The United States geothermal energy sector gained renewed momentum under the Biden Administration, following the introduction of far-reaching climate policies, such as the Inflation Reduction Act, and the deployment of federal funding to support new projects.
President Trump has demonstrated support for geothermal energy, as the sector continues to expand. The rollout of several large-scale geothermal projects across the country could help diversify the U.S. energy sector over the coming decades.
U.S. Geothermal Development
Between 2021 and June 2025, 27 new geothermal power purchase agreements were signed. In 2024, U.S. geothermal power capacity stood at 3.97 gigawatts-electric (GWe), an 8% increase from 2020.
By 2025, California hosted 53 of the 99 U.S. geothermal power plants, equivalent to 72% of the national capacity. Meanwhile, Nevada was home to 32 power plants with 892 MWe of installed capacity; Oregon and Utah each had four plants; Hawai’i and Alaska had two each; and Idaho and New Mexico had one each.
Trump’s 2025 One Big Beautiful Bill Act preserved tax credits for geothermal. Meanwhile, U.S. Energy Secretary Chris Wright said, “This is just an awesome resource that’s under our feet,” referring to geothermal energy, demonstrating the government’s support for the renewable energy source.
Federal Support for Geothermal Energy
In July, the Senate Energy and Natural Resources Committee approved legislation aimed at easing permitting for geothermal energy development. If it passes, it would establish a geothermal permitting task force within the Interior Department (DOI) and expedite National Environmental Policy Act reviews.
The legislation would also allow the DOI to charge geothermal companies specific costs related to the permitting process and require the department to establish standard guidelines to ensure geothermal projects are “environmentally responsible.”
In September, the U.S. Department of Energy (DOE) announced more than $99 million for 21 projects selected to advance nationwide geothermal energy development. The project operators will be expected to carry out field-scale tests of next-generation geothermal technologies and exploration drilling to assess the viability of development.
DOE Under Secretary of Energy Kyle Haustveit stated, “These projects will empower American innovators to unlock the tremendous geothermal resources beneath our feet.” He added, “Under President Trump’s leadership, we’re advancing next-generation geothermal technologies that can lower costs, strengthen American energy dominance, and turn more of our vast domestic geothermal resources into reliable and affordable power.”
If successful, the projects could help researchers better understand the feasibility of developing other U.S. geothermal projects and advance related technologies to enhance access to the clean power source.
New Geothermal Leases
The Trump administration attracted about $4.8 million in total receipts from the sale of geothermal energy leases in Nevada in October, with the U.S. companies Ormat and Invenergy investing the most. The auction attracted winning bids on 60 of the 83 land parcels offered by the DOI’s Bureau of Land Management (BLM), covering 186,641 acres, according to the agency..
This was the fourth of six government geothermal auctions being held this year and the first in Nevada in 2026.. The sale reflects President Trump’s support for geothermal energy. The government hopes that the development of new geothermal projects will help meet the rising U.S. power demand and support the accelerated deployment of data centers across the country.
Reno-based geothermal developer Ormat contributed almost half of the auction’s total bids to win eight parcels totaling about 20,000 acres for $2.29 million. Meanwhile, Invenergy, which recently expanded into geothermal, paid $694,947 for nine parcels on 37,000 acres. Glovate LLC, established in Delaware in October, claimed six parcels totaling 24,000 acres for $570,601.
Renewable Energy Project Conflicts
Parts of two geothermal parcels acquired by United Minerals and Mining LLC overlap with NextEra Energy’s proposed Sawtooth solar project. NextEra had previously requested that the BLM ‘remove, defer or reconfigure’ three proposed geothermal parcels to avoid the overlap.
According to NextEra, the geothermal parcels up for lease overlap with approximately 6,000 acres, or roughly 60% of its planned 1 GW Sawtooth Energy Center in Nye County, Nevada.
The BLM responded to the request, saying, “NextEra must collaborate with any potential lessee and adjust its operations accordingly to avoid land use conflicts.” It clarified that if NextEra’s project is approved first, it would have the “senior right,” which would require any geothermal development to avoid having a negative impact on the project.
What Can We Expect from the Latest Geothermal Developments?
The latest developments highlight geothermal energy’s growing importance to the United States’ efforts to diversify its electricity supply and meet rising power demand. Federal funding, regulatory support, and new investment could help accelerate the deployment of geothermal technologies, particularly as data center expansion places additional pressure on the grid.
However, conflicts over land use demonstrate that project development may face competing interests and permitting challenges. The sector’s longer-term growth will ultimately depend on whether developers can turn promising resources into commercially viable, reliable power generation.
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