Drilling Down What it Will Take to Harness the Potential of Next-Generation Geothermal
2 minute read
Executive Summary
The earth produces enough energy in the form of geothermal heat to meet global electricity demand more than 100 times over. Historically, this clean energy resource has been accessible only in specific geographies, where natural groundwater circulation carries the earth’s heat close to the surface. Now, next-generation geothermal technologies—which adapt drilling techniques developed in the oil and gas industry to access geothermal energy outside of regions with natural hydrothermal systems—promise to unlock geothermal resources almost anywhere in the world. In regions with high natural heat flow, like the western United States, the potential for existing next-generation geothermal technologies to deliver cost-competitive, clean, firm, on-demand power is already clear. For such promise to become a global reality, however, several technical hurdles must still be overcome.
This brief examines the technological advances that are driving the promise of widespread geothermal-sourced electricity, and the scale of opportunity in the United States for next-generation geothermal to generate electricity, provide flexible energy storage, and reduce grid load demand through cogeneration of heat.i Additionally, we examine how historic federal support for innovation in the oil and gas industry can provide a roadmap to ensuring the potential of geothermal energy can be fully realized.
The U.S. government can take several strategic actions to support the development of next-generation geothermal. These actions include:
continuing funding for research, development, and demonstration of nextgeneration geothermal and novel drilling technologies, and facilitation of knowledge sharing across federally funded projects
cultivating market certainty and demand-side support through durable incentives that value clean, firm power and heat, like ensuring existing clean-energy tax credits are retained
de-risking geothermal development through federal loans, loan guarantees, and lending support mechanisms for early phases of project development
reforming the permitting process on federal lands to reduce project uncertainty and timelines
leveraging and optimizing existing federal financing tools to expand American geothermal companies’ access to domestic and international energy markets.
