Puga Valley Geothermal Energy Project, India’s First Geothermal Project

Puga Valley Geothermal Energy Project in Ladakh is an important step towards harnessing India’s geothermal energy potential. Located at an altitude of more than 14,000 feet, Puga Valley is known for its hot springs and strong geothermal activity. The project is being developed by the ONGC Energy Centre and aims to demonstrate electricity generation using heat stored beneath the Earth’s surface.

What is Geothermal Energy?

Geothermal energy is the energy obtained from the natural heat present inside the Earth. This heat warms underground rocks and water, which can be brought to the surface and used for electricity generation, heating, agriculture and other purposes. It is a renewable and relatively low-carbon source of energy that can provide power continuously.

• Source: Heat stored deep inside the Earth’s crust.
• Renewable: It is considered a renewable energy source because Earth’s internal heat is continuously generated.
• Electricity generation: Hot water or steam from underground can be used to drive turbines and generate electricity.
• Direct heating: Geothermal heat can be used directly for space heating, greenhouses and industrial processes.
• 24×7 availability: Unlike solar and wind energy, geothermal energy can provide continuous power and is less dependent on weather.
• Low emissions: Geothermal power generally produces lower greenhouse-gas emissions than fossil-fuel-based power.
• Geothermal hotspots: Areas with hot springs, geysers and volcanic activity often have significant geothermal potential.
• India’s potential: India has several promising geothermal regions, including Ladakh, Himachal Pradesh, Uttarakhand and Gujarat.
• Puga Valley: Puga Valley in Ladakh is one of India’s important geothermal sites and is being developed for geothermal power generation.

How Will the Puga Valley Geothermal Energy Project Generate Electricity?

Puga Geothermal Project will use the natural heat stored beneath the Earth’s surface to generate electricity. Geothermal fluids heated by underground rocks will be brought to the surface through production wells. The heat or steam will then be used to run a turbine connected to a generator, while the cooled water can be reinjected underground to support sustainable use of the geothermal reservoir. The project is being developed as a 1 MW pilot geothermal power project.

Step-by-Step Process

1. Drilling Geothermal Wells: Deep wells are drilled into the Earth’s crust to reach the hot geothermal reservoir. At Puga, two wells have been developed to around 1,000 metres depth.
2. Bringing Hot Fluid to the Surface: Underground water absorbs heat from hot rocks and becomes extremely hot. The production well brings this geothermal fluid towards the surface.
3. Producing Steam or Heat: Due to the high temperature, the geothermal fluid can produce steam, which can be used to drive a turbine.
4. Running the Turbine: The steam or geothermal heat is used to rotate a turbine. The turbine is connected to a generator.
5. Generating Electricity: As the turbine rotates, the generator converts mechanical energy into electrical energy.
6. Reinjecting Water: After the heat is extracted, the cooled geothermal fluid can be reinjected into the underground reservoir through an injection well. This helps maintain the geothermal system and reduce water wastage.

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National Policy on Geothermal Energy

National Policy on Geothermal Energy, notified by MNRE in September 2025, provides a framework to promote the exploration, development and utilisation of geothermal energy in India and supports the country’s goal of achieving Net Zero emissions by 2070.

• Promotes geothermal energy for electricity generation and direct-heat applications.
• Identifies promising areas, including 42 geothermal manifestations for further development.
• Encourages research, innovation and technology development in geothermal energy.
• Supports international cooperation and technology transfer.
• Promotes the possible repurposing of abandoned oil and gas wells for geothermal energy.
• Supports clean-energy transition and Net Zero by 2070 by diversifying India’s renewable energy mix and reducing dependence on fossil fuels.