You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
Local governments once fought the adoption of wireless communications technology. Then Congress did something.

The landmark Inflation Reduction Act invested some $370 billion toward transitioning the United States to a clean energy economy. Yet turning that spending into actual new energy facilities – getting turbines in the air, and solar arrays on the ground – is another matter.
How many facilities materialize, and how quickly, will hinge on countless permitting processes carried out in cities and towns around the country. And at the hyper-local level, renewable energy developers often meet resistance and drawn-out processes.
If left unchecked, NIMBYism could effectively veto much of the IRA, one project at a time. But fortunately, Congress has a ready-made model to defend their investment: a Clinton-era law that helped bring cellphones to more Americans by partially insulating wireless infrastructure from local resistance. We can do the same thing to ensure that the renewable energy transition is not stonewalled on the ground.
Back in the 1990s, NIMBY opposition was hampering the adoption of then-novel wireless communications technology. Local zoning boards frequently enacted moratoria on new wireless towers, and opponents spread unsubstantiated myths about health risks and complained that the towers were eyesores. This often prevented (or at least delayed) the construction of new towers, which slowed the deployment of cellphone technology. For example, in Georgia, a county commissioner said, “By and large, the towers are ugly, and people don’t want them in their backyards. If folks would stay off their cell phones there would be no need for the towers.” Medina, Washington was one of many cities that enacted multiple moratoria on new cell tower citing; a leading opponent of the cell towers there said, “People are willing to not use their cell phones for three blocks on their way to the grocery store, if that means not having the towers here.”
Rather than let NIMBYism hold back progress, Congress took action. The Telecommunications Act of 1996 passed with overwhelming bipartisan support to “encourage the rapid deployment of new telecommunications technology.” The TCA struck a balance on local permitting and siting: it preserved “the traditional authority of state and local governments to regulate the location, construction, and modification” of wireless towers, but crafted limits on that authority. Under the TCA, local governments can no longer impose regulations tantamount to bans on cell towers. They must issue decisions on proposed towers within a reasonable time, and must support those decisions with “substantial evidence” – in writing. And they cannot turn away projects on the basis of debunked health fears. If a town violates these rules, telecom companies can get an expedited hearing in court.
Congress aimed to let local communities continue to have some say over cell tower siting, but added guardrails to ensure that they couldn’t undermine national imperatives. As Republican Congressman Thomas Bliley, chair of the House Committee on Energy and Commerce, put it at the time: “Nothing is in this bill that prevents a locality … from determining where a cellular pole should be located, but we do want to make sure that this technology is available across the country, that we do not allow a community to say we are not going to have any cellular pole in our locality.”
The TCA paved the way for greater adoption of modern telecommunications technology. Before the law, there were roughly 20,000 wireless towers in the United States and 30 million cellphone users. Six years later, there were nearly 130,000 towers and 130 million users. The TCA continues to reap dividends, such as by neutralizing some of the resistance to the 5G rollout. In 2018, the Federal Communications Commission adopted rules under the TCA to limit the power of localities to obstruct new 5G facilities, constraining the power of cities and towns to block the new sites.
Just as the TCA’s siting rules have helped support the expansion of cellphone networks in the United States, a similar policy could support the expansion of renewable energy. Local permitting has increasingly become a bottleneck for our clean-energy transition. As the Idaho Capital Sun recently observed: “Across the country — from suburban Virginia, rural Michigan, southern Tennessee and the sugar cane fields of Louisiana to the coasts of Maine and New Jersey and the deserts of Nevada — new renewable energy development has drawn heated opposition that has birthed, in many cases, bans, moratoriums and other restrictions[,]” with new wind and solar developments “igniting fierce battles over property rights, loss of farmland, climate change, aesthetics, the merits of renewable power and a host of other concerns.”
A report last year from Columbia University's Sabin Center on Climate Change Law identified 121 local policies restricting renewables development across 31 states, and more than 200 renewables projects challenged across the country – and those numbers are undercounts, according to the Center’s Matthew Eisenson. Common local tactics, the report found, “include moratoria on wind or solar energy development; outright bans on wind or solar energy development; regulations that are so restrictive that they can act as de facto bans on wind or solar energy development; and zoning amendments that are designed to block a specific proposed project.” These local restrictions have been fueled in part by misinformation spread on social media promoting unsupported health and safety concerns around wind and solar farms. Sometimes these groups are literally bankrolled by the oil industry trying to curb the transition from fossil fuels.
