.svg){kind=avatar}
As geothermal energy gains momentum as a vital clean energy player, the final challenge is turning potential into reality – scaling it up to mainstream, infrastructure-grade deployment. In Part 1, we explored why geothermal holds such promise for reliable, round-the-clock decarbonization. In Part 2, we examined the innovative technologies unlocking geothermal’s potential, from advanced heat pumps to engineered reservoirs. Now, in this concluding installment, we focus on the path to scale: what it will take to move geothermal from niche deployments to a mainstream energy solution powering communities. From streamlining permits and funding new projects to engaging utilities and retraining workers, a concerted effort is needed to bring geothermal into the energy big leagues. This article dives into the key ingredients for scaling geothermal – and how they align with Energy Capital Ventures’ forward-looking Green Molecules® thesis within the natural gas utility ecosystem.
One of the first hurdles to scaling geothermal is simplifying the permitting process. Geothermal projects often face lengthy, complex approval timelines comparable to (or even more cumbersome than) oil and gas projects. Today’s permitting process can involve duplicative reviews and uncertain timelines that discourage investment. Geothermal industry advocates note that the current approval process is bogged down by duplicative assessments and lengthy, opaque permitting timelines, which hinder efficient planning, financing, and construction of projects. In other words, even when the technology is ready, red tape can stall progress on the ground.
Policymakers are starting to respond. A bipartisan proposal in the U.S. Senate – the Energy Permitting Reform Act of 2024 (EPRA) – specifically targets geothermal barriers with measures to speed up development. For example, EPRA would establish categorical exclusions for low-impact geothermal exploration, require annual federal geothermal lease sales, set deadlines for processing drilling permits, and even allow concurrent review of multiple project phases. Reforms like these aim to treat geothermal with the urgency afforded to other clean energies, putting it on a faster track. Complementary efforts are unfolding at the state level as well. In fact, eight U.S. states have already passed laws allowing public gas utilities to add geothermal networks to their portfolios, effectively enabling traditional gas companies to become “thermal utilities” that can develop geothermal heating/cooling loops. More states are following suit, recognizing that aligning regulatory frameworks with geothermal’s unique profile is crucial for growth.
Streamlined permitting and supportive policies will not only accelerate project timelines but also unlock financing (more on that next). As the European Geothermal Energy Council observes, the journey from niche to mainstream “demands a robust framework” with effective permitting rules and adequate financial resources as pillars of the transformation. Simply put, clear and efficient permitting de-risks geothermal projects, making them more attractive to investors and utilities eager to build carbon-free infrastructure.
Hand-in-hand with permitting reform comes the need for financing and project demonstration. Geothermal energy has high upfront costs – drilling deep wells or installing networks is capital-intensive – but offers long-term payoff with reliable output. To make geothermal mainstream, stakeholders must bridge this upfront investment gap through creative financing, public-private partnerships, and by proving the economics with successful pilot projects.
Encouragingly, both government and private investors are ramping up support. The U.S. Department of Energy has extended generous tax credits for geothermal projects (thanks to the Inflation Reduction Act) and launched initiatives like the Enhanced Geothermal Shot, which aims to cut the cost of enhanced geothermal systems (EGS) by 90% by 2035. Federally-backed demonstration efforts such as DOE’s Frontier Observatory for Research in Geothermal Energy (FORGE) are tackling technical risks, while states like New Mexico are establishing geothermal development funds and loan programs to spur projects. These moves send a strong market signal: geothermal is a priority for investment in the clean energy transition.
Crucially, recent technology demonstrations have started to erase doubts about geothermal’s scalability. Just last year, a startup called Fervo Energy – backed by Google – announced a breakthrough at its full-scale pilot in Nevada. The project, which uses horizontal drilling and reservoir stimulation techniques from the oil industry, achieved record-setting flow rates over a 30-day test, sustaining 3.5 MW of electricity output from an enhanced geothermal system. This successful pilot confirmed the commercial viability of next-generation EGS technology, marking the most productive enhanced geothermal system in history. Data from the test showed controlled flow in hot rock and helped prove that engineered geothermal can work in diverse locations – effectively anywhere you can drill deep enough.
Such milestones are building confidence among financiers and utilities. Fervo’s CEO even noted that with this proof-of-concept, “no technological barriers to geothermal deployment remain”. While that may be optimistic, the implications are exciting: if engineering hurdles are overcome, the main challenges become scaling up deployment and driving down cost through repetition and learning – challenges that wind and solar famously solved over the past decade. DOE analysts likewise see massive potential – studies suggest geothermal could provide over 20% of America’s electricity needs by 2050 given sufficient investment and supportive policy. In short, the pieces are falling into place for geothermal, but scaling from isolated successes to wide adoption will require concerted financing. Risk-sharing mechanisms (like insurance for drilling projects or loan guarantees) and results from demonstration projects will be vital to attract the big capital needed for geothermal plants and heat networks at scale.
Crews drill boreholes for a first-of-its-kind networked geothermal system in Framingham, MA – a pilot project led by gas utility Eversource to heat and cool dozens of homes via underground pipes instead of natural gas
Making geothermal mainstream will also require active participation from utilities, both electric and gas. Utilities are the incumbents in energy infrastructure – they have capital, customer relationships, and operational expertise to deploy new systems at scale. In the past, geothermal has sometimes been sidelined because it didn’t fit neatly into traditional utility models. That is changing fast, especially in the natural gas utility sector, where companies see geothermal networks as a promising new business model for a carbon-free future.
