the Role of Firm Power
India has a target of achieving 500 GW of non-fossil fuel-based electricity capacity by 2030, as part of its Nationally Determined Contributions (NDCs) under the Paris Agreement. While solar and wind dominate the expansion, they are intermittent — geothermal is a baseload source, generating power continuously regardless of weather or time of day.
- India's installed renewable energy capacity (excluding large hydro): approximately 200 GW as of early 2026
- Solar and wind collectively account for the bulk of renewable additions but require grid-balancing solutions
- Geothermal energy operates at high capacity factors (85–95%) compared to solar (~20–25%) and wind (~30–35%)
- Enhanced Geothermal Systems (EGS) can unlock resources in regions without natural hydrothermal activity, expanding the geographic scope far beyond traditional volcanic zones
Connection to this news: The 450 GW electricity potential figure, if even partially realised, would substantially de-risk India's grid by adding firm renewable capacity, complementing the intermittent solar and wind dominance.
Council on Energy, Environment and Water (CEEW)
CEEW is an independent, not-for-profit policy research institution based in New Delhi, recognised as one of Asia's leading think tanks on energy and environment issues. It has played a significant role in shaping India's clean energy policies through rigorous data-driven research.
- CEEW is not a government body; it functions as an independent research institution
- Has previously published landmark studies on India's solar potential, air pollution, and climate vulnerability
- Project InnerSpace is a US-based non-profit focused on accelerating geothermal energy globally
Connection to this news: The collaborative authorship of this report — a global geothermal advocacy organisation paired with India's leading energy think tank — lends credibility to the 450 GW estimate and signals international interest in India's geothermal development.
Key Facts & Data
- India's assessed geothermal electricity potential: 450 GW
- India's assessed geothermal industrial heat potential: 11,000 GW
- India's assessed geothermal cooling potential: 1,500 GW
- Total global installed geothermal power capacity: approximately 16 GW
- Job creation potential from geothermal development: 3.5 lakh to 7 lakh
- India's 2030 non-fossil electricity target: 500 GW
- National Policy on Geothermal Energy issued by: MNRE, September 15, 2025
- Exploration lease period under the 2025 policy: 3 years (extendable by 2 more)
- Development lease period: up to 30 years
- Key geothermal provinces in India: Puga (Ladakh), Tattapani (Chhattisgarh), Parvati Valley (Himachal Pradesh), Cambay (Gujarat), Son-Narmada-Tapi (central India)