Tajogaite Energía and INVOLCAN Join Forces to Explore La Palma’s Geothermal Potential Tajogaite Energía S.L. has taken a significant step toward assessing the geothermal potential of La Palma by formalising an agreement with the Canary Islands Volcanological Institute (INVOLCAN). The agreement covers surface geothermal exploration and research across 19 mining grids awarded to the company by the Government of the Canary Islands, with a total value of €387,698.50. The initiative does not yet mean that a geothermal power plant will be built or that deep drilling will begin immediately. Instead, it represents an essential early phase: using advanced scientific methods to understand what lies beneath the island’s surface and identify the areas with the greatest potential for future geothermal development. A Strategic Agreement for Canary Islands Energy The collaboration between Tajogaite Energía S.L. and INVOLCAN forms part of the public tender process launched by the Canary Islands Govern...
BLM’s Nevada Geothermal Lease Auction Signals Rising Competition for Federal Energy Land
The Bureau of Land Management’s latest geothermal lease sale in Nevada attracted nearly $4.83 million in total receipts, highlighting growing investor interest in geothermal resources as electricity demand rises. The auction also exposed an increasingly important land-use conflict: several geothermal parcels overlap with proposed utility-scale solar projects, including NextEra Energy’s 1,000-megawatt Sawtooth Energy Center.
The October 20, 2026, sale offered 83 parcels covering approximately 265,155 acres across 10 Nevada counties. Bidders placed offers on 60 parcels covering 186,641 acres, while 23 parcels received no bids. The results provide a new measure of competition for federal geothermal acreage in one of the United States’ most important geothermal states.
Auction Results
The Nevada auction attracted 32 registered bidders, of which 18 submitted at least one bid. Across the sale, bidders submitted 239 offers, producing a combined total of $4.44 million in high bids and $4.83 million in total receipts.
The difference between high bids and total receipts reflects the way federal lease-sale proceeds are calculated. Total receipts include winning bonus bids, rentals and other fees, while the high-bid figure represents the winning offers themselves. This distinction matters when comparing Nevada’s results with previous BLM auctions or with industry estimates based only on bonus bids.
The sale offered 83 parcels covering 265,154.61 acres. Sixty parcels covering 186,641 acres received bids, while 23 parcels did not sell. The auction had 32 registered bidders, 18 of whom placed offers, and generated 239 total bids. The sum of high bids reached $4,444,112, while total receipts reached $4,829,720. The highest bid was $201 per acre.
The average number of bidders per parcel was 2.08, although competition was uneven. More than one-third of the parcels that sold reportedly received only the minimum price of $2 per acre, showing that enthusiasm for geothermal development remains concentrated in areas with stronger perceived resource or infrastructure potential.
The BLM may issue the leases after completing the required review and receiving payment. Winning a parcel therefore represents an opportunity to explore and potentially develop a geothermal resource, not an immediate authorization to drill or construct a power plant.
Ormat Leads the Bidding
Ormat Technologies emerged as the dominant bidder in the auction. The established geothermal developer won eight parcels covering approximately 20,000 acres for about $2.29 million, accounting for nearly half of the sale’s total high bids.
Ormat also submitted the auction’s highest bid: $201 per acre for a 3,841-acre parcel in White Pine County in eastern Nevada. The bid suggests that the company sees value in securing additional exploration positions in a state where it already owns and operates a significant geothermal portfolio.
Nevada is Ormat’s most important operating base in the United States. The company operates facilities including the McGinness Hills, Beowawe and Steamboat geothermal projects, giving it local experience in resource assessment, drilling, plant development and power-market participation.
That existing position can provide advantages in a lease auction. An incumbent developer may already understand regional geology, transmission constraints, water conditions and permitting requirements. It may also be able to evaluate exploration acreage more efficiently than a new entrant with no local operating history.
However, acquiring a lease does not eliminate geothermal development risk. The winning bidder must still confirm reservoir temperature, permeability, fluid chemistry, flow rates and long-term sustainability. Exploration wells can be expensive, and a parcel that appears promising from regional geological data may not support commercial
Invenergy Expands Its Position
Invenergy was the largest winner by acreage, acquiring nine parcels covering approximately 37,000 acres for $694,947. The Chicago-based energy and infrastructure developer has expanded beyond its traditional wind and solar activities into geothermal and other firm or dispatchable energy technologies.
The company’s participation reflects a broader change in the geothermal market. Historically, federal geothermal leasing was dominated by established specialists and a relatively small group of companies with direct experience in hydrothermal development. Rising demand for reliable low-carbon power is now attracting larger energy developers, infrastructure investors and companies with backgrounds in oil and gas.
Invenergy’s interest may also reflect the value of portfolio flexibility. A geothermal project can complement intermittent wind and solar assets by providing steady output, capacity value and lower dependence on short-term weather conditions. If geothermal technologies improve and drilling costs decline, companies with existing transmission, development and power-purchase expertise could become important participants in the sector.
