The Caribbean Development Bank (CDB) has sanctioned a loan amounting to USD 34.8 million to the Geothermal Power Company of Dominica (GPC) to facilitate the establishment of the geothermal power plant with a capacity of 10 megawatts (MW). This initiative aims to bolster Dominica’s energy security, lower the expenses associated with electricity generation, and drastically cut carbon emissions within the power sector.
At present, Dominica relies heavily on the importation of over 90% of its energy needs, primarily sourced from fossil fuels. Of this, around 70% of the island’s electricity is generated using diesel, which not only escalates energy costs but also stifles business expansion and hinders progress towards vital Sustainable Development Goals. However, being located in the Eastern Caribbean, Dominica possesses significant geothermal energy possibilities, arising from its volcanic landscape.
Geothermal energy is harnessed from the heat generated within the Earth, particularly in volcanic regions, providing a stable and continuous source of renewable energy. This contrasts with solar and wind energy, which can be inconsistent. Hence, geothermal power stands as a pivotal solution for Eastern Caribbean nations that are heavily dependent on diesel.
The construction of the power plant is a continuation of the country’s advancements in geothermal exploration, which have included drilling production and reinjection wells. Projections indicate that the geothermal resources on the island could cater to an electrical power capacity that is up to 50 times greater than the current peak demand of about 18 MW.
The financing from the CDB, which includes assistance from the Inter-American Development Bank (via the Green Climate Fund) and the Government of Canada through Global Affairs Canada, will cover 51% of the project’s total expenses, estimated at approximately USD 68 million. Additionally, the CARICOM Development Fund (CDF) will contribute 22%, while the rest will be funded through equity from GPC. This undertaking is part of CDB’s GeoSmart Initiative, which aims to support the geothermal development efforts of countries in the Organisation of Eastern Caribbean States (OECS) by providing necessary funding and technical support.
Mrs. Therese Turner-Jones, who serves as the CDB’s acting Vice President of Operations, stressed that the plant will empower Dominica to make use of its natural resources for diversifying its energy portfolio, remarking,”This plant will go a long way in helping Dominica achieve its sustainable energy goals and transition from fossil fuel-based electricity generation to entirely renewable sources.”
In addition to Dominica, other member states of the OECS have benefitted from the support of the GeoSmart Initiative. For instance, a grant of USD 9.4 million has been approved for test drilling in Grenada, while St. Kitts and Nevis have received USD 17 million towards the drilling activities on Nevis. Previously, the CDB allocated USD 27 million to facilitate completed geothermal exploration in Saint Vincent and the Grenadines.
Mr. Joseph Williams, who coordinates the CDB’s Sustainable Energy Unit, pointed out that the funding approval for Dominica is a significant milestone and underscored the importance of development financing in geothermal initiatives, particularly in small island developing states that face high risks along with limited fiscal and human resources.
He also emphasized the significance of the CDB’s contingently recovery grant (CRG) provided under GeoSmart: “This is a key financial mechanism that helps address the high drilling risk and unlock private investment. The CRG allows for the funding of exploration such that if the drilling is unsuccessful, the funding remains a grant, with government or developer not having to repay a loan,” stated Williams .
By harnessing its geothermal capabilities, the OECS will not only enhance its energy security, but also playing a role in the regional effort to diminish carbon emissions and improve resilience to climate change. Furthermore, making energy more affordable stands to enhance the competitiveness of these economies, as reductions in electricity costs benefit consumers, households, and businesses alike. This initiative seeks to establish crucial advancement toward a sustainable energy future for the Caribbean, said a statement from the CDB.
If ever a project could resemble a person character then this resemble the PM. it’s taken a long time and we ain’t seen much.lots of money put in geothermal and for all kinds of reasons. (use your imagination). This should have been completed 8yrs ago.The truth is it’s not just a geothermal ,it’s been used for other reasons that are being looked into .
Why must everything do for the betterment of mankind has to be politically motivated? Why don’t you see the bigger picture? Is it a case of not wanting the best for the nation?
Not politically associated…..
the plan was for the plant to produce excess capacity which would be sold to the neighbours.
the money was there, the usual hooplah about soon come…
don’t expect any electricity tariff to come down, the cost will probably remain the same, the investors will want an immediate profit.
in Iceland the electricity is free, the power to generate it comes from the ground.
So, having had several stories about the “money is there”, we “expect to complete ” etc etc… what’s the real story?
instead of being a government mouthpiece, go do some investigative journalism and give us the truth. or is DNO the fox news of the country now?
coco makak
They are going to piss-away this funding just as they have already done for the so-called CBI funds that were supposedly already invested in this super “laundromat”. God watches all, and knows all.
34.8 million us dollars to cover half of the expenses. that equates to 69.6 million us dollars to pay for everything. a year or two ago a guy came with a plan to the government showing cost estimates and the company interested in building a similar 10 megawatt power plant using solar power. The cost for that was even less that 1/6 of the total cost of our yet to see thermal power plant. it costs only 10 million usd to get a solar power plant built and functioning. but the government in all its “wisdom” shoved his idea away. i really do not think that we are progressing as a people. impossible.
This geothermal project can be likened to a ghost. Under the stewardship of the corrupt and inept Roosevelt-led plutocracy geothermal energy is just another one of his pipe dreams.
The senses deceive from time to time, and it is prudent never to trust wholly those who have deceived even once.
Any effort to reduce the cost of electricity to the masses is good. The loan from the Caribbean Development Bank is a good start and a credible source of financing that I believe this would attract other investors to come on board.
Geothermal energy will help to reduce the cost of electricity and ultimately the cost of doing business.
I want to urge all Dominican at home and abroad to support this project.
And I look forward to reduced electricity, the lowering of the cost of doing business, an increase in sustainable job opportunities and foreign exchange earnings.
I have always supported all development projects for Dominica, and, want to continue to endorse the efforts of the Geothermal Power Company in its pursuit of bringing cheaper and more sustainable electricity to all Dominicans.
them man lie so much yuh . look the truth come out. them doh have no money to build it. they talking out there behinds .
ebeh look it
Millions of dollars over 20 years and all they have to show for it is a bunch of hot steam on the mountain, who got all the money?
Well UWP,their acolytes and puppets will burst some blood vessels.They toufaying.Blue enemies of the state.
Vince geotherma Henderson, how much money have you now sunk into this hole that you then plan to handover to an American company to profit on Dominicans and their geothermal electricity? Tell us the total so far? US $1billion? An how much in the ministers deep pockets? I hear every project ministers taking their cut!
Dem Chinese finish de foundation nuh?????????
de truth hurting skerrit bad bad
why he send dat joker local contractor and dem tired equipment up there to spoil de scene to make room for Chinese to take over de project
So, are you saying that after all this time, the government has never actually had the finances to see through this much touted ‘dynamic’ project?