A groundbreaking pilot in Massachusetts provides a glimpse of this future. In 2024, Eversource, a limited partner of ECV’s Fund I, commissioned the nation’s first utility‑operated “networked geothermal” neighborhood in Framingham, Massachusetts.. In this pilot, instead of distributing gas, the utility installed a network of geothermal boreholes and pipes beneath the street to deliver heating and cooling to 37 buildings (homes and small businesses). Over two years, Eversource will study the feasibility and economics of utility-scale thermal networks in dense neighborhoods. Early signs are encouraging – the system taps the Earth’s stable underground temperature via a one-mile loop, providing efficient warmth in winter and cooling in summer, all while eliminating on-site fossil fuels. Projects like this demonstrate that gas utilities can reinvent themselves as thermal network providers, leveraging geothermal to supply comfortable climates to customers with zero emissions.
Scaling up geothermal is not just about technology and money – it’s also about people and skills. The geothermal sector will need a significant expansion of skilled workers, from drillers and geoscientists to HVAC technicians and energy system designers. Fortunately, much of this talent can be drawn from existing industries. Oil and gas professionals, in particular, have highly transferable skills for geothermal development. Drilling a geothermal well or managing a subsurface reservoir has a lot in common with drilling for oil – except you’re extracting heat instead of hydrocarbons. As geothermal grows, it offers a chance to re-deploy oil and gas workers into the clean energy economy, providing new opportunities for a workforce that might otherwise be left behind in the energy transition. Industry observers note that the sector is already collaborating with the oil & gas industry to re-skill and “up-skill” workers, preparing the next generation of geothermal professionals.
We are seeing early examples of this workforce transition in action. The networked geothermal pilots in Massachusetts explicitly use existing gas utility crews – pipefitters, drillers, and technicians – to build and maintain the loops. In fact, Massachusetts regulators have pointed out that these projects often use the existing pipeline maps and rights-of-way as a guide, and rely on gas company workers who already know how to trench streets and install piping. This significantly lowers labor barriers and costs, while preserving jobs by shifting gas workers to geothermal work. It’s a powerful model of how transitioning to clean energy need not mean leaving behind the skilled tradespeople who kept the old energy system running. Similarly, geothermal power plant development can absorb geothermal drillers, geothermal pump technicians, and other specialists currently working in fossil fuel industries.
Of course, to scale up the workforce, education and training programs will need to grow as well. Apprenticeships for drilling, certifications for geothermal heat pump installation, and university programs in geothermal engineering are all areas ripe for expansion. The good news is that momentum is building: trade organizations and government agencies are beginning to partner on workforce development knowing that a lack of skilled labor could otherwise bottleneck geothermal growth. By investing in human capital now, such as training workers in geothermal skills and easing the transition for fossil fuel industry veterans, we can ensure the manpower needed to build thousands of geothermal projects in the coming decades.
Geothermal energy is often called the “unearthed gem” of the clean energy transition – a resource hiding in plain sight beneath our feet, poised to supply baseload electricity, heating, and cooling with zero carbon emissions. As we conclude this series, it’s clear that the gem is starting to shine. Innovation has addressed many of the technical challenges, policy support is growing, and utilities along with investors are beginning to embrace geothermal’s promise. To truly realize geothermal’s potential, the focus now must be on scaling up deployment: streamlining permits so projects can break ground faster, mobilizing capital and de-risking investments, proving out business models like utility-owned thermal networks, and training an army of workers to literally dig into this opportunity.
The path to scale won’t be without obstacles – infrastructure build-out never is – but the case for geothermal has never been stronger. It uniquely offers what modern energy systems crave: round-the-clock reliability like fossil fuels, but with the clean, renewable nature of wind or solar. Geothermal can fill critical gaps in a decarbonized grid by providing always-on power and flexible heating solutions that complement intermittent renewables. And importantly, it fits naturally within the Green Molecules® vision that Energy Capital Ventures champions – a vision where the natural gas utility ecosystem evolves to deliver green energy molecules and thermal energy in new forms. Geothermal heat may not come in a pipe as a “molecule” the way natural gas does, but it enables gas utilities to supply carbon-free warmth and power by harnessing the earth rather than fossil fuel. In that sense, geothermal becomes an integral part of the green energy portfolio that will drive the next chapter for utilities, investors, and communities alike.
In the coming years, keep an eye on geothermal’s progress. We will likely see more headline-making projects: utility-scale power plants tapping ultra-deep hot rocks, entire neighborhoods heated by networked ground loops, and maybe even abandoned oil wells reborn as geothermal wells. Each success will build momentum, attracting more investment and policy support in a virtuous cycle. If the promise of geothermal is fully realized, we could witness a transformation beneath the surface on par with the shale revolution – but this time in service of clean energy. Achieving that will take continued innovation, patient capital, forward-thinking policy, and collaboration between the gas industry and the geothermal upstarts. The foundation is being laid now. With perseverance, geothermal can move from the fringes to the forefront, powering the future and proving that some of the best solutions to climate change are right under our feet.
