Proponents of enhanced geothermal energy are correct that this nascent technology has incredible potential to decarbonize the U.S. energy system. Enhanced geothermal systems (EGS) share drilling technologies with the shale fracking industry, making them a compelling option for policymakers looking to leverage existing American supply chains to drive decarbonization at scale. But the market structures of these two sectors differ significantly. Policymakers interested in supporting rapid EGS deployment should understand these distinctions and respond appropriately rather than expecting a geothermal boom to emerge spontaneously simply because EGS projects rely on an already-proven technology suite.
