Ladakh is moving towards a major clean energy transformation with the country’s first commercial geothermal energy initiative. Lieutenant Governor Vinai Kumar Saxena has approved a five-year extension of the MoU with Oil and Natural Gas Corporation for the development of India’s first geothermal power project in Puga Valley, located at an altitude of more than 14,000 feet.

The original tripartite agreement signed in February 2021 between the Ladakh Administration, LAHDC Leh, and ONGC Energy Centre had expired in February 2026. Due to severe weather conditions and difficult terrain, several parts of the project remained unfinished, prompting ONGC to seek an extension. Under the renewed agreement, ONGC will establish a 1 MWe pilot geothermal power plant in Puga Valley and prepare a Detailed Project Report for large-scale geothermal energy development in the region. The project marks a historic milestone, as India currently does not operate any large-scale commercial geothermal power plants.

Geothermal energy harnesses heat naturally generated beneath the Earth’s surface. In the next phase of the project, ONGC Energy Centre plans to deepen the existing geothermal well to 1,000 metres and drill an additional well during the upcoming work season. The pilot plant is expected to undergo testing and commissioning during FY 2026–27.

Further exploration and geothermal surveys will also be carried out in the Chumathang region of Ladakh as part of Phase II, alongside drilling operations and preparation of a commercial-scale development plan. Both Puga Valley and Chumathang lie within the Himalayan geothermal belt, an area known for high underground heat caused by tectonic activity. Test drilling in Puga Valley has already produced high-pressure steam and hot fluids with temperatures exceeding 200°C at depths of around 400 metres.

Officials believe the geothermal initiative, together with solar energy projects in Ladakh, will reduce reliance on fossil fuels, cut carbon emissions, and strengthen the region’s position as a renewable energy hub. LG Saxena described the project as a landmark step in India’s clean energy mission and an important move toward making Ladakh carbon-neutral and environmentally sustainable.

Despite harsh weather conditions and technical challenges, ONGC successfully drilled a 405-metre geothermal well in 2025 — the deepest geothermal well drilled in Ladakh so far. Scientific studies indicate underground temperatures above 240°C, considered suitable for geothermal power generation. The proposed pilot plant is expected to generate 1 MW of electricity using turbine inlet temperatures of around 200°C.

Disclaimer: This image is taken from ANI.