Sri Vijaya Puram, Aug. 14: The Centre has taken a significant step towards reducing the Andaman and Nicobar Islands’ dependence on diesel-based electricity by initiating the process to assess the commercial viability of geothermal energy. The Solar Energy Corporation of India (SECI) Ltd has invited Expressions of Interest (EoIs) from qualified agencies to undertake geothermal resource assessment, exploration and the possible development of power plants in the island chain, marking a major move towards strengthening long-term energy security through renewable sources.
The initiative is aimed at identifying technically capable organisations that can evaluate geothermal reserves and, subject to successful resource validation, develop one of India’s first geothermal power projects in an island region. SECI has invited participation from developers, drilling agencies, technology providers, research institutions and integrated energy companies with expertise in geothermal exploration and development.
The Andaman and Nicobar Islands currently rely heavily on diesel transported from the mainland to operate electricity-generating stations. With conventional large-scale power plants not considered feasible because of the ecologically sensitive nature of the islands, the government is examining geothermal energy as an alternative source capable of providing uninterrupted, weather-independent renewable power.
Geothermal energy is produced using naturally occurring underground steam or hot water. Unlike solar or wind power, it can generate electricity continuously throughout the day regardless of weather conditions, making it suitable as a stable baseload power source.
The islands possess geological characteristics that make geothermal exploration a viable option. The archipelago lies along an active tectonic boundary where the Indian Plate continues to move beneath the Burma Plate, resulting in regular seismic activity. The region is also home to Barren Island, South Asia’s only active volcano. The Geological Survey of India has identified the Andaman and Nicobar Islands as one of the country’s major geothermal provinces.
The programme forms part of the implementation of the National Policy on Geothermal Energy notified by the Ministry of New and Renewable Energy in September 2025. SECI’s assessment seeks to determine whether the available geothermal resources can support commercially viable electricity generation.
According to the proposed framework, the project will begin with geological, geophysical and geochemical investigations before progressing to exploratory drilling and resource validation. If sufficient geothermal resources are confirmed, the project will move to the development of a power plant with an indicative capacity ranging between 5 MW and 20 MW.
SECI has estimated that the resource assessment and feasibility stage could take about 18 months, while construction of a power plant, following successful resource confirmation, may require an additional 24 months. The corporation has proposed a tariff ceiling of ₹15 per kilowatt-hour and a Power Purchase Agreement tenure of 20 to 25 years under future competitive bidding. Electricity generated under the project will be procured by the Electricity Department of the Andaman and Nicobar Administration.
The EoI is open to Indian and international organisations, either independently or through consortiums. Eligible participants include entities experienced in geothermal exploration, renewable energy development, integrated infrastructure projects and deep drilling, preferably exceeding 1,000 metres. International geothermal technology providers and specialist consultants may also participate independently or partner with Indian firms.
SECI has scheduled a pre-submission meeting for August 17, 2026, as part of the ongoing consultation process before receiving proposals.
