Basics of Geothermal Energy
Geothermal energy is the use of underground, heated reservoirs for electricity generation. The United States is the top geothermal energy producer in the world, producing about 4 gigawatts of energy per year—enough to power about 3 million homes. Other top producers include Indonesia with about 2.5GW capacity, the Philippines with about 1.9GW, and Turkey with about 1.7GW. Calpine and Chevron, two U.S.-based companies, are major players in the geothermal industry. In the U.S.’ larger energy portfolio, geothermal energy currently accounts for 0.4% of the US national electricity generation. On a state level, it accounts for about 5% of California’s energy production and about 10% of Nevada’s energy production. Geothermal energy is a strong domestic energy source in the United States, and the Trump Administration has announced plans to increase investment in it. Still, many political and logistical factors must be considered when increasing investment in the geothermal sector.
Geothermal’s Political Reality
Past Bipartisan Support
Geothermal energy has a strong history of bipartisan support, with the passage of many pro-geothermal policies at both the state and federal levels. The U.S. Department of Energy has also consistently supported the sector’s development, so there is a strong federal foundation of support. Geothermal has been consistently considered a “middle ground” between Democrats and Republicans in the energy debate, as it is a cleaner energy source that avoids the controversies around solar and wind energy. Similarly, nuclear energy often garners bipartisan support as a cleaner form of energy, with increases in production occurring across Democrat- and Republican-run states. On the federal level, the Committing Leases for Energy Access Now Act, the Geothermal Energy Opportunity Act, and the Streamlining Thermal Energy through Advanced Mechanisms Act have all been introduced as bills to improve geothermal energy with bipartisan support.
Trump’s Policies and Geothermal
On January 20, 2025, President Donald Trump signed an executive order declaring a “National Energy Emergency.” This executive order calls for increasing domestic energy production through emergency approvals and expedited completion of energy infrastructure. The order names fossil fuels and geothermal heat as the two cleaner energy sources. For geothermal, where cost is a high barrier to entry, increasing the speed of implementation of projects will allow for more projects to be taken on under government funding. Noticeably, wind and solar energy were both left out of the order.
While Trump’s tariffs on China, Canada, and Mexico will harm the production of wind and solar energy, geothermal energy will likely remain unharmed by these tariffs, as it relies on domestic technology already used by oil and gas companies.
Chris Wright, The New Energy Secretary
Chris Wright, the new head of the Department of Energy, is the CEO of Liberty Energy, one of the nation’s biggest fracking companies. He is also a vocal supporter of geothermal energy, viewing it as a “tremendous potential energy source.” His company is also invested in Fervo Energy, an enhanced geothermal energy company, and Wright has first-hand experience with geothermal energy. In his address at Making America Geothermal: Modern Advances, he highlighted geothermal as a primary area of focus for the Department of Energy as it holds the potential to “better energize our country, improve the quality of life for everyone”.
Pros of Increasing Investment in Geothermal Energy
Low Levels of Pollution
Geothermal power plants are significantly better for the environment than fossil fuels. According to the U.S. Energy Information Administration, geothermal power plants release 97% less sulfur compounds, which cause acid rain, and 99% less CO2 than fossil fuel plants. Due to its limited carbon footprint, geothermal energy is considered helpful in the fight against climate change. One study found that megacities such as Los Angeles, Jakarta, and Bogota would all be able to support decarbonization by transitioning to geothermal energy while still being able to meet their current energy demands. The authors argue that through continued research and development into geothermal energy, there is the possibility to “reach near-zero emissions globally in 2050”.
Renewable Energy Source
Geothermal energy is also a renewable source of energy. It harnesses heat from the earth, which is constantly replenished due to the decay of radioactive elements below the surface. This heat remains available for billions of years, ensuring the sustainability of geothermal energy. It is also constantly available, regardless of weather, unlike energy sources like solar and wind.
Room for Growth
Map of US Geothermal Resources
While the United States is the world leader in geothermal energy, there is still plenty of room for growth. It has tapped less than 0.7% of its geothermal energy resources, with 95% of existing plants concentrated in California and Nevada. Advances in geothermal technology, such as enhanced geothermal systems and closed-loop geothermal systems being tested in Germany, mean that the next generation of energy production is within reach, potentially as early as 2030.
Cons of Increasing Investment in Geothermal Energy
Lacking Efficiency
Geothermal power plants are not very efficient in generating energy. Their conversion efficiency is lower than that of all thermal plants, with about a 12% conversion efficiency. Coal-fired power stations, the next lowest thermal plant for efficiency, are almost twice as efficient. Geothermal energy is also outpaced by natural gas, oil, and nuclear power stations. One way companies are trying to improve efficiency is through the use of artificial intelligence. AI can help predict changes in energy consumption and adapt the distribution of resources based on those predictions, improving the system’s efficiency.
Limited Spaces to Place Plants
There are some challenges associated with the placement of geothermal energy plants. They are best placed in high-volcanic areas with the right kind of rocks that are not too difficult to drill through and occur at a reasonable depth for drilling. In short, locating the perfect place for a geothermal plant is hard. These areas are also subject to high tectonic activity, which means they are at high risk for earthquakes and volcanic activity, which presents a risk for those who wish to invest in geothermal sources.
High Upfront Costs
Geothermal energy is expensive to install compared to other renewable energy sources. It can cost between $2.5-5 million for a power plant with a 1 megawatt capacity. Exploration for sites and drilling also drive up costs, delaying returns on investment. For reference, a 1-megawatt solar farm costs between $890,000 and $1.01 million to construct.
Conclusion
The Trump Administration has increased its investment in geothermal energy since the declaration of a national energy emergency, with the Department of Energy roadmap proposing $4.5 billion of investment for initial projects. Investing in this domestic energy resource increases the reliability of energy availability, produces energy from a cleaner source, and has massive growth potential. However, it does come with drawbacks, including high upfront costs, a lack of efficiency, and limited ability to place plants. In the long term, increasing investment is predicted to meet 15% of energy demands globally by 2050 and provide 1 million jobs by the end of the decade. The United States is prepared to ramp up investment in the geothermal energy sector in the race to harness US-based energy resources, with geothermal energy moving to become a much more central domestic energy source.