Geothermal: A Critical Baseload Power Source
Geothermal energy is an abundant, reliable, carbon emissions-free electricity source that can help support increasing demand from economic growth, particularly in the West, while strengthening energy security. With a high capacity factor of about 90%, geothermal power plants provide a steady output of baseload electricity to power large energy customers or support other renewable energy resources.
While the U.S. has significant geothermal potential, the sector faces high upfront capital costs, investment barriers, and technological limitations that federal lawmakers are seeking to address with smart policy solutions.
Snapshot: Recent CEBA Member Company Deals
CEBA member companies procured a record amount of clean firm capacity in 2025, including several geothermal deals — and we expect that momentum to continue. Recent deals include:
Google in Utah and Nevada: Google has supported geothermal development in both states through major power purchase agreements. In September 2026, Fervo Energy announced a 396-megawatt (MW) agreement with Google to support the continued development of an enhanced geothermal project in Utah. Additionally, in February 2026, Ormat Technologies entered into a long-term agreement with NV Energy to provide 150 MW of new geothermal capacity for Google’s operations in Nevada.
Amazon in Nevada: In May 2026, geothermal discovery company Zanskar announced a 20-year power purchase agreement with the utility NV Energy to deliver 100 megawatts (MW) of power for Amazon’s future data center operations in the Reno area.
Meta in New Mexico: In March 2026, geothermal developer XGS Energy and energy technology company Baker Hughes announced a collaboration on a 150-MW project in New Mexico to support Meta’s data centers.
Shell in Utah: In April 2025, geothermal developer Fervo Energy announced the execution of a 15-year power purchase agreement with Shell Energy for 31 MW of power from a Utah-based geothermal plant to serve Shell’s retail customers, beginning in 2026.
Key Legislative Proposals
As electricity demand increases, CEBA’s members are seeking more long-term opportunities to secure reliable power. Implementing smart policies to address the barriers hindering domestic geothermal development is critical to accelerating the sector’s growth. Key bills CEBA endorses:
Geothermal Energy Advancement Act (H.R. 5631): The bipartisan geothermal package includes geothermal-specific permitting and lease sale reforms that were originally introduced in the STEAM Act (H.R. 1077 / S. 456) and the GEO Act (H.R. 301).
Original Sponsor: Rep. Jeff Hurd
CLEAN Act (H.R. 1687): The Committing Leases for Energy Access Now (CLEAN) Act would require Interior to conduct at least one geothermal lease sale per year in each qualifying state and hold a replacement sale if one is canceled or delayed. The bill also establishes review deadlines for drilling permit applications.
Original Sponsors: Reps. Russ Fulcher, Celeste Maloy, and Lauren Boebert
Geo POWER Act (S. 4116 / H.R. 8437): The Geothermal Power Opportunity With Expanded Regions (Geo POWER) Act is a bipartisan bill that would expand next-generation geothermal demonstration projects across new regions of the United States. The proposal aims to reduce upfront drilling costs, generate public data to reduce risk for future projects, and use milestone-based financing to advance geothermal innovation.
Original Sponsors: Sens. John Hickenlooper, Steve Daines, Alex Padilla, and John Curtis / Reps. Nick Begich and Susie Lee
Contact: Rich England, 339-298-1066 or rengland@ceba.org
The Corporate Energy Buyers Association (CEBA) is a business association that activates energy buyers and their partners to drive low-cost, reliable, carbon emissions-free global electricity systems. CEBA represents about 300 members with $40 trillion in market value, including energy customers of all sizes, suppliers, and service providers. Learn more at ceba.org and follow us on X and LinkedIn.