SECI eyes geothermal power in Andaman & Nicobar Islands with new EOI
The Solar Energy Corporation of India Limited (SECI) has invited Expressions of Interest (EoIs) from agencies to undertake geothermal resource assessment, exploration and potential power plant development in the Andaman & Nicobar Islands.
The initiative is aimed at assessing the commercial viability of geothermal energy in the island territory and forms part of the implementation of the National Policy on Geothermal Energy, notified by the Ministry of New and Renewable Energy (MNRE) in September 2025.
The EoI seeks participation from developers, drilling agencies, technology providers, research institutions and integrated energy companies with expertise in geothermal exploration and development. The exercise is intended to identify technically capable agencies for what could become one of India’s first geothermal power projects in an island region.
Island focus
The Andaman & Nicobar Islands have been identified by the Geological Survey of India as one of the country’s major geothermal provinces. Owing to their geographical isolation, the islands currently depend largely on imported fossil fuels and diesel-based electricity generation.
According to SECI, geothermal energy has the potential to provide indigenous, weather-independent baseload renewable power, improving long-term energy security for the islands.
India’s theoretical geothermal resource potential is estimated at around 10,600 MW. The country has 381 documented hot springs, with 42 geothermal manifestations identified as promising sites for future exploration.
Project plan
The proposed programme will be implemented in phases. It will begin with geological, geophysical and geochemical investigations, followed by exploratory drilling, resource validation and, subject to successful resource confirmation, development of a geothermal power plant.
The indicative project capacity is expected to be between 5 MW and 20 MW.
SECI has indicated that the resource assessment and feasibility stage may take around 18 months, while power plant development is expected to require a further 24 months following successful resource validation.
For future competitive bidding, the agency has proposed a tariff ceiling of Rs 15 per kWh and a Power Purchase Agreement (PPA) tenure of 20-25 years. Electricity generated under the project will be procured by the Electricity Department of the Andaman & Nicobar Administration.
Participation
The EoI is open to both Indian and international entities, either individually or through consortiums. SECI is seeking organisations with experience in geothermal exploration, deep drilling, preferably to depths of 1,000 metres or more, renewable energy project development or integrated infrastructure development. International geothermal technology providers and specialist consultants are also eligible to participate independently or in partnership with Indian entities.
The deadline for submitting EoIs is September 18, 2026. A pre-submission meeting has been scheduled for August 17, 2026.
SECI has clarified that the EoI is intended for market discovery, capability mapping and stakeholder consultation. It does not constitute a commitment to award work, issue tenders or grant exclusivity.
