The Trump administration is set to auction geothermal leases on desert land in Nevada that solar developers have been eyeing for their projects. This decision comes as significant concern for developers like NextEra Energy, which has requested the Bureau of Land Management (BLM) to “remove, defer, or reconfigure” three parcels encompassing about 60 percent of its planned 1,000-megawatt Sawtooth solar project in Nye County. However, the BLM denied this request back in August, emphasizing its duty to manage public land for various uses.
A spokesperson for the Interior Department clarified that a geothermal lease wouldn’t grant permission for any land disturbance. Developers would still be required to present exploration or construction plans that undergo environmental reviews, alongside considerations of other existing projects.
Geothermal plants harness underground heat to produce electricity and can operate continuously, according to the Department of Energy. In October 2025, Nevada’s geothermal auction brought in an impressive $9.4 million from bids placed on 86 parcels, as mentioned by Interior Secretary Doug Burgum.
Alex Stevens, who manages policy and communications at the Institute for Energy Research, commented that the BLM should resolve competing development plans before proceeding with leasing these contentious parcels. He suggested that the agency should evaluate how these projects might connect to the grid and the timelines for their construction.
Stanford University professor Roland Horne mentioned that while land sharing could work, a geothermal site needs space that solar projects typically use. He noted that it is feasible to have wind and solar farms alongside geothermal wells, provided that all parties agree on the rights and leases.
If NextEra secures approval first, it would mean that a geothermal developer needs to avoid negatively affecting the solar project or offer compensation. The BLM also indicated that NextEra would have to collaborate with any future lessees to mitigate land use conflicts.
Initially, the BLM announced 83 parcels across ten counties in Nevada but later revised the total to approximately 265,155 acres. Interestingly, one parcel overlapping the Sawtooth site has been removed from the auction listings.
Projects like Invenergy’s proposed 300-megawatt Nivloc and Arevia Power’s 1,500-megawatt Gold Dust also intersect with the geothermal leases, alongside feedback from Leeward Renewable Energy about its Lone Mountain solar farm in Esmeralda County.
From the auction on Tuesday, half of the revenue generated from bids, rents, and royalties will go to Nevada, with a quarter allocated to the local county, and the remaining portion to the U.S. Treasury. Geothermal leases have a ten-year initial term, with possibilities for extension if active exploration or production occurs.
Currently, Nevada has 28 operational or authorized geothermal plants on land with federal interests, totaling over 950 megawatts of authorized capacity.