Congress could step in to limit localities’ power to obstruct clean energy. Patricia Salkin and Ashira Pelman Ostrow, legal scholars at Albany Law School and Hofstra University, proposed a new legal framework modeled off of the TCA that would outlaw bans and indefinite moratoria on new wind farms, require reasonably fast decisions that are issued in writing and backed by substantial evidence, and create a judicial right of action for wind developers to challenge permitting denials. This would speed up the siting process, and force localities to keep their doors open to renewable energy. And it would incentivize more localities to grant wind citing requests by imposing litigation risk on decisions denying projects.
This framework could provide the foundation for a new Renewable Energy Siting Act – one that, unlike some other permitting reform proposals, would streamline the process for approving renewables only, without sacrificing community protections against fossil fuels. It could also be strengthened. For one, it should apply to other forms of clean energy beyond wind, including solar. The timeline for issuing a decision on a project could be specified at a fixed deadline, like 90 days.
The “substantial evidence” standard could also be bolstered to exclude common NIMBY complaints. In a 2015 Supreme Court case involving the TCA, at least one Supreme Court justice – Justice Alito – said that a permitting decision rejecting a cell tower based solely on aesthetics or community compatibility would count as “substantial evidence.” In adapting the TCA model for renewable energy, Congress should require permitting decisions to be supported by evidence that is both substantial and credible. As it did for fears over radiofrequency emissions from cell towers, Congress could explicitly rule out certain disproven or baseless objections around health, safety, and aesthetics.
Congress could also crack down on extreme and prohibitive “setbacks” – the distance that a structure must be from any neighboring properties – that some states and municipalities impose on renewable facilities. In Ohio, wind turbines must be built at least 1,125 feet from the nearest property line. (Meanwhile, the state allows new oil and gas wells just 100 feet from homes.) That has made new wind development in the state a practical impossibility. Congress could let states and localities take reasonable precautions to protect nearby properties (in the unlikely event that a turbine falls over), while setting a maximum setback rule at perhaps 1.5 times the turbine’s height – a setback of around 450 feet for a typical utility-scale tower.
By design, this approach protects national goals while preserving a role for state and local governments. Though given the climate stakes and the federal dollars at risk, some might understandably want to hand more permitting authority to national agencies. But that risks provoking a backlash, and may also lead federal authorities to miss legitimate local concerns. Putting the federal government in charge of permitting and siting decisions could also trigger federal environmental review under the National Environmental Policy Act and other laws, further slowing deployment.
Though without a new law from Congress reining in local permitting, the Biden administration may have little choice but to resort to targeting specific projects to speed them up. Existing authority under the Defense Production Act allows the federal government to override other laws – including permitting laws – to expedite renewable energy development. The administration has also reportedly started leveraging certain grants to reward states and localities that agree to streamline permitting for projects receiving federal funding. Similar conditions could be attached to some Inflation Reduction Act funding too.
With the House under Republican control, the odds of congressional action seem admittedly slim. But red states and conservative districts stand to benefit mightily from IRA spending given the geographic skew of wind and solar energy toward rural areas in the middle of the country. And providing more national uniformity in permitting processes is fundamentally a pro-business, deregulatory act that will provide more certainty to energy developers. Perhaps those dynamics can produce a bipartisan coalition for congressional action like the one that enacted the TCA.
As we build our way out of the climate crisis, local communities deserve a say in how and where we build, but not a veto. With the climate clock ticking, we can ill afford to run out that clock with undue delays and frivolous objections. Congress can strike the right balance here, and help clean energy proliferate just as quickly as cellphones did.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Cities across the state are adopting building codes that heavily incentivize homeowners to make the switch.
A quiet revolution in California’s building codes could turn many of the state’s summer-only air conditioners into all-season heat pumps.
