Who Is Really Funding Next-Gen Geothermal in 2026? Next-generation geothermal has moved beyond laboratory research into a capital-intensive commercialization phase. In 2026, the most important financing is no longer coming from one investor category: venture capital funds are financing drilling, subsurface modelling and hardware; strategic energy companies are providing equipment, project access and market credibility; banks are beginning to lend against contracted projects; and governments are absorbing exploration and first-of-a-kind technology risk. The strongest financing activity is concentrated in the United States and Canada, but Europe is becoming increasingly important through Germany-based deployment, European Union grants, UK innovation support, and strategic participation from European energy companies. The central investment question is changing from “Can this technology work?” to “Can the developer deliver repeatable, financeable projects at commercial cost?” The 2026 fun...
Alphaxioms Interview: Doug Copeland
Image: Doug Copeland Created a Transmission Strategy For the Mountain West Geothermal Consortium and also has expertise in Early Stage Development on Site identification based on Land
1. Could you briefly introduce yourself and tell our readers how you became involved in the geothermal industry?
I have spent over 20 years in renewable energy development. My last role before geothermal was helping to set up an offshore wind joint venture and building two teams as we grew from 8 to 250 people. I wanted to stay in renewable energy and see a lot of similarities with geothermal and offshore wind. I started with one consulting client last fall and grew from there.
Over the course of two decades I worked across multiple stages of project development, from early site evaluation and stakeholder engagement to permitting, financing, and construction oversight. That breadth of experience helped me transition smoothly between technologies because many project-development fundamentals overlap even when the resource and technical details differ. My background in team building and scaling operations proved particularly useful, forming effective interdisciplinary teams is often the most important step in moving complex energy projects from ideas into reality.
2. You recently helped develop a transmission strategy for the Mountain West Geothermal Consortium. What were the main objectives of that work, and why is transmission planning so important for geothermal development?
The main objective was to understand the baseline knowledge and expectations of both utilities and developers around interconnection and IRPs. Once we had these details, I provided an internal strategy paper to MWGC that they used to begin their work on this topic knowing the starting point for all parties involved.
Transmission planning matters because generation value isn’t determined by resource quality alone, developers must also be able to get reliable, economic access to customers through the grid. Interconnection timelines, queue management, and how utilities evaluate new resources in their integrated resource plans (IRPs) can significantly change a project’s commercial viability. The strategy paper summarized gaps in communication, highlighted mismatches in expectations (for example around schedule certainty and cost allocation), and proposed pragmatic next steps for aligning developer priorities with utility planning processes. It also recommended stakeholder workshops and targeted data sharing protocols to reduce surprises and accelerate viable projects.
3. You've also worked on identifying geothermal sites based on land availability, permitting, and grid interconnection. What are the biggest challenges developers face during this early-stage process?
The biggest issue is the focus on “best” geothermal resources without focusing on transmission and interconnection timing.
Developers frequently prioritize high heat areas because resource potential is intuitive and often well documented, but they can underestimate how long and costly it can be to secure a grid connection. Early stage site screens should therefore include transmission access metrics, proximity to substations, available capacity, and queue congestion, alongside geological assessments. Permitting complexity and land ownership patterns also introduce variability, even areas with excellent heat can be delayed for years if local permitting regimes are slow or if land use conflicts exist. Equally important is community and stakeholder engagement at the outset, unresolved local concerns can stall permitting and add unexpected costs. In practice, a balanced site selection approach that weights heat, interconnection, permitting pathway, and local acceptance tends to produce more predictable development outcomes.
4. In your opinion, what makes an ideal geothermal project location in the United States today?
No surprises, but heat, transmission, and straightforward permitting regime. The heat and transmission cost balance is the tricky part as developers have realized.
An ideal site combines consistent, measurable subsurface heat with short, cost effective transmission runs to a receptive utility or load center. Predictable permitting and a clear regulatory pathway reduce schedule risk and financing friction. Favorable land tenure, whether public land with streamlined leasing or private land with cooperative owners, also lowers operational uncertainty. Importantly, proximity to existing infrastructure, roads, drill support services, staging areas, reduces logistics costs, especially for drilling intensive phases. Finally, strong early engagement from potential offtakers or utilities that understand geothermal’s operational profile, baseload or dispatchable flexibility, helps secure contracts that reflect the technology’s value beyond simple hourly energy pricing.
5. How has the U.S. geothermal industry evolved over the last few years, and what trends are you most excited about?
I’m seeing more companies focus on interconnection and transmission as they realize that utilities don’t focus on the geoscience or drilling, but care about price and schedule of power delivery.