Glovate LLC was another significant buyer, winning six parcels covering approximately 24,000 acres for $570,601. The participation of newer or less familiar entities illustrates the expanding pool of companies seeking exposure to geothermal resources.
What a Geothermal Lease Allows
A federal geothermal lease gives the holder the right to explore for and develop geothermal resources within the leased area, subject to the terms of the lease and applicable federal laws. The BLM describes competitive geothermal leases as having an initial 10-year period.
The lease is only the first stage in a much longer development process. It does not by itself authorize surface-disturbing exploration, production drilling, transmission construction or commercial generation.
A developer must generally submit additional plans for activities such as:
- Geological and geophysical surveys.
- Temperature-gradient drilling.
- Exploration wells.
- Production and injection wells.
- Gathering systems and pipelines.
- Power plants and associated facilities.
- Roads, substations and transmission connections.
Those proposals undergo additional environmental and regulatory review. The BLM’s planning process considers potential effects on wildlife, water resources, cultural resources, recreation, grazing, mineral development and other land uses.
This distinction has become central to the Nevada dispute. The Interior Department has emphasized that a geothermal lease does not automatically permit construction or physical disturbance. Future exploration and development plans would still need approval and would be evaluated against other projects and resource protections.
Revenue for Nevada Communities
The federal geothermal leasing system distributes proceeds among the federal government, Nevada and the counties where leased parcels are located. For each leased parcel, 50% of the bid, rental receipts and subsequent royalties goes to the state of Nevada, 25% goes to the relevant county and 25% goes to the U.S. Treasury.
The distribution creates a direct fiscal incentive for states and counties to support responsible geothermal development. In Nevada, local governments may benefit from lease payments before a project begins commercial operations, followed by additional revenue if a resource is successfully developed.
The economic effects can extend beyond government receipts. Geothermal projects may create demand for drilling contractors, geological services, electrical equipment, civil construction, operations staff and maintenance providers. They can also strengthen rural economies by adding industrial activity in areas with limited access to large-scale energy investment.
At the same time, development can create competing demands for land, water and infrastructure. Local benefits therefore depend on effective planning, transparent permitting and clear agreements over environmental mitigation.
Solar and Geothermal Land-Use Conflict
The most contentious element of the auction was the overlap between some geothermal parcels and planned solar developments.
NextEra Energy said several parcels covered approximately 6,000 acres, or about 60%, of its proposed 1,000-megawatt Sawtooth Energy Center in Nye County. The company asked the BLM to remove, defer or reconfigure the affected parcels before the sale.
The Sawtooth project is one of several large solar developments planned on federal land in Nevada. Other projects identified in connection with the auction include Leeward Renewable Energy’s Lone Mountain project, Invenergy’s Nivloc project and Arevia Power’s Gold Dust project.
According to maps published during the BLM review, six proposed geothermal parcels overlapped with four major planned solar developments. The overlap illustrates the growing pressure on high-value federal land near transmission infrastructure and energy markets.
The BLM rejected calls to withdraw or postpone the affected acreage, citing its multiple-use mandate for federal lands. Under this approach, public land can support energy development, grazing, recreation, conservation and other uses, provided projects comply with applicable laws and land-management requirements.
The resulting conflict is not necessarily a permanent choice between geothermal and solar. In some areas, the technologies could potentially share infrastructure or be developed sequentially. In others, geothermal wells, roads, pipelines and production facilities could interfere with solar arrays, while solar construction could restrict future geothermal exploration.
The key issue is timing. A lease acquired by one developer can complicate the planning position of another company even before either project reaches construction. This creates uncertainty for developers that have spent years securing rights-of-way, conducting studies and preparing environmental documentation.
Why Overlap Matters
The Nevada dispute demonstrates that energy development is increasingly becoming a competition for location rather than simply a competition between technologies.
A geothermal resource may be valuable because of its geological characteristics, but commercial development also depends on proximity to transmission, substations, roads, water supplies and customers. Solar developers face similar constraints. The most attractive sites are often those that combine strong renewable resources with access to existing or planned transmission capacity.
- Protected habitats and sensitive species.
- Cultural and archaeological resources.
- Military and aviation restrictions.
- Existing mining claims.
- Grazing and recreation.
- Transmission corridors.
- Water availability.
- Previously proposed renewable-energy projects.
As electricity demand rises, these competing claims will become more frequent. Data centers, artificial-intelligence facilities, manufacturing projects and hydrogen developments are increasing demand for new generation and transmission. Both geothermal and solar developers are seeking large federal land positions to serve that growth.
Geothermal’s Strategic Appeal
Geothermal energy has gained new attention because it can produce electricity continuously, unlike variable wind and solar generation. Conventional geothermal plants use naturally occurring underground heat, fluids and permeability. Enhanced geothermal systems seek to expand the resource base by creating or stimulating reservoirs in hot rock.