Over the past few months, 12 California cities have adopted rules that strongly incentivize homeowners who are installing central air conditioning or replacing broken AC systems to get energy-efficient heat pumps that provide both heating and cooling. Households with separate natural gas or propane furnaces will be allowed to retain and use them, but the rules require that the heat pump becomes the primary heating system, with the furnace providing backup heat only on especially cold days, reducing fossil fuel use.
These “AC2HP” rules, as proponents call them, were included in a routine update of California building codes in 2024. Rather than make it mandatory, regulators put the heat pump rule in a package of “stretch codes” that cities could adopt as they saw fit. Moreno Valley, a city in Riverside County, east of Los Angeles, was the first to pass an ordinance adopting the AC2HP code back in August. A steady stream of cities have followed, with Los Gatos and Portola Valley joining the party just last week. Dylan Plummer, a campaign advisor for Sierra Club's Building Electrification Campaign, expects more will follow in the months to come — “conversations are moving” in Los Angeles and Sacramento, as well, he told me.
“This is a consumer protection and climate policy in one,” he said. As California gets hotter, more households in the state are getting air conditioners for the first time. “Every time a household installs a one-way AC unit, it’s a missed opportunity to install a heat pump and seamlessly equip homes with zero-emission heating.”
This policy domino effect is not unlike what happened in California after the city of Berkeley passed an ordinance in 2019 that would have prohibited new buildings from installing natural gas. The Sierra Club and other environmental groups helped lead more than 70 cities to follow in Berkeley’s footsteps. Ultimately, a federal court overturned Berkeley’s ordinance, finding that it violated a law giving the federal government authority over appliance energy usage. Many of the other cities have since suspended their gas bans.
Since then, however, California has adopted state-wide energy codes that strongly encourage new buildings to be all-electric anyway. In 2023, more than 70% of requests for service lines from developers to Pacific Gas & Electric, the biggest utility in the state, were for new all-electric buildings. The AC2HP codes tackle the other half of the equation — decarbonizing existing buildings.
A coalition of environmental groups including the Sierra Club, Earthjustice, and the Building Decarbonization Coalition are working to seed AC2HP rules throughout the state, although it may not be easy as cost-of-living concerns grow more politically charged.
Even in some of the cities that have adopted the code, members of the public worried about the expense. In Moreno Valley, for instance, a comparatively low-income community, six out of the seven locals who spoke on the measure at a meeting in August urged elected officials to reject it, and not just because of cost — some were also skeptical of the technology.
In Glendale, a suburb of Los Angeles which has more socioeconomic diversity, all four commenters who spoke also urged the council to reject the measure. In addition to cost concerns, they questioned why the city would rush to do something like this when the state didn’t make it mandatory, arguing that the council should have held a full public hearing on the change.
In Menlo Park, on the other hand, which is a wealthy Silicon Valley suburb, all five speakers were in support of the measure, although each of them was affiliated with an environmental group.
Heat pumps are more expensive than air conditioners by a couple of thousands of dollars, depending on the model. With state and local incentives, the upfront cost can often be comparable. When you take into account the fact that you’re moving from using two appliances for heating and cooling to one, the equipment tends to be cheaper in the long run.
The impacts of heat pumps on energy bills are more complicated. Heat pumps are almost always cheaper to operate in the winter than furnaces that use propane or electric resistance. Compared to natural gas heating, though, it mostly depends on the relative cost of gas versus electricity. Low-income customers in California have access to lower electricity rates that make heat pumps more likely to pencil out. The state also recently implemented a new electricity rate scheme that will see utilities charge customers higher fixed fees and lower rates per kilowatt-hour of electricity used, which may also help heat pump economics.
Matthew Vespa, an senior attorney at Earthjustice described the AC2HP policy as a way to help customers “hedge against gas rates going up,” noting that gas prices are likely to rise as the U.S. exports more of the fuel as liquified natural gas, and also as gas companies lose customers. “It’s really a small incremental cost to getting an AC replaced with a lot of potential benefits.”
The AC2HP idea dates back to a 2021 Twitter thread by Nate Adams, a heat pump installer who goes by the handle “Nate the House Whisperer.” Adams proposed that the federal government should pay manufacturers to stop producing air conditioners and only produce heat pumps. Central heat pumps are exactly the same as air conditioners, except they provide heating in addition to cooling thanks to “a few valves or ~$100-300 in parts,” Adam said at the time.
