India’s first geothermal energy project will be developed in the high-altitude Puga Valley region of Ladakh

India is set to take a major step towards clean and sustainable energy by developing the country’s first geothermal energy project in the high-altitude Puga Valley region of Ladakh. The project is expected to strengthen India’s energy security while supporting efforts to reduce carbon emissions and promote renewable energy sources.

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¨     The Lieutenant Governor of Ladakh, Vinai Kumar Saxena, has approved a five-year extension of the Memorandum of Understanding (MoU) with the Oil and Natural Gas Corporation (ONGC) to develop India's first geothermal energy project in the Puga Valley of Ladakh, situated at an altitude of over 14,000 feet.

¨     Under this agreement, the ONGC Energy Centre will establish a 1 Megawatt Electric (MWe) pilot geothermal energy plant in the Puga Valley of Ladakh, located at an altitude exceeding 14,000 feet.

¨     ONGC will drill up to 1,000 meters into an existing geothermal well and, in the subsequent phase, will drill an additional geothermal well.

¨     The testing and commissioning of this pilot plant are estimated to take place during the financial year 2026-27.

¨     The objective of this project is to lay the groundwork for the large-scale commercial harnessing of geothermal energy in Ladakh—specifically in the Puga and Chumathang regions of the Himalayan geothermal belt.

Geothermal Energy

¨     Geothermal energy is thermal energy (heat) derived from beneath the Earth's crust ("Geo" = Earth, "Thermal" = Heat).

¨     This heat originates from the Earth's core and naturally warms underground rocks and water reservoirs.

¨     Wells are drilled into underground geothermal reservoirs to extract steam and hot water for electricity generation and direct heating applications.

Key Applications

¨     Electricity Generation: Steam generated from underground heat drives turbines to produce electricity.

¨     Heating and Cooling: Geothermal heat pumps are utilized for space heating, cooling, and district heating systems.

¨     Direct-Use Applications: These include greenhouse heating, aquaculture, food drying, tourism, industrial heating, and cold storage facilities.

Sources of Geothermal Energy

¨     High-temperature geothermal resources are typically found in volcanically and tectonically active regions, where hot springs, geysers, and underground steam reservoirs exist.

¨     Based on the temperature of the underground reservoir, geothermal systems are generally classified into high, medium, and low enthalpy systems.

¨     In India, geothermal potential is primarily concentrated in the Himalayan Geothermal Belt, the Cambay Graben, the SONATA region, the West Coast, and the Andaman and Nicobar Islands.

Potential in India

¨     India's estimated geothermal potential is approximately 10,600 megawatts (MW); within this scope, the Geological Survey of India (GSI) has identified 381 hot springs and 42 potential geothermal sites for power generation and direct-use applications.

¨     The GSI has identified 10 geothermal provinces in India: the Himalayan Geothermal Province, Naga-Lushai, Andaman and Nicobar Islands, Son-Narmada-Tapi (SONATA), West Coast, Cambay Graben, Aravalli, Mahanadi, Godavari, and the South Indian Cratonic Province.

¨     The International Energy Agency (IEA) estimates that India's geothermal market potential will reach 4.2 gigawatts by 2035 and approximately 100 gigawatts by 2045.

¨     Globally, less than 17 gigawatts of geothermal capacity is currently operational, with the United States, Indonesia, and the Philippines leading the way. •      The National Geothermal Energy Policy (2025) aims to establish geothermal energy as a key pillar of India’s renewable energy transition, while supporting energy security and the ‘Net Zero’ target for the year 2070 through international cooperation, technology transfer, and joint research and development (R&D).