Unlocking California’s Geothermal Potential: A Strategic Opportunity for Clean, Firm Power

California is a global leader in climate and clean energy policy. The state has set important clean energy goals and made considerable progress, but must dramatically accelerate its clean energy buildout to meet its long-term targets. Electricity demand is projected to rise substantially through midcentury, driven by electrification of transportation and buildings, an increasing number of extreme weather events induced by climate change, and the potential surge in energy-intensive industries such as data centers. 

Next-generation geothermal energy, which uses the earth’s naturally occurring heat to produce power, is well-positioned to play an important role in California’s clean energy mix. It offers zero-carbon, always-available electricity that supports reliability and reduces dependence on fossil fuels during periods when solar and wind are unavailable. Importantly, geothermal energy is not just theoretically valuable—its growth is already an integral part of California’s energy future.

CATF conducted interviews with key geothermal stakeholders in California to understand their outlook on next-generation geothermal growth in the state and to identify the most significant challenges facing the industry. This report is informed by those interviews and by CATF’s ongoing work advancing policy to support next-generation geothermal energy.