The problem is, most homeowners and installers are either unfamiliar with the technology or skeptical of it. While heat pumps have been around for decades and are widespread in other parts of the world, especially in Asia, they have been slower to take off in the United States. One reason is the common misconception that they don’t work as well as furnaces for heating. Part of the issue is also that furnaces themselves are less expensive, so heat pumps are a tougher sell in the moment when someone’s furnace has broken down. Adams’ policy pitch would have given people no choice but to start installing heat pumps — even if they didn’t use them for heating — getting a key decarbonization technology into homes faster than any rebate or consumer incentive could, and getting the market better acquainted with the tech.
The idea gained traction quickly. An energy efficiency research and advocacy organization called CLASP published a series of reports looking at the potential cost and benefits, and a manufacturer-focused heat pump tax credit even made its way into a bill proposal from Senator Amy Klobuchar in the runup to the 2022 Inflation Reduction Act. While rules that target California homeowners obviously won’t have the nation-wide effect that Adams’ would have, they still have the potential to send a strong market signal, considering California is the fifth largest economy in the world.
The AC2HP codes, which start going into effect next year, will help smooth the road to another set of building electrification rules that will apply in some parts of the state beginning in 2029. At that point, households in the Bay Area will be subject to new air quality standards that require all newly installed heating equipment to be zero-emissions — in other words, if a family’s furnace breaks down, they’ll have to replace it with a heat pump. State regulators are developing similar standards that would apply statewide starting in 2035. The AC2HP rule ensures that if that same family’s air conditioner breaks between now and then, they won’t end up with a new air conditioner, which would eventually become redundant.
The rule is just one of a bunch of new tools cities are using to decarbonize existing buildings. San Francisco, for example, adopted an even stricter building code in September that requires full, whole-home electrification when a building is undergoing a major renovation that includes upgrades to its mechanical systems. Many cities are also adopting an “electrical readiness” code that requires building owners to upgrade their electrical panels and add wiring for electric vehicle charging and induction stoves when they make additions or alterations to an existing building.
To be clear, homeowners in cities with AC2HP laws will not be forced to buy heat pumps. The code permits the installation of an air conditioner, but requires that it be supplemented with efficiency upgrades such as insulating air ducts and attics — which may ultimately be more costly than the heat pump route.
“I don’t think most people understand that these units exist, and they’re kind of plug and play with the AC,” said Vespa.
Current conditions: The Pacific Northwest’s second atmospheric river in a row is set to pour up to 8 inches of rain on Washington and Oregon • A snow storm is dumping up to 6 inches of snow from North Dakota to northern New York • Warm air is blowing northeastward into Central Asia, raising temperatures to nearly 80 degrees Fahrenheit at elevations nearly 2,000 feet above sea level.
Heatmap’s Jael Holzman had a big scoop last night: The three leading Senate Democrats on energy and permitting reform issues are a nay on passing the SPEED Act. In a joint statement shared exclusively with Jael, Senate Energy and Natural Resources ranking member Martin Heinrich, Environment and Public Works ranking member Sheldon Whitehouse, and Hawaii senator Brian Schatz pledged to vote against the bill to overhaul the National Environmental Policy Act unless the legislation is updated to include measures to boost renewable energy and transmission development. “We are committed to streamlining the permitting process — but only if it ensures we can build out transmission and cheap, clean energy. While the SPEED Act does not meet that standard, we will continue working to pass comprehensive permitting reform that takes real steps to bring down electricity costs,” the statement read. To get up to speed on the legislation, read this breakdown from Heatmap’s Emily Pontecorvo.

In June, Heatmap’s Matthew Zeitlin explained how New York State was attempting to overcome the biggest challenge to building a new nuclear plant — its deregulated electricity market — by tasking its state-owned utility with overseeing the project. It’s already begun staffing up for the nuclear project, as I reported in this newsletter. But it’s worth remembering that the New York Power Authority, the second-largest government-controlled utility in the U.S. after the federal Tennessee Valley Authority, gained a new mandate to invest in power plants directly again when the 2023 state budget passed with measures calling for public ownership of renewables. On Tuesday, NYPA’s board of trustees unanimously approved a list of projects in which the utility will take 51% ownership stakes in a bid to hasten construction of large-scale solar, wind, and battery facilities. The combined maximum output of all the projects comes to 5.5 gigawatts, nearly double the original target of 3 gigawatts set in January.
