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State utility makes milestone investment in largest power development of its kind in US: 'This isn't a niche energy resource going to a niche use'

"If these purchases help to get this technology off the ground, it could be massively impactful for global decarbonization."

"If these purchases help to get this technology off the ground, it could be massively impactful for global decarbonization."

Photo Credit: Fervo Energy

Although geothermal heat pumps have been gaining popularity in green home construction projects, utility-scale plants have been largely unsung. 

In 2023, geothermal power plants operated in seven states across the U.S., contributing about 0.4% of the country's large-scale electricity generation, according to the U.S. Energy Information Administration. However, the recent upward trend in renewables like solar, wind, and hydro may help push geothermal into the mainstream. 

As the Associated Press reported, Southern California Edison is backing one of the largest geothermal power development projects in recent U.S. history. Fervo Energy is planning to drill up to 125 wells in southwest Utah and aims to provide 400 megawatts of clean energy to the California utility. 

Wilson Ricks, an energy systems researcher at Princeton, shared that this could help reduce costs in the geothermal sector. "If these purchases help to get this technology off the ground, it could be massively impactful for global decarbonization," he said, per the AP article. 

Most geothermal power plants are built near heated reservoirs within a mile or two of the surface. Currently, most of these locations are in the western states, with California blazing the trail and generating two-thirds of all utility-scale U.S. geothermal electricity generation. 

Overall, renewables make up about 21.4% of all utility-scale electricity generation in the U.S. as of 2023, with wind power leading the way and providing 10.2% of the total output. However, solar generation is on the rise and is expected to grow 75% from 2023 to 2025. 

Geothermal energy generation may be having a moment, though. And since it offers 24/7 power output, it makes the perfect complement to solar and wind. 

Innovations are being explored using deep-drilling techniques and subterranean data largely developed by the oil and gas industry, according to Yale Environment 360. 

Some of these include new microwave-emitting drills that can bore deeper into the Earth and fracking-style processes to crack heated rocks and pump in water without causing environmental damage. 

On a more personal scale, geothermal heat pumps can offer long-term energy savings of around $1,500 per year, while the Inflation Reduction Act provides tax credits to Americans upgrading their heating and cooling systems.

California's major geothermal investment marks a big step forward for utility-scale deployment, giving the sustainable power source the street cred it deserves.

Sarah Jewett, Fervo's vice president of strategy, is excited about this high-profile opportunity. As she shared with the AP: "I think that's why it's so exciting. This isn't a niche energy resource going to a niche use. And that is something we have not had, you know, readily available." And it's one that can be scaled up to meet demand.

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