Historically, geothermal conversations have been dominated by subsurface science, where the heat is and how to retrieve it economically. Recently, the industry’s commercial conversation has broadened, developers increasingly recognize that demonstrating project deliverability to the grid on a utility friendly schedule and cost basis is essential to closing PPAs and winning IRP consideration. I’m excited to see cross disciplinary teams form, combining geoscientists, transmission planners, and utility relations specialists, to craft projects that are technically sound and commercially compelling. Another positive trend is a stronger focus on hybridization, pairing geothermal with storage or other resources, and on policy mechanisms that reward firm, flexible capacity and not just intermittent energy. These shifts should help geothermal compete more effectively in resource procurement processes.
6. Many new geothermal companies are emerging. What advice would you give startups looking to move projects from concept to development?
Development skills, land, outreach, interconnection, and policy skills that you should have in house if you want to get beyond your first project.
Startups often excel at technical innovation but underestimate the importance of development discipline, structured land agreements, consistent stakeholder outreach, and professional interconnection management are recurring differentiators between teams that stall and teams that scale. Building in house capabilities for permitting navigation, community engagement, and policy advocacy reduces dependency on external consultants and speeds decision making. If building all capabilities internally isn’t feasible, prioritize hiring or partnering for the interconnection and utility relations roles early, those functions materially influence timelines and investor confidence. Also, document processes and lessons learned from each project so the organization can iterate rapidly and avoid repeating avoidable delays.
7. How important is collaboration between developers, utilities, government agencies, and local communities in accelerating geothermal deployment?
It’s essential and has been crucial to all other types of electricity generation.
Collaboration creates predictable pathways for permitting, grid access, and social license to operate. Utilities can provide clarity on operational requirements and dispatch expectations, government agencies can streamline regulatory processes and provide funding mechanisms, communities deliver the social acceptance that removes political risk. Effective collaboration means shared timelines, transparent data exchange, and joint problem solving forums. When these groups coordinate early, projects are more likely to attract financing, execute on schedule, and deliver durable local benefits.
8. Looking ahead, what opportunities do you see for next-generation geothermal technologies, including Enhanced Geothermal Systems (EGS) and advanced drilling?
The opportunities will depend on how things go through the end of the decade. If multiple projects can come online and show steady production, it will be much easier to find investors and move geothermal out of the science project, early funding stage into typical energy project development.
Demonstration of reliable, commercial scale EGS and advanced drilling enabled projects would de risk the technology for broader capital deployment. Successful track records reduce perceived technical risk, which unlocks larger pools of project finance and infrastructure capital. Improvements in drilling efficiency and subsurface stimulation techniques could expand the geographic footprint of feasible projects beyond traditional high enthalpy regions. Over the next several years, scaling pilot projects into bankable assets and integrating them into merchant and contracted portfolios will be a critical test. If developers can couple robust technical performance with clear interconnection and offtake arrangements, next generation geothermal could shift from niche to mainstream generation.
Are there any lessons from the U.S. geothermal sector that could benefit emerging geothermal markets in Africa and other parts of the world?
I can’t say for sure, but if those countries are looking at their transmission grids, they could consider transmission planning as an essential part of helping the markets grow. It’s not just heat. It’s getting the power to customers.
In many emerging markets the constraint isn’t solely the subsurface resource but the capacity and configuration of the grid to accept and distribute new supply. Early investment in transmission planning, grid reinforcements, and coordinated land use policy can dramatically shorten the time to commercial operation for geothermal projects. Local regulatory certainty, clear permitting timetables, and transparent tendering processes also attract investors. Additionally, capacity building, training local engineers and planners in geothermal project development and grid integration, creates sustainable local ecosystems for project delivery.
Finally, what message would you like to share with the global geothermal community and the readers of Alphaxioms?
It’s a fascinating time in geothermal, but never assume that money and political support will continue to flow your way. The way to keep things going well is to engage with stakeholders early, utilities often, and prepare your customers for a time where they may need to provide public support for this growing industry. And keep finding decent heat.
Continued progress will require disciplined project execution, transparent stakeholder engagement, and sustained demonstration of value to end customers and policy makers. The geothermal community should celebrate technical progress while remaining pragmatic about the commercial and policy work that transforms innovation into deployed capacity. Above all, maintain focus on projects that minimize surprises, align with grid needs, and deliver demonstrable benefits to local communities, those are the projects that will build enduring support and attract long term investment.
Source: Doug Copeland interview, Alphaxioms
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