Clean electricity from the Earth: BLM geothermal auction draws strong bids around the Salton Sea
In a sign of rising market confidence, the Bureau of Land Management’s geothermal lease sale on August 27, 2025, drew bids on all 13 parcels — about 23,000 acres largely around the Salton Sea — signaling renewed industry interest.
Key takeaways
- All 13 parcels received bids in the Aug. 27, 2025 BLM lease sale, covering roughly 23,000 acres in the California desert.
- Winning bids varied widely, from $2 to $247 per acre, reflecting differing assessments of site potential and cost.
- 12 parcels are in the Salton Sea Basin, an established geothermal hub with existing infrastructure and high underground temperatures.
- Next-generation drilling and mapping tools are a major factor driving renewed developer interest.
Main story
Auction results and context
On August 27, 2025, the Bureau of Land Management held a geothermal lease sale where all 13 offered parcels drew bids. The parcels total about 23,000 acres, most located in Imperial County’s Salton Sea Basin, with one parcel straddling Modoc and Lassen counties. Industry and reporting note this is the most complete take-up of parcels in nearly a decade, signaling renewed momentum for geothermal development in California’s desert (see Los Angeles Times and Global Renewable News).
Winning bids and market signals
Reported winning bids ranged from $2 to $247 per acre, illustrating mixed views on individual parcel geology, access, and development cost. Observers say the universal bidding indicates developers are optimistic about pairing geothermal’s reliable output with intermittent wind and solar to stabilize the grid (EnergyCentral; Los Angeles Times).
“The full take-up of 13 parcels in one sale has not happened in nearly a decade,” industry observers told reporters, marking what some call a turning point for geothermal in California.
Why this auction matters
The auction’s complete bid coverage is significant because it reflects investor belief in both established and next-generation geothermal technologies. Developers cited improved drilling and resource-mapping tools as key drivers that make deeper or drier resources commercially viable. This shift could expand geothermal deployment beyond traditional fields and help California pursue carbon neutrality goals by 2045 (Los Angeles Times; Clean Air Task Force).
How geothermal electricity works — and how it’s changing
Traditional geothermal taps naturally occurring hot water or steam in shallow reservoirs to spin turbines and produce continuous, zero-carbon electricity. Next-generation geothermal targets deeper or drier rock using advanced drilling and reservoir stimulation, potentially unlocking vast new resources. Analysts point to these technological advances as a major reason developers participated in the BLM sale (Clean Air Task Force; Global Renewable News).
Industry momentum and policy signals
Bids across all parcels indicate rising interest in geothermal near the Salton Sea energy hub. Public incentives, federal research funding, and private capital searching for reliable, dispatchable power are aligning to accelerate activity. The bid range underscores differing risk assessments but overall confidence in long-term demand for firm clean power (EnergyCentral).
Barriers and environmental considerations
Important hurdles remain: permitting and environmental review timelines, the need for exploratory drilling and geologic surveys, grid interconnection challenges, and project financing for long lead times. Locally, near the Salton Sea, concerns include land use, air quality, shoreline change, and management of brine and drilling fluids. These issues can add time and cost, and shape where companies invest (Los Angeles Times; informational briefing on geothermal development and permitting).
What the Salton Sea focus means
Twelve parcels fall within the Salton Sea Basin, an area with existing geothermal plants, pipelines, and a workforce familiar with energy projects. The proximity to Southern California load centers reduces transmission needs and makes development more attractive. That proximity also raises local environmental and community engagement requirements.
Implications for San Diego
Economic: Projects could spur construction and operations jobs and contract opportunities for San Diego-based suppliers and service firms.
Energy & grid: Geothermal’s always-on output can stabilize supply for Southern California, but transmission upgrades and coordination will be required to deliver power to San Diego.
Policy & community: Local leaders will weigh trade-offs among clean-energy development, environmental protection, workforce training, and community benefits. Environmental justice and tribal consultation will be central to project planning.
Next steps and what to watch
- Watch for environmental review filings, exploratory drilling notices, and interconnection applications with state and local agencies.
- Monitor state and federal funding decisions for geothermal research and transmission upgrades that could accelerate development.
- Follow community engagement outcomes in the Salton Sea region, where shoreline and habitat concerns are prominent.
Sources and further reading
- Los Angeles Times: “Heat from the Earth: Bidders vie for geothermal energy rights in the California desert,” Aug. 27, 2025
- EnergyCentral: News: Bidders show interest in geothermal in the California desert
- Global Renewable News: Clean electricity from the earth: Bidders show interest in geothermal in the California desert
- Clean Air Task Force: Unlocking California’s geothermal potential
- Informational briefing on geothermal development and permitting
Reporting from the Salton Sea and review of public lease-sale results and industry analyses.
