Western U.S. Home to Most Geothermal Power, Other Opportunities

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Written by Paul Wiseman for IIR News Intelligence (Sugar Land, Texas)

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Summary

The 2025 U.S. Geothermal Market Report says future growth could be in untapped areas. The report was issued Thursday by the U.S. Department of Energy's Office of Geothermal and the National Laboratory of the Rockies.

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Geothermal Grows 8% Since 2021

Geothermal power's installed nameplate capacity in 2024, 3,969 gigawatts-electric (GWe), was 8% greater than the 3,6773 GWe reported in 2020. That's the finding of the "2025 U.S. Geothermal Market Report," issued by the DOE's Office of Geothermal and the National Laboratory of the Rockies (NLR, formerly the National Renewable Energy Lab). The previous geothermal report came out in 2021.

The net increase came from 246 megawatts-electric (MWe) of new installations, along with some plant expansions, while subtracting 82 Mwe of plant retirements between 2020 and June 1, 2024.

Two operators, Ormat and Calpine, account for 69% of U.S. power plant capacity and 61% of all operating geothermal plants, said the report. Industrial Info is tracking 146 operating geothermal units and 112 in various stages of planning. Of those currently operating, 89 are owned by Ormat, including those owned by its subsidiary Mammoth Pacific, and 16 belong to Calpine.

Geothermal's main draw is that, among clean power options, it alone provides baseline power without creating toxic waste (nuclear) or building major dams (hydropower). Should new technology become more economic, it adds the option of being available almost everywhere in a relatively small surface footprint.

How the West Has Won

Anyone who has visited Yellowstone (the national park, not the TV series) has experienced some of the west's geothermal activity, in what's called a Known Geothermal Resource Area.

Fellow westerners California (53 plants and 73% of U.S. total installed nameplate capacity) and Nevada (32 plants) host the vast majority of U.S. geothermal power plants.

Oregon, Utah, Alaska, Hawai'i, New Mexico and Idaho round out the list of geothermal power states.

Industrial Info is tracking more than $6 billion worth of geothermal-related projects in these states. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more from a detailed list of project reports.

By the Numbers

• 3,969 GWe: Amount of nameplate geothermal power in 2024
• 8%: Amount of growth that represents between 2021 and 2024
• 29: Number of states offering incentives to geothermal development
• 61%: Share of geothermal plants owned by Ormat and Calpine

More Buried Treasure

Several factors have encouraged the 8% growth, and they could open more doors. New technologies and a rise in power purchase agreements (PPAs), motivated in large part by the California Public Utilities Commission's (CPUC) 2021 procurement order, are among those factors.

Since the 2021 report, utilities have added 26 such PPAs, spurring developers to add 1.6 GWe of new capacity developments for the near term.

New geothermal technology is spurring some of the interest, said the report. What it called "next-generation geothermal" accounts for 60% of geothermal PPAs signed between 2021 and July 2025. It defines next generation as that which can access geothermal in low to ultra-low permeability formations (as opposed to the geysers, which operate in high-permeability areas), which can expand its location options.

Next-generation includes closed-loop geothermal (CLG) and enhanced geothermal systems (EGS).

Location, Location, Location

There's plenty of potential out there, but how much is economically feasible is the question. NLR analysis shows the EGS potential to be 27 to 57 terawatt hours (TWe) accessible within 1 to 7 kilometers depth across the U.S. About 4.35 TWe of that is under Bureau of Land Management and National Forest Service land.

But there's a catch. "Further analysis of these results indicates a smaller amount of resource potential that is considered economically developable, including 1.1% (47.8 GWe) of EGS resources," the report said.

Still, those challenges may be on the way to solution. The report quotes studies showing both EGS and CLG may be moving toward economic viability, and that progress is opening the eyes and pocketbooks of investors.

Investment Grows

Top developers of those next-generation systems have raised more than $1.5 billion in private capital since 2021. Fervo Energy ($642 million) and Eavor ($387 million) also have raised large amounts of equity investments.

And 29 states are on board, offering incentives such as grants, rebates, tax incentives and other enticements. The report adds: "A total of 17 states and D.C. have policies that encourage geothermal electricity production, including tax credits. Furthermore, 42 states and D.C. have existing regulatory policies that include geothermal power, which include energy and efficiency standards, net metering, and/or interconnection standards."

IIR News will continue to track existing systems, as well as those in development.

Key Takeaways

• Currently almost all geothermal nameplate power is concentrated in the west, where it is most economically feasible due to porous formations that provide relatively easy access.
• But with billions of dollars of investment in new technologies accessing more regions, geothermal may be set to grow beyond the 8% expansion it showed between 2021 and 2024.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 250,000 current and future projects worth $30.2 trillion (USD).