The US government will no longer pay geothermal energy companies extra cash for hitting production targets
What happened
The US Land Management Bureau is ending a program that paid geothermal energy companies extra money for producing power. This means geothermal projects will no longer receive federal bonuses for meeting certain production levels.
Why it matters
For years, the US government offered financial incentives to encourage geothermal energy production. Removing these incentives means that future geothermal projects will rely solely on market prices and other existing subsidies, without the added boost from these specific production bonuses. This could make some projects less attractive to investors.
The signal
Watch for any announcements of new geothermal projects or cancellations of planned projects in the next 12-24 months, especially those that might have relied on these incentives.