Context: Recently, the Union Government has decided to develop India's first geothermal power project in eastern Ladakh.
Key Highlights

• The power project is known as Geothermal Field Development Project.
• The geothermal power project is planned to commission by the end of 2022.
• The power project will be established at Puga village of eastern Ladakh because Puga has been identified as the hotspot of geothermal energy in the country by the scientists.
• Puga is a place where it is uncovered with a potential of more than 100 mw of geothermal energies.
• The tripartite MOU was signed between ONGC Energy, LAHDC, Leh and the Power Department of UT Ladakh.

Phase-wise development of Geothermal Field Development Project

• In the first phase, the pilot project implemented by the ONGC-OEC will explore within the depth of 500 metres.
• It is planned to supply 24 hours free power to 10 neighbouring villages which are not connected with the northern grid for power supply.
• The second Phase is proposed for deeper and lateral exploration of geothermal reservoirs by drilling optimal number of wells and setting up of a higher capacity demo plant in Ladakh.
• The second phase will be the Research and Development stage or demonstration of the project.
• In the third phase, it is planned to promote joint ventures and commercial projects.

Significance of Geothermal Energy

• Environmentally Friendly: It is an environmentally-friendly resource as it has the potential to meet heating, cooling and electricity demands for the future.
• Renewable: It is a source of renewable energy that will last until the Earth is destroyed by the sun in around 5 billion years.
• Huge Potential: It is currently estimated that geothermal power plants could provide between 0.0035 and 2 terawatts of power.
• Sustainable / Stable: It provides a reliable source of energy as compared to other renewable resources such as wind and solar power because the resource is always available to be tapped into, unlike with wind or solar energy.
• No Fuel Required: It is a naturally occurring resource as there is no fuel required, such as with fossil fuels that are a finite resource which needs mining or otherwise extracting from the earth.

Challenges of Geothermal Energy

• Location Restricted: The largest single disadvantage of geothermal energy is that it is location specific.
• Earthquakes: It runs the risk of triggering earthquakes due to alterations in the Earth’s structure as a result of digging.
• High Costs: Geothermal energy is an expensive resource to tap into, with price tags ranging from around $2-$7 million for a plant with a 1 megawatt capacity.