What Makes Geothermal Energy So Special?

The article discusses the rising prominence of geothermal energy within the context of the recent “American Energy Dominance” policy, which primarily supports fossil fuels and nuclear power while limiting federal backing for wind and solar energy. Geothermal energy stands out because it can provide reliable baseload power—continuous electricity generation regardless of weather—putting it in direct competition with coal and natural gas. Unlike biomass and hydropower, which have geographic and resource limitations, geothermal energy’s potential is expanding due to innovative technologies such as enhanced geothermal systems (EGS) and advanced closed-loop systems (ACLs). These advances, combined with improved drilling techniques and data analytics, are unlocking vast geothermal resources beyond traditional Western US sites, with estimates suggesting up to 90 gigawatts of geothermal power could be harnessed nationwide by 2050. Despite the policy support, the geothermal industry has faced challenges in securing favorable tax treatment and navigating regulatory hurdles. Early versions of tax legislation threatened to impose restrictive deadlines and reduce incentives, but industry advocacy