Aerial view of the positioning of the Dominica geothermal energy mission and surrounding areas (supply: Dominica Geothermal Growth Firm)
The Caribbean Growth Financial institution has authorized a $34.8 million mortgage to assist the development of a 10-MW geothermal energy plant in Dominica.
The Caribbean Growth Financial institution (CDB) has authorized a USD 34.8 million mortgage to fund the development of a 10-MW geothermal energy mission in Dominica. The mission is a public-private partnership between the Commonwealth of Dominica (GoCD) represented by the Geothermal Growth Firm of Dominica (DGDC) and Ormat Applied sciences Inc. (Ormat).
AMALA Clear Power Advisors along with GeothermEx and POWER Engineers, served because the Lender Technical Advisor (LTA), serving to perform the due diligence for the mission to tell the CDB resolution taken on December 12, 2024.
The Caribbean island nation of Dominica has made vital strides prior to now years in direction of the event of its first geothermal energy mission. Drilling and testing of the manufacturing and reinjection wells have already been accomplished, and more moderen updates point out that web site preparation has been ongoing for the ability plant building that’s anticipated to start out by early 2025.
The ten-MW geothermal energy mission is about to make a huge effect within the prices and reliability of electrical energy provide in Dominica. At present, Dominica imports over 90% of its power, primarily within the type of fossil fuels. Roughly 70% of the nation’s electrical energy is diesel-generated, driving up power prices and hindering enterprise development and progress in direction of key Sustainable Growth Targets. Early research recommend that the island’s geothermal potential may present electrical energy capability as much as 50-times the present peak demand of roughly 18 MW.
The Authorities of Dominica has additionally engaged with an organization from Trinidad and Tobago to undertake a pre-feasibility examine for the manufacturing of inexperienced ammonia utilizing geothermal power.
“This plant will go a great distance in serving to Dominica obtain its sustainable power targets and transition from fossil fuel-based electrical energy technology to completely renewable sources,” mentioned Mrs Therese Turner-Jones, CDB’s Vice President of Operations.
Supporting power safety within the Caribbean area
This mission is funded below CDB’s GeoSmart Initiative which seeks to assist nations with geothermal potential within the Organisation of Japanese Caribbean States (OECS) in creating tasks with funding and technical help.
CDB’s funding – with sources from the Inter-American Growth Financial institution (by the Inexperienced Local weather Fund), and Authorities of Canada by the World Affairs Canada – covers 51% of the entire mission prices of roughly USD68 million, with the CARICOM Growth Fund (CDF) contributing 22%, and the rest as fairness from the GPC.
Mr Joseph Williams, Coordinator of the CDB’s Sustainable Power Unit, famous that the authorized funding for Dominica represents an necessary milestone and highlighted the significance of growth financing in geothermal tasks in small island creating states, given the excessive threat and nationwide governments’ fiscal and human capability constraints.
Along with Dominica, different OECS nations have acquired assist below the GeoSmart Initiative. A USD9.4 million grant has been authorized for check drilling in Grenada, whereas St Kitts and Nevis acquired USD 17 million in funding in direction of the drilling of manufacturing wells on the island of Nevis. CDB beforehand offered USD27 million to assist accomplished geothermal exploration in Saint Vincent and the Grenadines.
Tapping the geothermal potential of the OECS nations helps strengthen the power safety of the area by lowering dependence on imported fossil fuels, whereas additionally lowering carbon emissions and contributing to international efforts to mitigate the results of local weather change. It additionally helps improve the competitiveness of those economies by supplying reasonably priced and dependable electrical energy to shoppers, households, and companies.
Supply: Caribbean Growth Financial institution and AMALA Clear Power Advisors
