May 26, 2026
India stands at the cusp of a significant transformation in its renewable energy landscape, as the nation’s first geothermal power project in Ladakh’s Puga Valley receives a major green light, thrusting a long-overlooked energy source into the national spotlight. The Oil and Natural Gas Corporation (ONGC) has successfully secured a five-year extension of its memorandum of understanding (MoU) with the Ladakh administration and the Ladakh Autonomous Hill Development Council (LAHDC), Leh, effectively reviving a project that many consider to be the key to unlocking India’s untapped “renewable gold” .
This approval, granted by Lieutenant Governor Vinai Kumar Saxena, extends the agreement which originally expired in February 2026, after ONGC cited delays caused by the region’s notoriously harsh weather and inaccessible terrain . Situated at a dizzying altitude of over 14,000 feet in eastern Ladakh, the Puga Valley is no stranger to extremes; however, beneath its frozen surface lies a super-heated reservoir that scientists have identified as one of the most promising geothermal fields in the country, thanks to the presence of hot springs, sulphur vents, and intense tectonic activity along the Himalayan belt .
The road to this point has been long, but recent technical breakthroughs suggest that the wait may soon be over. Despite the challenges, ONGC successfully drilled the deepest geothermal well in Ladakh in 2025, reaching a depth of 405 meters . The data retrieved from this borewell has exceeded expectations, with geothermometric studies revealing subsurface temperatures exceeding 240 degrees Celsius . This intense heat, generated by the collision of tectonic plates deep beneath the earth’s crust, is more than sufficient to generate electricity.
Under the revised and ambitious plan, ONGC will first establish a 1-MWe pilot geothermal power plant in the Puga Valley . Simultaneously, the ONGC Energy Centre will begin deepening the existing well to 1,000 metres during the 2026 working season, with plans to drill another well of similar depth in the subsequent phase. The testing, evaluation, and commissioning of this pilot plant are expected to be completed during the financial year 2026-27, with the plant expected to operate at a turbine inlet temperature of approximately 200 degrees Celsius .
The strategic importance of this project extends far beyond its megawatt capacity. For the remote Union Territory of Ladakh, which faces acute logistical challenges in transporting diesel and maintaining conventional power lines during the harsh winter months when roads are often snow-blocked, geothermal energy offers a reliable, weather-independent baseload power source .
Unlike solar or wind energy, which are intermittent, geothermal energy flows continuously regardless of the time of day or season, making it an ideal solution for the region’s energy security. Lieutenant Governor Saxena captured the sentiment perfectly, stating that the project has the potential to become a “game changer for Ladakh” and a landmark initiative in India’s clean energy journey, helping to reduce dependence on conventional fuels and moving the region closer to its goal of becoming carbon-neutral .
While Ladakh serves as the spearhead, the implications of this success are national in scope. A recent report released in May 2026 by Project InnerSpace in partnership with the Council on Energy, Environment and Water (CEEW) has placed India’s geothermal potential in stark numerical terms. The report estimates the country’s technical geothermal potential at more than 11,000 GW for industrial heat, over 1,500 GW for cooling applications, and 450 GW for electricity generation—a figure nearly equivalent to India’s current installed power capacity .
Even partial deployment of this resource could significantly ease pressure on the national power grid while decarbonizing hard-to-abate sectors. The report specifically identifies data centres, cities, and industrial operations as key beneficiaries, noting that geothermal cooling systems can cut electricity use by 30–40% . Furthermore, the study pinpoints several states beyond the Himalayas, including Gujarat, Uttar Pradesh, West Bengal, Telangana, Maharashtra, and Andhra Pradesh, as leading regions for geothermal deployment, suggesting that the “gold” is distributed far more widely than previously assumed .
The convergence of the Ladakh pilot project with the recent introduction of India’s National Policy on Geothermal Energy suggests that the country is finally ready to move past the exploration risks and uncertain drilling outcomes that have plagued the sector for decades . As ONGC prepares the Detailed Project Report (DPR) for large-scale commercial exploitation in Ladakh’s Puga and Chumathang areas, the success of this 1 MW pilot is seen as the crucial litmus test for the viability of geothermal energy across the subcontinent. If successful, India will not only have secured a clean, firm power source for its northern frontiers but will have also unlocked a massive, diversified, and sustainable energy reserve capable of supporting its rise as a manufacturing and technological hub for decades to come .
