Geothermal has big potential. Here’s how states can help realize it.

Western states are ramping up support for a newer kind of geothermal power that can tap hot rock in more places than traditional geothermal plants, potentially supplying large amounts of round-the-clock clean electricity. A new report from the nonprofit Clean Air Task Force says states still need more coordinated policies before the industry can grow at scale, since high drilling costs, slow returns, and uncertain permitting timelines make these projects hard to finance.

California has pushed utilities to buy power from "clean firm" sources like geothermal, which helped Fervo Energy's Cape Station project in Utah land a deal with Southern California Edison; part of that project is set to come online this fall. Colorado, Nevada, Texas, and other states have passed their own laws to speed permitting, clarify who owns underground geothermal resources, or fund geological surveys that help companies find good drilling sites. States like North Dakota, Arizona, and Washington are also working to make old oil-and-gas geological data easier for developers to use.

None of this changes anything for a homeowner directly — this is about utility-scale power plants, not home heating or cooling systems. But it signals that geothermal electricity could become a bigger part of the power mix in western states in coming years, particularly as demand grows from data centers and electrification. The report's authors note that transmission access remains a major hurdle nationwide, and that no state has yet combined all the policies needed to fully unlock the industry's potential.