The Overlooked Backbone of America’s Energy Future: Geothermal and Hydropower

Introduction to Energy Concerns

In the ongoing conversations surrounding renewable energy legislation, two critical players often fade into the background: geothermal energy and hydropower. Both have been pivotal in our energy landscape, yet they continue to be overlooked in federal energy discussions. President Trump’s recent comments on the version of “The One Big Beautiful Bill” underscore a growing concern—not just about the specifics of legislation, but about the broader implications for a clean and reliable energy future.

The Current State of Hydropower

Hydropower stands as one of America’s oldest and most reliable sources of renewable energy, supplying electricity to an estimated 25 million Americans. With 40% of the non-federal hydropower fleet up for relicensing, there’s an urgent need for legislative support. As rates of voluntary license surrender increase, the risk becomes palpable. These facilities provide essential services to the grid, including the ability to “black start,” a critical function when the grid goes offline.

But the potential of hydropower extends beyond just electricity generation. It is a major contributor to grid stability and resilience, especially during times of extreme weather or unexpected cyber threats. However, in the current House version of the budget bill, hydropower’s unique contributions are underappreciated and inadequately supported.

The Rise of Geothermal Energy

Geothermal energy, once considered a niche, has now evolved into a robust pillar of American energy resilience. With systems operating in all 50 states and over 3,700 MW generated from about 93 geothermal power plants, the potential for growth is immense. Innovative technologies are continually expanding the deployment capabilities of geothermal energy, potentially tapping into over 5,000 GW of heat energy beneath the earth’s surface.

One of the most remarkable benefits of geothermal energy is its multi-use applications. Not only can it generate 24/7 clean electricity, but it also provides thermal energy for heating and cooling, significantly reducing the nation’s dependence on foreign energy supplies. This localized energy source not only enhances grid security but also contributes to domestic mineral production, with the potential for extracting valuable resources like lithium from geothermal brines.

Legislative Oversights and Implications

Despite their significance, both hydropower and geothermal have faced setbacks in recent legislative efforts. The current budget bill’s provisions pose critical hurdles—overlooking the multi-year permitting processes essential for the development of these resources, and restricting access to tax incentives that are vital for ongoing projects.

These legislative challenges come at a time when investment in renewable energy solutions must be prioritized. The current approach risks sidelining large-scale geothermal and hydropower projects crucial for meeting the nation’s clean energy goals. By abruptly repealing transferability of tax credits and imposing complex burdens through newly introduced Foreign Entities of Concern provisions, the bill inadvertently complicates the landscape for American industries striving towards energy independence and sustainability.

Proposed Reforms for the Senate

The Senate has a unique opportunity to amend these oversights and ensure that hydropower and geothermal are given the attention they deserve. A few key reforms could significantly enhance their viability:

1. Revise Tax Credits: Replace the “placed in service” deadline for tax credits with a “commence construction” standard. This would ensure ongoing projects can proceed without financial setbacks, keeping clean, reliable energy flowing to the grid.

2. Reinstate Transferability of Tax Credits: This crucial financing mechanism must be restored, allowing companies to cluster resources and attract private investment—thereby facilitating deployment of domestically produced energy.

3. Incorporate Support for Dam Safety and Environmental Upgrades: Including the Maintain and Enhance Hydropower and River Restoration bill in reconciliation efforts would encourage necessary safety and infrastructure enhancements at existing hydropower facilities.

Importance of Streamlined Energy Infrastructure

In line with President Trump’s executive orders aimed at reducing regulatory red tape for energy infrastructure, similar measures must be applied to geothermal and hydropower as well. With these sectors providing non-intermittent power sources critical during peak demand, they fill significant gaps in our energy network.

The notion of energy dominance asserted by Trump can only be realized through valuing and investing in these two workhorse technologies. While they may not dominate headlines like their solar and wind counterparts, hydropower and geothermal are quietly propelling America’s economy and enhancing grid stability.

The Strategic Imperative for Investment

Finally, investing in geothermal and hydropower is not merely a policy flip—it’s a strategic imperative for America’s energy future. Leveraging their capabilities is crucial for ensuring resilience against future energy challenges and solidifying the U.S.’s position as a leader in clean energy advancements. The Senate’s next steps can either fortify or dismantle the foundation of energy resilience America desperately needs.

Promoting these technologies aligns not just with environmental goals; it underscores a commitment to energy independence, economic growth, and national security. As discussions evolve, it remains essential to advocate for the silent yet powerful forces of geothermal energy and hydropower in America’s energy narrative.