In its bid to expand the country’s renewable energy portfolio, the ministry of new and renewable energy may seek to exploit abandoned oil wells to leverage geothermal energy, official sources told FE.
The government in collaboration with IIT Chennai, is studying the potential of harnessing geothermal energy in three abandoned oil wells in Bikaner, Rajasthan.
The pilot project includes setting up a 450 kilowatt facility in the oil wells to see the commercial feasibility of tapping geothermal energy.
“If that is successful, then we will think of scaling up geothermal energy. Critically, geothermal energy has huge potential but we have not taken it into a scale where from a proof of concept to commercialisation has been tried out,” said an official.
Additionally, the government is also planning to come out with a scheme in order to provide financial assistance for development of small hydro power projects with capacity up to 25 MW.
The Geological Survey of India (GSI) has carried out exploration of geothermal energy in various recognized geothermal fields and has estimated a potential of about 10,600 MW of geothermal power in the country, as per a 2022 report.
Singareni Collieries Company Limited (SCCL) has commissioned a 20 kW pilot geothermal power plant in Manuguru area of Bhadradri Kothagudem district in Telangana.
The government is implementing a “Renewable Energy Research and Technology Development Programme (RE-RTD)” through various research institutions and industry to develop indigenous technologies and manufacturing for widespread applications of new and renewable energy in an efficient and cost-effective manner, including harnessing the geothermal energy.
Geothermal energy can provide around-the-clock electricity generation, heat production and storage. As the energy source is continuous, geothermal power plants can operate at their maximum capacity throughout the day and year.
On average, global geothermal capacity had a utilisation rate over 75% in 2023, compared with less than 30% for wind power and less than 15% for solar PV, according to the International Energy Agency (IEA).
In addition, geothermal power plants can operate flexibly in ways that contribute to the stability of electricity grids, ensuring demand can be met at all times and supporting the integration of variable renewables such as solar PV and wind.
“The availability of geothermal power would be particularly valuable to bolster electricity security in regions looking to transition away from coal-fired power, such as China, India and Southeast Asia. China, the United States and India have the largest market potential for next-generation geothermal electricity, together accounting for three-quarters of the global total,” the IEA had said in its earlier report.
Within Gujarat, the eastern coast of Andhra Pradesh and the central Son Narmada Fault Zone are among the key areas for geothermal power generation development, the report had highlighted.
IEA estimates India to be the third-largest market for next-generation geothermal power capacity by 2050. “The dispatchability of next-generation geothermal would pair well with the production profile of solar PV in India, which would otherwise reach 35% of total electricity generation by 2035 and 50% by 2050,” it said.
The agency asserted that if next-generation geothermal expands quickly enough in India, it could also eliminate the need for some solar PV capacity and batteries, creating a more diverse clean energy mix.