Firms awaits the new geothermal policy in India

New Delhi:With the government readying a policy on geothermal energy, private companies in the country are betting high on one of the cleanest sources of power.


Currently, geothermal electricity generation is there in 24 countries and the worldwide installed capacity is 10,715 Mw. In India, companies planning to use heat from the earth's inner layers to produce electricity include Tata Power, Thermax and GeoSyndicate.

Companies see good potential in areas near Leh and Godavari. The success of a project will depend on its promoter.

It needs heavy pocket to invest on this, as the initial investment cost is much higher.

Government will come out with a clear policy framework on the allotment of acreages and control over heat.

The company Thermax has signed a memorandum of understanding with the Gujarat government to set up a geothermal power plant in that state. Tata Power already holds stake in Geodynamics, operating an Australian basin with an enhanced geo-thermal system. It has also got a licence to develop a 240 Mw unit in Indonesia.

The location, the cost will range be $3-4 million per Mw. Thermax is on the verge of signing an agreement with the Maharashtra government for developing one block.

The industry wants support from the government on exploration funding and technological assistance,.

The government will come up with a policy on geothermal energy soon. But an exact timeframe cannot be given, as so many players are involved.

India is not known for its geo-thermal reserves. Apart from the Puga area in Ladakh, there is no other region which has enhanced geothermal capability.