Comprehensive Representation In The Field Of Energy Law

The first major Texas geothermal electric project moves forward

On Behalf of | Aug 19, 2024 | Energy Law |

Texas has become a power player in the domestic energy economy. The state has long seen oil and gas companies contribute substantially to the overall economy. Texas’ large-scale extraction and refining efforts and exports large amounts of fossil fuels to other states.

There has also been a significant expansion of renewable energy production in Texas in recent years. Wind farms and solar electric projects have become increasingly popular as electrical supply companies seek to diversify power sources and local businesses step into a potentially profitable market niche.

Another source of renewable energy that has drawn a lot of attention in Texas recently is geothermal power. Geothermal power involves using subterranean resources to produce electrical supply. The first large-scale geothermal project in Texas is now underway and may serve as the inspiration for other corporate geothermal projects in the future.

What this trailblazing project entails

San Miguel Electric Cooperative recently announced a plan shared with Sage Geosystems. The project proposes to store energy in the earth and turbines to preserve wind and solar power for use in times of high demand and lower production.

It can also help demonstrate to regulatory officials, prospective investors and other companies that the technology needed for viable large-scale geothermal projects already exists. Many writers covering this project have highlighted how a coal-burning power plant is the home base for the groundbreaking geothermal project underway south of San Antonio.

Why geothermal is so promising

Texas is home to the exact types of subterranean systems that are necessary for extensive geothermal projects. There is also sufficient infrastructure already in place for mining and drilling activities needed to develop geothermal projects.

Unlike wind and solar electricity, which are unpredictable and somewhat sporadic, geothermal energy is available on demand with the right systems. The initial investment for geothermal projects can be substantial, but the long-term return on that investment could be equally significant. This project could help overcome challenges related to the regular decline in solar production later in the day when energy demands can still be high.

Businesses looking to diversify their revenue streams may want to look into geothermal energy production as one option. As the demand for electricity and renewable power in particular increases, geothermal production could transform the economic and energy landscape across Texas.

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