The Puga Geothermal Power Project is India's major demonstration project for generating electricity from geothermal energy. It is located in Puga Valley, Ladakh, at an altitude of more than 14,000 ft. The project is being developed by ONGC Energy Centre (OEC).
Key Facts
| Feature | Details |
|---|---|
| Location | Puga Valley, Ladakh |
| Developer | ONGC Energy Centre |
| Type | Geothermal power project |
| Demonstration capacity | 1 MW |
| Geothermal wells | 2 wells |
| Well depth | About 1,000 m each |
| Wells commissioned | July 2026 |
| Purpose | Reservoir evaluation and demonstration of geothermal electricity generation |
The two wells commissioned in July 2026 are intended to evaluate the geothermal reservoir and support India's first 1-MW demonstration geothermal power project.
Why Puga?
Puga Valley is particularly suitable for geothermal energy because it has:
- Hot springs
- Underground geothermal heat
- Geothermal manifestations such as mud pools and steam vents
- High-temperature geothermal resources
The heat stored beneath the Earth's surface can be extracted through wells and converted into useful energy.
Working of the Project
The basic process can be represented as
EARTH'S SURFACE │ Production Wells ↓ Hot Geothermal Fluid │ ↓ Heat / Steam System │ ↓ TURBINE │ ↓ GENERATOR │ ↓ ELECTRICITY │ ↓ Reinjection Well │ ↓ Geothermal Reservoir
he basic principle is to bring hot geothermal fluid from underground to the surface. Its heat is used to produce steam or vapour, which drives a turbine connected to a generator. The cooled fluid can subsequently be reinjected underground.
Advantages of the Puga Project
1. Renewable
It uses naturally occurring heat from inside the Earth and is therefore a renewable source of energy.
2. Round-the-clock potential
Unlike solar and wind energy, geothermal power is not directly dependent on weather conditions or daylight and can potentially provide continuous electricity.
3. Low-carbon
Geothermal power can contribute to India's transition towards cleaner and low-carbon energy sources.
4. Useful for Ladakh
Reliable local electricity generation could be particularly valuable in Ladakh, a remote and high-altitude region.
5. Demonstration value
The project can provide valuable technical experience for the development of larger geothermal projects in India.
Challenges
- Very high altitude and difficult terrain at Puga.
- High cost of drilling geothermal wells.
- Technical difficulties associated with geothermal exploration and drilling.
- The underground geothermal reservoir needs to be carefully evaluated before large-scale development.
- Geothermal fluids may cause scaling and corrosion of equipment.
- A demonstration project does not automatically mean that large-scale commercial generation will be economically viable.
Importance for India
The Puga project is significant because it represents India's movement from geothermal-resource exploration towards actual geothermal power generation.
India notified its National Policy on Geothermal Energy in September 2025, providing a policy framework for developing geothermal resources.
The Puga wells commissioned in 2026 represent an important step towards implementing this policy and demonstrating the practical use of geothermal energy in India.
India is estimated to have a theoretical geothermal resource potential of nearly 10,600 MW.
Conclusion
The Puga Geothermal Power Project is an important milestone in India's renewable-energy development. By utilizing the natural heat beneath the Earth's surface, the project can demonstrate the potential of reliable, renewable and low-carbon geothermal electricity, particularly in remote regions such as Ladakh.