Govt advances geothermal energy plans in the Andamans

Business To Business, Kolkata, 13 August 2026:  The government is seriously considering tapping into the geothermal reserves around the Andaman and Nicobar Islands to meet the archipelago’s power requirements.
 
The Solar Energy Corporation of India (SECI) Ltd has invited Expressions of Interest (EoIs) from agencies to undertake geothermal resource assessment, exploration and potential power plant development in the island chain.
 
Geothermal energy is generated from sub‑surface steam or hot water. This is non‑polluting, renewable energy that can be generated round the clock in all weather conditions.
 
The Andamans are presently heavily dependent on diesel imports from the mainland to run generators that produce electricity. The Government is keen to reduce this dependence by generating green energy as conventional power plants are not a possibility in the eco‑sensitive zone.
 
Geothermal energy is a distinct possibility as the island chain sits directly on a very active tectonic boundary where the major Indian Plate continues to slide beneath the smaller Burma Plate, resulting in seismic activity. South Asia’s only active volcano is also located on Barren Island in the Andaman Islands.
 
The Geological Survey of India has also identified the islands as one of the country’s major geothermal provinces. Given this setting, SECI wants to assess the commercial viability of geothermal energy in the island territory.
 
This forms part of the implementation of the National Policy on Geothermal Energy, notified by the Ministry of New and Renewable Energy (MNRE) in September 2025. It now seeks participation from developers, drilling agencies, technology providers, research institutions and integrated energy companies with expertise in geothermal exploration and development.
 
The exercise is intended to identify technically capable agencies for what could become one of India’s first geothermal power projects in an island region.
 
Geothermal energy has the potential to provide indigenous, weather‑independent baseload renewable power, improving long‑term energy security for the islands, SECI says.
 
At the moment, India’s theoretical geothermal resource potential is estimated at around 10,600 MW. The country has 381 documented hot springs, with 42 geothermal manifestations identified as promising sites for future exploration.
 
The proposed programme will begin with geological, geophysical and geochemical investigations, followed by exploratory drilling, resource validation and, subject to successful resource confirmation, development of a geothermal power plant.
 
The indicative project capacity is expected to be between 5 MW and 20 MW. The resource assessment and feasibility stage may take around 18 months, while power plant development is expected to require a further 24 months following successful resource validation, SECI has indicated.
 
It has proposed a tariff ceiling of Rs 15 per kWh and a Power Purchase Agreement (PPA) tenure of 20–25 years for future competitive bidding. The Electricity Department of the Andaman and Nicobar Administration will procure electricity generated under the project.
 
Both Indian and international entities can participate, either individually or through consortiums. SECI is seeking organisations with experience in geothermal exploration, deep drilling, preferably to depths of 1,000 metres or more, renewable energy project development or integrated infrastructure development.
 
International geothermal technology providers and specialist consultants are also eligible to participate independently or in partnership with Indian entities.
 
A pre‑submission meeting has been planned for August 17, 2026.