By Jeff Groenewold

    Public power districts and electric cooperatives focus on delivering safe, reliable and affordable electricity to the communities they serve––and they do that by utilizing a variety of energy generation resources, ranging from natural gas, coal, hydropower, nuclear, solar and wind. One energy source that is often overlooked is geothermal energy. Geothermal power has been used for many years and continues to improve as new technologies are developed.
    Geothermal energy is a renewable source of power that comes from heat inside the Earth. Geothermal resources are natural or man-made pockets of hot water found at varying temperatures and depths below the ground. Wells, which can be just a few feet deep to several miles deep, are used to bring extremely hot water and steam to the surface for a variety of applications, such as heating and cooling, direct use in industrial processes and electricity generation. 
    The strongest geothermal resources in the United States are often found in regions with active geology, such as areas near major tectonic plate boundaries. These resources are not limited to one location but are spread across several western states. One well-known example is The Geysers in Northern California, the largest geothermal power complex in the country. Facilities like this use injected water to create steam from underground heat, which spins turbines to generate reliable electricity for the power grid.
    In 2023, geothermal generation accounted for approximately 17 billion kilowatt-hours, the equivalent of a year’s worth of consumption for the city of Indianapolis. 
    The U.S. has about 3.9 gigawatts of geothermal power capacity. Most of this power is produced in California and Nevada, which together generate the majority of U.S. geothermal electricity. Smaller amounts of geothermal power are also produced in Alaska, Hawaii, Idaho, New Mexico, Oregon and Utah. 

Technology Advances and New Projects
New ways of exploring geothermal energy, such as enhanced geothermal systems (EGS) and superhot rock technology, are helping developers access heat sources that were not possible to use before. These new methods are making geothermal energy available in more places across the country. 
    In early 2025, investment in geothermal energy grew quickly, reaching $1.7 billion. One example of this growth is Fervo Energy’s Cape Station project in Utah. The project plans to produce 100 megawatts of power by the end of 2026 and increase to 500 megawatts by 2028. It already has approval to expand up to 2 gigawatts in the future. The project aims to produce electricity at a cost of $79 per megawatt hour, even without government subsidies.
    Geothermal has a high-capacity factor, near 90%, which makes it a strong source for around-the-clock power. Electric co-ops in the western U.S. can benefit from existing geothermal plants, while new technologies like EGS and hybrid designs are helping expand geothermal energy across the country. Continued federal support for tax credits, permitting and research lowers the cost and risk of new projects. 
Growing Investment and Project Development
Federal policy has helped drive recent growth in geothermal energy. The Geothermal Tax Parity Act (HR 6873), introduced in late 2025, aims to put geothermal projects on equal footing with oil and gas by extending important tax benefits, including exploration credits. Other proposed bills before the House Natural Resources Committee focus on improving permitting, reducing exploration risk, clarifying land use and supporting lease sales. 
    Together, these efforts help create a stronger path for geothermal energy development in the U.S.