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India Explores Geothermal Energy from Abandoned Oil Wells

Written by: Team Angel OneUpdated on: 24 Jun 2025, 9:16 pm IST
India is running a pilot in Rajasthan to see if old oil wells can be used to produce geothermal energy, tapping into unused heat beneath the surface.
India Explores Geothermal Energy from Abandoned Oil Wells
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As per a Moneycontrol news report, the Ministry of New and Renewable Energy (MNRE) has commissioned IIT Madras to conduct a pilot project to test the feasibility of geothermal energy extraction using closed oil wells. The project is located in Bikaner, Rajasthan, and involves 3 abandoned oil wells. The proposed capacity for this pilot is 450 kilowatts (kW).

Use of Abandoned Infrastructure

India has over 13,348 abandoned oil wells, according to the Ministry of Petroleum and Natural Gas. These wells are now being considered for repurposing to extract geothermal energy. The current plan involves minimal retrofitting, as the basic infrastructure is already in place.

Untapped Potential

A 2022 Geological Survey of India (GSI) report estimated a total geothermal potential of around 10,600 megawatts (MW) across the country. Despite this, India has not yet developed even 1 MW of geothermal power. Geothermal energy involves using heat from beneath the Earth's surface to produce electricity or provide heating.

Technology and Method

In this model, water or fluids are pumped into the existing oil wells, where underground heat raises their temperature. These heated fluids are then brought back to the surface to generate electricity or serve other energy needs. The government’s Renewable Energy Research and Technology Development Programme (RE-RTD) is funding the effort.

Read More: HDFC Bank Board to Release Q1FY26 Results on July 19, 2025!

Long-Term Plans 

The geothermal initiative aligns with India's energy plans. While geothermal is not part of the 2030 target of 500 GW non-fossil capacity, the government has set a longer-term goal of reaching 1,800 GW of non-fossil fuel-based power capacity by 2047 under the Viksit Bharat programme. This includes solar, wind, hydropower, bioenergy, and nuclear, but geothermal remains largely unexploited.

Conclusion

India is testing a low-cost model to generate geothermal power using unused oil wells. If proven feasible, it may add another source to the country’s growing clean energy mix.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jun 24, 2025, 3:46 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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