Climate, Grid Investment Shift Dominates Energy Funding Landscape

A major shift in energy investment is underway, with infrastructure funds now accounting for 77 percent of all new climate capital raised, according to a report from Sightline Climate. This movement of capital toward established energy infrastructure and away from early-stage venture capital reflects a global priority on energy security and grid resilience.

The aging U.S. power grid is increasingly viewed as a national security risk, with JPMorgan noting decades-old equipment is vulnerable to failure from extreme weather and cyber threats. Globally, grid spending topped $470 billion in 2025, a 16 percent increase, with about $5.8 trillion in upgrades forecast by 2035. In the United States alone, $1 trillion of that total is earmarked for grid improvements.

Alongside grid investment, enhanced geothermal systems (EGS) are gaining traction as a source of firm, clean power. EGS uses innovative drilling technologies, including techniques similar to those used in hydraulic fracturing, to create hydrothermal reservoirs where they do not naturally exist. The U.S. Geological Survey estimates the EGS potential in the Great Basin of the Southwest alone at 135 gigawatts (GW).

Houston-based startup Fervo Energy is a leader in the U.S. geothermal sector and recently signed a deal with Turboden America for 1.75 GW of turbine capacity for new projects. Paolo Bertuzzi, president of Turboden America, stated that "geothermal energy will be essential in stabilising a strained power grid with clean, firm energy." The first EGS power generator in the United States is expected to launch in 2026.

The push for firm power sources like geothermal addresses a critical challenge created by the rapid expansion of variable renewables like solar and wind, which can lead to grid instability and market volatility. Scientists continue to explore novel solutions, including a recent study from China on a wood-based solar thermal energy harvesting platform, though such early-stage technologies may face funding challenges amid the broader infrastructure investment trend.

For Bakken operators, the massive capital flows into grid modernization and firm power generation like geothermal represent both a challenge and a potential opportunity. The emphasis on energy security and resilient infrastructure underscores the ongoing importance of reliable energy production, while the drilling technologies pioneered in oil and gas are being directly applied to the expanding geothermal sector.