Green Light for Geothermal Power

New permitting rules give geothermal energy a boost in the US clean power race

10 Jun 2025

The US government has introduced new permitting rules aimed at speeding up geothermal energy development, marking a policy shift intended to elevate the role of this clean energy source in the national grid.

Under the updated framework, announced by the Department of the Interior on May 29, eligible geothermal projects may now receive permits in as little as 28 days, a sharp reduction from what was often a multi-year process. The rule reclassifies geothermal as a resource of national interest, placing it on par with oil, gas, and critical minerals in terms of regulatory priority.

The change has been welcomed by industry players. Ormat Technologies, a leading geothermal operator, plans to use the expedited process for upcoming projects in Nevada, one of the most geothermally active regions in the US. Fervo Energy, a developer known for using advanced drilling techniques, is also expected to benefit.

“This is a big step forward,” said a spokesperson for Geothermal Rising, the sector’s main trade body. “It finally puts geothermal on equal footing and signals that it’s no longer an overlooked player in the clean energy race.”

Geothermal systems harness underground heat to generate electricity continuously, offering a stable supply of clean power that complements intermittent sources such as wind and solar. Despite these advantages, the technology has seen limited deployment due to high initial costs and a complex federal permitting regime.

The new rule aims to address those hurdles by consolidating federal reviews and removing procedural overlap, while maintaining environmental protections. Officials said public transparency requirements and community engagement standards would remain in place.

The move comes amid broader efforts to diversify the US clean energy portfolio and reduce dependence on fossil fuels. With geothermal now receiving federal support comparable to other strategic resources, investors are taking renewed interest in the sector’s potential to provide consistent, emissions-free power.

The revised permitting pathway is expected to encourage greater private sector participation, accelerate deployment, and improve integration of geothermal into a grid increasingly reliant on renewable energy.