India Geothermal Energy Market Size

The India Geothermal Energy Market is currently experiencing a notable transformation, driven by a growing emphasis on sustainable energy sources. This shift is largely influenced by the increasing awareness of climate change and the need for cleaner alternatives to fossil fuels. As the nation seeks to diversify its energy portfolio, geothermal energy emerges as a viable option, offering a stable and reliable source of power. The government appears to be actively promoting this sector through various initiatives, which may encourage investment and development in geothermal projects across the country. Furthermore, advancements in technology could enhance the efficiency and feasibility of geothermal energy extraction, potentially leading to a broader adoption of this resource. In addition to government support, the India Geothermal Energy Market seems to be benefiting from collaborations between public and private entities. These partnerships may facilitate knowledge sharing and resource allocation, thereby accelerating project implementation. Moreover, the increasing demand for energy in urban areas could further stimulate interest in geothermal solutions. As stakeholders recognize the potential of this renewable energy source, the market is likely to witness a surge in exploration and production activities, positioning geothermal energy as a key player in India's energy landscape.

Government Initiatives and Support

The Indian government is actively promoting geothermal energy through various policies and incentives. This support may lead to increased investments and the establishment of new projects, fostering growth in the sector.

Technological Advancements

Innovations in geothermal technology are likely to enhance the efficiency of energy extraction and utilization. These advancements could make geothermal energy more accessible and economically viable for a broader range of applications.

Public-Private Partnerships

Collaborations between government bodies and private enterprises appear to be on the rise, facilitating resource sharing and expertise. Such partnerships may accelerate project development and implementation in the geothermal sector.

The increasing energy demand in India is a pivotal driver for the India Geothermal Energy Market. As the population grows and urbanization accelerates, the need for sustainable and reliable energy sources intensifies. According to recent estimates, India's energy consumption is projected to rise significantly, necessitating a shift towards renewable energy sources. Geothermal energy, with its potential to provide a stable and continuous power supply, appears to be a viable solution. The government has recognized this need and is likely to promote geothermal projects to meet the rising energy demands, thereby enhancing the market's growth prospects.

The potential for investment in the India Geothermal Energy Market is becoming increasingly attractive. With the global shift towards renewable energy, investors are looking for opportunities in emerging markets like India. The geothermal sector offers a unique proposition due to its ability to provide baseload power, which is essential for energy security. Recent reports indicate that investments in renewable energy projects, including geothermal, are expected to surge as the government continues to support infrastructure development. This influx of capital could lead to the establishment of new geothermal plants, enhancing the overall market landscape.

Technological advancements are transforming the landscape of the India Geothermal Energy Market. Innovations in drilling techniques, enhanced geothermal systems, and improved resource assessment methods are making geothermal projects more feasible and cost-effective. For instance, the development of binary cycle power plants has enabled the utilization of lower temperature geothermal resources, expanding the potential for geothermal energy generation. As these technologies continue to evolve, they are likely to attract investment and drive the growth of the geothermal sector in India, making it a more competitive player in the renewable energy market.

The regulatory framework established by the Indian government is a significant driver for the India Geothermal Energy Market. Policies aimed at promoting renewable energy, such as feed-in tariffs and tax incentives, create a conducive environment for geothermal projects. The government has also initiated various programs to facilitate research and development in geothermal energy, which could lead to increased exploration and utilization of geothermal resources. As regulatory support strengthens, it is expected that more private players will enter the market, further stimulating growth and innovation in the geothermal sector.

India's commitment to environmental sustainability is a crucial factor influencing the India Geothermal Energy Market. The country has set ambitious targets to reduce carbon emissions and increase the share of renewable energy in its energy mix. Geothermal energy, being a clean and renewable source, aligns well with these sustainability goals. The government aims to achieve 500 GW of renewable energy capacity by 2030, and geothermal energy could play a significant role in this transition. This focus on sustainability not only encourages investment in geothermal projects but also fosters innovation in technology and infrastructure, potentially leading to a more robust market.

The India Geothermal Energy Market is currently characterized by a dynamic competitive landscape, driven by increasing energy demands and a growing emphasis on sustainable energy solutions. Key players such as ONGC (IN), Tata Power (IN), and Adani Green Energy (IN) are actively shaping the market through strategic initiatives aimed at enhancing their operational capabilities and market presence. ONGC (IN) has positioned itself as a leader in geothermal exploration, focusing on innovative drilling technologies and partnerships with research institutions to optimize resource extraction. Tata Power (IN) emphasizes regional expansion and diversification of its energy portfolio, integrating geothermal energy into its broader renewable strategy. Adani Green Energy (IN) is leveraging its strong financial backing to invest in geothermal projects, indicating a shift towards a more diversified energy mix that includes geothermal alongside solar and wind energy.

The business tactics employed by these companies reflect a concerted effort to localize operations and optimize supply chains, which is crucial in a moderately fragmented market. The competitive structure is influenced by the collective actions of these key players, who are increasingly collaborating with local governments and stakeholders to enhance project viability and community acceptance. This collaborative approach not only strengthens their market position but also fosters a more sustainable operational framework.

In August 2025, ONGC (IN) announced a partnership with the Indian Institute of Technology to develop advanced geothermal technologies aimed at improving energy efficiency. This strategic move underscores ONGC's commitment to innovation and positions it favorably in a market that increasingly values technological advancements. The collaboration is expected to yield significant improvements in geothermal resource management, potentially setting new industry standards.

In July 2025, Tata Power (IN) launched a pilot geothermal project in Maharashtra, marking a significant step in its strategy to diversify its renewable energy portfolio. This initiative not only demonstrates Tata Power's commitment to sustainable energy but also highlights its proactive approach to exploring geothermal potential in India. The pilot project is anticipated to provide valuable insights into the feasibility of larger-scale geothermal operations in the region.

In September 2025, Adani Green Energy (IN) secured funding for a new geothermal project in Gujarat, which is expected to enhance its renewable energy capacity significantly. This funding reflects the growing investor confidence in geothermal energy as a viable alternative to traditional energy sources. The project is likely to bolster Adani's position in the renewable sector, aligning with its long-term sustainability goals and commitment to reducing carbon emissions.

As of October 2025, the competitive trends in the India Geothermal Energy Market are increasingly defined by digitalization, sustainability, and the integration of artificial intelligence in operational processes. Strategic alliances among key players are shaping the landscape, fostering innovation and enhancing project execution capabilities. Looking ahead, the competitive differentiation is expected to evolve from traditional price-based competition towards a focus on technological innovation, reliability in supply chains, and sustainable practices, which will be critical in meeting the future energy demands of India.