Build Here: How Targeted State Investment in Geothermal Can Fill California’s Clean Firm Gap

California enjoys some of the best geologic conditions for next-generation geothermal in the nation, and private capital is ready to develop these resources – but only if development risks are lowered. Lack of understanding of the subsurface across many regions of California is one such development risk, and it is a major impediment to in-state project deployment.

California can advance in-state next-generation geothermal by funding a testbed program to drill exploration wells around the state. Investment in this program (with or without developer cost-share) would derisk the subsurface in high-potential geologic regions, crowd in private investment, and help California deploy next-generation geothermal at scale. 

This report examines the potential benefits of a testbed program, including the electricity system and cost impacts of overcoming development barriers and establishing in-state next-generation geothermal industry for California’s clean energy targets. It presents the results of recently released electricity system modeling that examines the benefits of enabling large-scale development of next-generation geothermal technologies in California.