The sector is also benefiting from the transfer of oil-and-gas drilling expertise. Advances in horizontal drilling, high-temperature tools, well stimulation, subsurface imaging and project management could reduce costs or open resources that were previously considered uneconomic.
Federal lease auctions provide companies with a way to secure prospective acreage before committing larger sums to exploration. The low cost of many leases compared with drilling and plant construction means the auction is an early-stage investment decision. The larger financial risk arrives later, when companies must fund wells and demonstrate commercial flow rates.
The market’s interest is partly connected to the need for firm clean power. Utilities and large technology companies are increasingly looking for electricity supplies that can operate around the clock. Geothermal projects could help meet that demand if developers can deliver competitive costs, reliable output and predictable construction schedules.
The auction took place under a federal policy that has emphasized domestic energy production and expanded resource development. The Interior Department linked the sale to Executive Order 14154, “Unleashing American Energy,” and described geothermal leasing as part of a broader effort to strengthen U.S. energy security and energy dominance.
The administration’s energy policy has also preserved geothermal tax credits while weakening some incentives for wind and solar, according to reporting connected to the auction. This policy environment could improve geothermal’s relative position in federal energy development, particularly for projects seeking firm power or access to federal support.
Policy support, however, cannot resolve the technical and commercial risks of geothermal development. Projects still require successful wells, viable reservoirs, environmental approvals, financing and customers willing to sign long-term power contracts.
The BLM’s decision to proceed with the Nevada sale also signals that federal agencies may prioritize regular leasing as a way to accelerate geothermal exploration. The agency has asked its offices to favor annual sales, even though the law requires a less frequent schedule.
A more predictable leasing calendar could help developers build project pipelines and plan exploration budgets. It could also increase competition for land and make early coordination between geothermal, solar, transmission and conservation stakeholders more important.
Investment Signals from the Sale
The auction sends several signals to geothermal investors.
First, competition for federal acreage is increasing. Thirty-two registered bidders and 239 total bids represent a much more active market than the historically quiet federal geothermal auctions in which many parcels sold at minimum prices.
Second, established developers are willing to pay meaningful premiums for selected acreage. Ormat’s $201-per-acre winning bid was more than 100 times the federal minimum price, suggesting that some parcels were viewed as strategically important.
Third, acreage accumulation is becoming a major competitive strategy. Invenergy’s acquisition of approximately 37,000 acres gives it a large exploration position, although the size of a lease portfolio does not guarantee commercial success.
Fourth, companies may be valuing land for more than geothermal potential. A parcel can provide optionality around future power demand, transmission access, technology improvements and partnerships. This is particularly relevant as closed-loop geothermal, enhanced geothermal systems and advanced drilling concepts seek to expand the number of locations suitable for development.
Finally, the sale confirms that geothermal is moving closer to mainstream infrastructure investment. Participation from large energy developers indicates that the sector is no longer viewed solely as a niche opportunity for specialist operators.
The $4.83 million result should not be interpreted as $4.83 million of geothermal project investment. Most of the money represents lease-related payments, while the larger costs of exploration, drilling and construction remain ahead.
Several risks could reduce the value of the acquired acreage:
- The geothermal resource may be too cool or insufficiently permeable.
- Wells may fail to produce commercial flow rates.
- Drilling costs may exceed project assumptions.
- Transmission capacity may be unavailable.
- Water or environmental constraints may restrict development.
- Power prices may not support the required investment.
- Competing land uses may delay or reshape project plans.
- Environmental reviews may impose costly mitigation measures.
- Financing conditions may change before construction begins.
The lease-sale process transfers some uncertainty from the public sector to private developers, but it does not guarantee that resources will be developed. Parcels that receive bids today may remain undeveloped for years or may ultimately be relinquished.
The Next Phase
The next phase will involve lease issuance, payment verification, exploration planning and coordination with other federal land users. Successful bidders will need to demonstrate that their projects can coexist with wildlife protections, cultural-resource requirements, transmission corridors and existing renewable-energy proposals.
For the parcels overlapping the Sawtooth project and other solar developments, the issue may move from the auction stage to project-by-project planning. A geothermal lease gives the holder a development position, but future approvals will determine how much of that position can be used and under what conditions.
The BLM’s Nevada sale therefore represents more than a routine land auction. It shows that geothermal has become a serious competitor for prime renewable-energy real estate, while also revealing the planning challenges created by rapidly expanding demand for low-carbon electricity.
Nevada remains one of the United States’ most important geothermal markets, but its next wave of development will depend on more than resource quality. Companies will need to secure transmission, manage drilling risk, navigate environmental review and coordinate with other energy developers competing for the same federal landscape.
The auction’s outcome is a clear sign that geothermal interest is accelerating. It is also a reminder that America’s clean-energy transition will require better coordination over land, infrastructure and permitting if multiple technologies are to grow without creating avoidable conflicts.
Source: Energy News
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