US geothermal energy development, potential and future outlook

The U.S. is a global leader in geothermal energy production — it has some of the world’s largest geothermal power plants and vast untapped potential. Geothermal energy uses heat from within the Earth to generate electricity and provide direct heating.

  • Installed capacity (as of 2024): ~3.8 gigawatts (GW)
  • Share of U.S. electricity generation: <0.5%
  • Leading states: California, Nevada, Utah, Oregon, Idaho, and Hawaii

Major geothermal projects in United States are:

The Geysers (California): The largest geothermal complex in the world, producing over 1.5 GW.

Imperial Valley (California): Includes several plants near the Salton Sea, an area also rich in lithium resources.

Coso (California): One of the top three U.S. geothermal fields.

Nevada: Home to dozens of smaller plants and active exploration projects.

Current technologies include:

Enhanced Geothermal Systems (EGS): Emerging technology that creates artificial reservoirs in hot dry rock — could vastly expand geothermal potential beyond traditional hydrothermal areas.

  • Example: Fervo Energy in Nevada and Utah, a pioneer in commercial EGS.

Superhot rock geothermal: Research into drilling deeper to access higher-temperature zones for ultra-efficient power generation.

Geothermal heating and cooling: Increasing use of ground-source heat pumps for homes, schools, and businesses.

Federal and state support:

Department of Energy (DOE): Through its Geothermal Technologies Office (GTO), the DOE funds R&D and demonstration projects.

Inflation Reduction Act (2022): Extended tax credits and incentives for renewable energy projects, including geothermal.

State initiatives: California and Nevada have renewable portfolio standards (RPS) that encourage geothermal development.

Future outlook:

The DOE’s GeoVision report (updated in recent years) estimates that geothermal electricity generation could increase more than 26-fold by 2050, potentially providing:

  • 60+ GW of electric capacity
  • Widespread geothermal heating applications
  • Major contributions to U.S. decarbonization goals

The challenges ahead:

High upfront drilling costs

Exploration risk (finding viable reservoirs)

Permitting and environmental review delays

Transmission infrastructure needs