But that’s still about 25% below the 7 gigawatts NYPA outlined in its draft proposal in July. What changed? At a hearing Tuesday morning, NYPA officials described headwinds blowing from three directions: Trump’s phaseout of renewable tax credits, a new transmission study that identified which projects would cost too much to patch onto the grid, and a lack of power purchase agreements from offtakers. One or more of those variables ultimately led private developers to pull out at least 16 projects that NYPA would have co-owned.
Sign up to receive Heatmap AM in your inbox every morning:
During World War II, the Lionel toy train company started making components for warships, the Ford Motor Company produced bomber planes, and the Mattatuck Manufacturing Company known for its upholstery nails switched to churning out cartridge clips for Springfield rifles. In a sign of how severe the shortfall of equipment to generate gas-powered electricity has become, would-be supersonic jet startups are making turbines. While pushing to legalize flights of the supersonic jets his company wants to build, Blake Scholl, the chief executive of Boom Supersonic, said he “kept hearing about how AI companies couldn’t get enough electricity,” and how companies such as ChatGPT-maker OpenAI “were building their own power plants with large arrays of converted jet engines.” In a thread on X, he said that, “under real world conditions, four of our Superpower turbines could do the job of seven legacy units. Without the cooling water required by legacy turbines!”
The gas turbine crisis, as Matthew wrote in September, may be moving into a new phase as industrial giants race to meet the surging demand. In general, investors have rewarded the effort. “But,” as Matthew posed, “what happens when the pressure to build doesn’t come from customers but from competitors?” We may soon find out.
It is, quite literally, the stuff of science fiction, the kind of space-based solar power plant that Isaac Asimov imagined back in 1940. But as Heatmap’s Katie Brigham reported in an exclusive this morning, the space solar company Overview Energy has emerged from stealth, announcing its intention to make satellites that will transmit energy via lasers directly onto Earth’s power grids. The company has raised $20 million in a seed round led by Lowercarbon Capital, Prime Movers Lab, and Engine Ventures, and is now working toward raising a Series A. The way the technology would work is by beaming the solar power to existing utility-scale solar projects. As Katie explained: “The core thesis behind Overview is to allow solar farms to generate power when the sun isn’t shining, turning solar into a firm, 24/7 renewable resource. What’s more, the satellites could direct their energy anywhere in the world, depending on demand. California solar farms, for example, could receive energy in the early morning hours. Then, as the sun rises over the West Coast and sets in Europe, ‘we switch the beam over to Western Europe, Morocco, things in that area, power them through the evening peak,’” Marc Berte, the founder and CEO of Overview Energy, told her. He added: “It hits 10 p.m., 11 p.m., most people are starting to go to bed if it’s a weekday. Demand is going down. But it’s now 3 p.m. in California, so you switch the beam back.”
In bigger fundraising news with more immediate implications for our energy system, next-generation geothermal darling Fervo Energy has raised another $462 million in a Series E round to help push its first power plants over the finish line, as Matthew wrote about this morning.
When Sanae Takaichi became the first Japanese woman to serve as prime minister in October, I told you at the time how she wanted to put surging energy needs ahead of lingering fears from Fukushima by turning the country’s nuclear plants back on and building more reactors. Her focus isn’t just on fission. Japan is “repositioning fusion energy from a distant research objective to an industrial priority,” according to The Fusion Report. And Helical Fusion has emerged as its national champion. The Tokyo-based company has signed the first power purchase agreement in Japan for fusion, a deal with the regional supermarket chain Aoki Super Co. to power some of its 50 stores. The Takaichi administration has signaled plans to increase funding for fusion as the new government looks to hasten its development. While “Japan still trails the U.S. and China in total fusion investment,” the trade newsletter reported, “the policy architecture now exists to close that gap rapidly.”
