DOE Launches 13-State Initiative to Put Geothermal Power on the U.S. Grid

By Sarah Chen, Energy Policy Analyst · Published March 25, 2026

The U.S. Department of Energy's Office of Geothermal (OG, formerly the Geothermal Technologies Office) announced in January 2026 a sweeping 13-state initiative to expand the use of "firm, flexible geothermal power" on the U.S. electrical grid. The program supports states interested in developing geothermal power generation nationwide — not just in the traditional Western states where geothermal has historically been concentrated.

This is a big deal. Here's why.

What's Happening

The DOE initiative targets states that have geothermal potential but haven't historically developed it for grid-scale electricity generation. While most of America's ~3.7 GW of installed geothermal capacity sits in California, Nevada, Utah, Oregon, and Hawaii, advances in enhanced geothermal systems (EGS) and next-generation drilling technology are opening up previously inaccessible resources across the country.

The 13-state program will provide technical assistance, resource characterization, and pathways for states to integrate geothermal into their electricity portfolios. This builds on DOE's broader geothermal push, including the $171.5 million funding announcement for next-generation field tests and confirmation drilling released in February 2026.

Why This Matters for the Geothermal Industry

Grid-Scale Geothermal Is Different From Residential

Let's be clear about what this initiative targets. Grid-scale geothermal power plants generate electricity from deep geothermal reservoirs (typically 5,000–15,000+ feet deep) where temperatures reach 300–700°F. This is fundamentally different from residential geothermal heat pumps that use the shallow earth's constant temperature (45–65°F) for home heating and cooling.

But there's a critical connection: a growing grid-scale geothermal industry lifts the entire geothermal sector. More awareness, more workforce development, more drilling companies, and more policy support for geothermal energy at every scale — including the residential heat pump market.

The "Firm and Flexible" Advantage

The DOE specifically describes geothermal as "firm, flexible" power. This language matters:

• Firm = available 24/7, regardless of weather. Unlike solar (daytime only) and wind (intermittent), geothermal plants run continuously with capacity factors typically around 90%. Compare that to solar's ~25% and wind's ~35%.
• Flexible = can ramp up and down to balance grid demand. Next-generation geothermal plants are being designed to complement variable renewables — producing more power when the sun isn't shining and wind isn't blowing.

As states push toward 100% clean electricity goals, they're discovering that solar and wind alone can't get them there. You need firm, dispatchable clean power to fill the gaps. Nuclear takes decades to build. Battery storage handles hours, not days. Geothermal can run for decades with near-zero emissions and no fuel cost volatility.

Which States Are Involved?

The DOE hasn't published the full list of participating states [NV], but based on known geothermal resource assessments and state energy planning documents, the likely candidates include:

[NV] The specific 13 states participating have not been independently confirmed at time of publication. The above is based on DOE resource assessments and public statements.

The Texas and Oklahoma Connection

Perhaps the most intriguing aspect of this initiative is the potential involvement of oil and gas states. Texas and Oklahoma have:

• Thousands of abandoned and marginal oil/gas wells that reach temperatures suitable for geothermal power production
• World-class drilling expertise and infrastructure that transfers directly to geothermal development
• Experienced workforce that can transition from fossil fuel extraction to geothermal
• Supportive geology in some regions (particularly West Texas and the Oklahoma panhandle)

The concept of "co-produced geothermal" — generating electricity from hot water that's already being pumped from oil and gas wells — is particularly promising. It's essentially free energy from a waste stream, requiring minimal additional investment.

Technology Making This Possible

Three technology advances are enabling geothermal expansion beyond traditional hydrothermal hotspots:

Enhanced Geothermal Systems (EGS)

EGS creates geothermal reservoirs in hot dry rock by drilling deep wells, fracturing the rock to create pathways, and circulating water through the fractures to extract heat. The DOE-funded Utah FORGE project and companies like Fervo Energy have demonstrated that EGS works at commercial scale. This transforms geothermal from a "lucky geology" resource into one available nearly anywhere if you drill deep enough.

Next-Generation Drilling

Advances in drill bit technology (including polycrystalline diamond compact bits, as highlighted by DOE in May 2025), millimeter-wave drilling research, and techniques borrowed from the oil and gas industry are driving down the cost of deep geothermal wells. Drilling accounts for 40–60% of geothermal project costs, so even modest cost reductions have enormous impact.

Closed-Loop / Advanced Geothermal Systems

Companies like Eavor Technologies are developing closed-loop geothermal systems that circulate fluid through sealed underground heat exchangers — no fracking, no water consumption, no induced seismicity concerns. These systems can potentially be deployed anywhere with sufficient temperature at depth.

What This Means for Homeowners and the Residential Market

You might be wondering: "I just want a geothermal heat pump for my house. Why should I care about grid-scale power plants?"

Fair question. Here's the connection:

1. Workforce growth — More geothermal activity means more trained drillers, more HVAC technicians familiar with geothermal, and more certified installers in your area. The residential heat pump market's biggest constraint is installer availability. Grid-scale expansion helps.

2. Cost reduction — As drilling technology improves for deep geothermal, the cost curves trickle down to shallow residential loop installations. Better drill bits, faster rigs, and more competition among drillers all reduce the cost of your ground loop.

3. Policy momentum — When the DOE is actively promoting geothermal, state legislatures pay attention. This translates to more state-level incentives, rebates, and permitting streamlining for residential installations. Check your state's current incentives.

4. Public awareness — Every news story about geothermal power puts the technology on more consumers' radars. Awareness drives demand, demand drives installer training, and the cycle accelerates.

5. Cleaner grid — If geothermal power plants displace fossil fuel generators on your state's grid, your geothermal heat pump becomes even greener. A heat pump running on geothermal electricity is about as clean as energy gets.

What to Watch For

• Mid-2026: Expect DOE to announce specific state partnerships and funding allocations under this initiative
• 2026–2027: Resource characterization studies in participating states will identify the best sites for geothermal development
• 2027–2030: First pilot projects and demonstration plants in non-traditional geothermal states
• 2030+: If successful, commercial-scale geothermal power in states that currently have zero geothermal generation

The geothermal industry is at an inflection point similar to where solar was around 2010 — the technology works, costs are falling, and federal support is accelerating deployment. The 13-state initiative is a signal that DOE sees geothermal as a cornerstone of America's clean energy future, not just a niche technology for volcanic regions.

Sources

1. U.S. Department of Energy, Office of Geothermal — 13-State Geothermal Grid Expansion Announcement (January 7, 2026)
2. U.S. Department of Energy — Up to $171.5M Funding Opportunity for Next-Generation Geothermal (February 25, 2026) [NV — URL restructured]
3. U.S. Department of Energy — Office of Geothermal Overview (accessed March 2026)
4. DOE GeoVision Report — "Harnessing the Heat Beneath Our Feet" (2019, updated 2024) — geothermal potential assessment
5. Utah FORGE — DOE-funded Enhanced Geothermal Systems demonstration project
6. U.S. Energy Information Administration — Geothermal electricity generation data (2024)
7. International Renewable Energy Agency (IRENA) — Global geothermal capacity and technology trends
8. National Renewable Energy Laboratory (NREL) — U.S. geothermal resource assessment maps