Study of opportunities for strategic development of geothermal energy in India

Abstract

With the expected increase of two major drivers, i.e. GDP and population, energy demand in India will roughly double by 2040. This energy demand is expected to be met by thermal sources which means that CO2 emission may increase from 7% of the world emission today to 14%. As a part of Paris Climate Agreement, India set the goal to generate 40% of its cumulative energy demand from non-fossil fuels by 2030 by promoting the use of renewable energy sources. Among various sources of renewable energy, the exploration and development of geothermal energy could contribute to India’s energy switching plan. The purpose of this study was to identify opportunities for strategic development of geothermal energy in India as part of the energy mix. The Geological Survey of India has identified 350 geothermal prospects in the country with surface temperatures in the ranged 37-90°C. Most of these zones are elongated, spanning several hundred kilometres in length. Despite being low enthalpy, it is anticipated that these resources could significantly contribute through various direct use applications. The present work regards the lack of geothermal legislation in India as a significant threshold for development. Current legislations / draft policy on geothermal energy development were reviewed in the light of operational in-force policies on other sources of renewable energy. Various important factors which could be improved like assured power purchase agreements, power evacuation, loan guarantee programmes, clearances, lack of clarity in policy and regulatory legislation along with non-availability of data were identified.

. In this paper we also carry out a policy mapping and stakeholder analysis of India’s geothermal energy sector using the PESTLE (political, economic, social, technological, legal, and environmental) approach. Multidisciplinary stakeholders have been identified and their relationship to geothermal development have been described. The outcome of the analysis emphasizes the importance of strategically aligning stakeholders based on policy, regulatory, fiscal incentives, financing, manufacturing, transmission requirement, and priority studies. The impact on levelized cost of energy (LCOE) by incorporating in-principle incentives from the draft policy for the Puga geothermal power plant was carried out. The model shows an attractive tariff band within saleable range. Cascade direct use can further enhance the financial viability.