India’s clean energy transition has so far been defined by solar panels on rooftops, wind farms along coastlines and a steadily expanding nuclear programme. Beneath this visible shift, however, a less explored resource is beginning to draw attention from researchers and policymakers. Geothermal energy, long treated as marginal, is now being reconsidered as a potential pillar of India’s future energy system.
A joint assessment by the Center for Study of Science, Technology and Policy (CSTEP), the Council on Energy, Environment and Water (CEEW) and Project InnerSpace estimates that India could hold more than 11,000 gigawatts of direct-use geothermal potential for industrial heat, around 1,500 gigawatts for cooling applications, and roughly 450 gigawatts for electricity generation under current technology limits. With advances in drilling and subsurface engineering, electricity potential could rise beyond 8,000 gigawatts in deeper formations.
These resources are distributed across regions from the Himalayas to the Deccan Traps, indicating a geographically broad opportunity rather than isolated deposits. Yet despite the identification of 381 geothermal fields by the Geological Survey of India, deployment remains limited to pilots and early-stage demonstrations.
Industrial Heat, Cooling Focus
The report’s central argument is that geothermal energy’s most immediate value for India lies not in electricity, but in direct heat applications.
Industry accounts for nearly 40 per cent of national energy use, while households contribute close to a quarter, much of it linked to rising cooling demand. Against this backdrop, geothermal offers an efficiency pathway that is already technically viable.
Ground source heat pump systems can reduce cooling electricity consumption by 30 to 40 per cent by using stable underground temperatures of 20°C to 30°C at shallow depths. In cities such as Delhi, Ahmedabad, Hyderabad and Chennai, this could help ease peak power demand, which is rising at 8 to 10 per cent annually in some regions.
Beyond individual buildings, the report highlights geothermal district cooling systems for sediment-rich basins and aquifer zones, estimating up to 610 gigawatts of cooling potential in high heat-risk regions and around 1,500 gigawatts nationally. In industry, geothermal heat in the 60°C to 200°C range can substitute fossil fuels in textiles, chemicals, food processing and pharmaceuticals. Agricultural uses such as cold storage, drying and greenhouse heating further expand its practical scope.
While geothermal electricity generation is technically feasible, the report notes that its deployment in India is likely to remain geographically restricted. The Puga Valley in Ladakh, with reservoir temperatures of 220°C to 270°C, is among the most promising sites. Other potential zones include parts of Gujarat, Maharashtra, Chhattisgarh, Himachal Pradesh and the Northeast.
However, the assessment is clear that direct-use applications should take priority, given faster deployment timelines and wider geographic applicability.
Policy Gap And Investment Challenge
India’s National Policy on Geothermal Energy provides a framework for exploration, but execution remains limited. The report calls for a national geothermal mission targeting 10 GW of cooling, 50 GW of industrial heat and 10 GW of electricity by 2050.
Cost remains the central barrier. Exploration and drilling alone account for 40 to 60 per cent of total project costs, making geothermal significantly riskier than solar or wind at early stages. To address this, the report recommends clearer permitting systems, financial de-risking and stronger early-stage market creation.
Speaking on the cost challenge and learning curve, Drew Nelson, Vice President, Programs, Policy & Strategy at Project InnerSpace, said India’s solar experience offers a relevant parallel. “India now has the opportunity to do the same for geothermal,” he said, referring to the cost reductions achieved in solar through scale and iteration. He added that geothermal’s value is not fully captured in conventional pricing models, pointing to benefits such as energy security, reduced import dependence and grid stability.
Jobs, Emissions And Energy Security
A scaled geothermal sector could generate between 350,000 and 700,000 jobs across drilling, engineering, construction and operations, with strong overlap from India’s oil and gas workforce.
On emissions, geothermal systems can reduce carbon dioxide output by up to 99 per cent compared with coal, along with sharp reductions in particulate and sulphur pollution. They also require less land and water than most energy systems. From an energy security standpoint, geothermal offers round-the-clock reliability and reduces dependence on imported fuels, making it suitable for industrial clusters and data centres.
Nelson said the next phase must focus on demonstration projects. “In the next five years, I would like to see India moving forward with cooling and industrial heat pilot projects that prove viability,” he said. He also flagged policy uncertainty as a key constraint. “The main challenges are policy and political will,” he noted.
A Wider Energy Transition
The geothermal story sits within a broader restructuring of India’s energy system, where multiple low-carbon pathways are advancing simultaneously. A recent US-India Business Council and KPMG report outlines a plan to scale nuclear capacity to 100 GW by 2047, supported by reforms such as the Shanti Act, 2025 and a proposed Rs 20,000 crore National Nuclear Energy Mission focused on small modular reactors.
The report positions nuclear energy as a stable, low-carbon source for baseload electricity, industrial heat and hydrogen production, complementing intermittent renewable sources.
At the same time, India’s broader clean energy ambition remains anchored in its 500 GW non-fossil fuel target by 2030, covering solar, wind, hydro, nuclear and other clean sources. Within this evolving mix, technologies such as waste-to-energy, biomass conversion and hydrogen from waste streams are gaining attention as supplementary pathways.
Sunil Rajan, CEO of WOG Technologies, earlier told BW Businessworld that renewable energy discourse remains heavily focused on solar and wind, while waste-based systems receive limited attention. He pointed to India’s large volumes of agricultural, biomass and industrial waste as an underused energy resource. Technologies such as green coal, biochar and bio-oil, he said, could reduce emissions while cutting dependence on imported fuels. He also highlighted waste-to-hydrogen and water-to-hydrogen pathways, adding that hydrogen derived from sludge and wastewater could emerge as a meaningful alternative fuel.
Across these parallel energy narratives, geothermal remains at an early stage. The report’s central conclusion is not resource scarcity, but execution delay. With targeted policy support, early pilots and risk-sharing mechanisms, geothermal could shift from scattered demonstrations to a structured component of India’s net-zero pathway by 2070, particularly in sectors where electrification alone is insufficient.
For now, the resource remains largely untapped, waiting for the policy clarity, capital and technical scale needed to bring it into mainstream use. |
