California Desert Heats Up: Investors Rush To Tap Earth’s Endless Energy Goldmine

A transformation is underway in California’s desert regions as massive renewable energy projects reshape the terrain. The Eland solar-plus-storage plant in Kern County now supplies Los Angeles and Glendale with clean energy from 1.36 million solar panels and 172 battery systems. This single project generates 7% of Los Angeles’s electricity needs, pushing the city’s clean power supply to 64%.

Nearby, the Soda Mountain Solar Project in San Bernardino County plans to develop 300 MW of solar power plus 300 MW of battery storage on 2,670 acres of land. These projects are part of a larger trend: on a recent Tuesday, about 75% of California’s grid electricity came from renewable sources.

Battery storage systems are becoming an essential part of these developments. Eland’s 172 lithium iron phosphate battery units enable round-the-clock power delivery. The project includes 1,200 megawatt-hours of storage capacity, allowing solar energy to be used after sunset. The Soda Mountain project plans for 1,200 MWh of battery storage across 18 acres, addressing solar power’s intermittent nature.

Geothermal energy is also gaining momentum. A recent federal lease auction sold all 13 parcels covering 23,000 acres in Imperial, Lassen, and Modoc counties. Unlike variable wind or solar, geothermal provides baseline power 24/7. The Salton Sea and The Geysers remain major investment targets. The recent geothermal lease sale generated approximately $2.75 million in revenue, with half going to California and the remainder split between counties and the U.S. Treasury.

The Desert Renewable Energy Conservation Plan guides these developments, balancing energy production with environmental protection. California’s renewable energy use has grown from 11% at the start of the century to 39% in 2022, with goals of 60% by 2030 and 100% by 2045. These projects require careful planning as solar farms can potentially cause habitat disruption for desert wildlife.

Investor interest has boomed since 2021, with utilities, private equity, and green infrastructure funds competing for projects. Competitive lease bids show confidence in the region’s energy potential.

The decreasing costs of renewable-plus-storage projects like Eland are making these investments more attractive. As California pushes toward carbon neutrality by 2045, the desert’s role as an energy goldmine continues to grow.