Another day, another emerging energy or climate technology gets Google’s backing. This morning, the carbon removal startup Ebb inked a deal with Google to suck 3,500 tons of CO2 out of the atmosphere. Ebb’s technology converts carbon dioxide from the air into “safe, durable” bicarbonate in seawater and converting “what has historically been a waste stream into a climate solution,” Ben Tarbell, chief executive of Ebb, said in a statement. “The natural systems in the ocean represent the most powerful and rapidly scalable path to meaningful carbon removal … Our ability to remove CO2 at scale becomes the natural outcome of smart business decisions — a powerful financial incentive that will drive expansion of our technology.”
The Series E round will fund the enhanced geothermal company’s flagship Cape Station project.
The enhanced geothermal company Fervo is raising another $462 million, bringing on new investors in its Series E equity round.
The lead investor is a new one to the company’s books: venture capital firm B Capital, started by Facebook co-founder Eduardo Saverin. Fervo did not disclose a valuation, but Axios reported in March that it had been discussing an IPO in the next year or two at a $2 billion to $4 billion valuation.
Much of the capital will be devoted to further investments in its Cape Station facility in Utah, which is due to start generating 100 megawatts of grid power by the end of 2026. A smaller project in Nevada came online in 2023.
Fervo’s last equity round was early last year, when it raised $255 million led by oil and gas company Devon. It also raised another $206 million this past summer in debt and equity to finance the Cape Station project, specifically, and reported faster, deeper drilling numbers.
“I think putting pedal to the metal is a good way to put it. We are continuing to make progress at Cape station, which is our flagship project in Southwest Utah, and some of the funding will also be used for early stage development at other projects and locations to expand Fervo’s reach across the Western U.S.,” Sarah Jewett, Fervo’s senior vice president of strategy, told me
“Enhanced geothermal” refers to injecting fluid into hot, underground rocks using techniques borrowed from hydraulic fracturing for oil and gas. Along with the geothermal industry as a whole, Fervo has found itself in the sweet spot of energy politics. It can provide power for technology companies with sustainability mandates and states with decarbonization goals because it produces carbon-free electricity. And it can host Republican politicians at its facilities because the power is 24/7 and employs labor and equipment familiar to the oil and gas industry. While the Trump administration has been on a warpath against solar and (especially) wind, geothermal got a shoutout in the White House’s AI Action Report as an electricity source that should be nurtured.
“Being clean and operating around the clock is just a really strong value proposition to the market,” Jewett said. “Utilizing an oil and gas workforce is obviously a big part of that story; developing in rural America to serve grids across the West; producing clean, emissions-free energy. It's just a really nice, well-rounded value proposition that has managed to maintain really strong support across the aisle in Washington despite the administration shift.”
But bipartisan support on its own can’t lead to gigawatts of new, enhanced geothermal powering the American west. For that Fervo, like any venture-backed or startup energy developer, needs project finance, money raised for an individual energy project (like a solar farm or a power plant) that must be matched by predictable, steady cashflows. “That is, obviously the ultimate goal, is to bring the cost of capital down for these projects to what we call the ‘solar standard,’’’ Jewett said, referring to a minimum return to investors of below 10%, which solar projects can finance themselves at.
While solar power at this point is a mature technology using mass-manufactured, standardized parts having very good foreknowledge of where it will be most effective for generating electricity (it’s where the sun shines), enhanced geothermal is riskier, both in finding places to drill and in terms of drilling costs. Project finance investors tend to like what they can easily predict.
“We are well on our way to do it,” Jewett said of bringing down the perceived risk of enhanced geothermal. “This corporate equity helps us build the track record that we need to attract” project finance investors.
Whether enhanced geothermal is price competitive isn’t quite clear: Its levelized cost of energy is estimated to be around twice utility scale solar's, although that metric doesn’t give it credit for geothermal’s greater reliability and lack of dependence on the weather.
While Cape Station itself is currently covered in snow, Jewett said, construction is heating up. The facility has three power plants installed, a substation and transmission and distribution lines starting to be put up, putting the facility in line to start generating power next year, Jewett said.By the time it starts generating power for customers, Fervo hopes to have reduced costs even more.
“Cost reductions happen through learning by doing — doing it over and over and over again. We have now drilled over 30 wells at the Cape Station field and we’re learning over time what works best,” Jewett said.