The Government of Dominica and the Dominica Electricity Services (DOMLEC) have signed an agreement with Ormat Technologies Inc., a US company and its subsidiaries for the development of a 10 MW geothermal power plant in Laudat.
The agreement was signed on Tuesday, December 5, 2023, on the margins of COP 28 in Dubai, United Arab Emirates. Under the agreement, Ormat Technologies Inc. will finance the construction of the plant, operate and maintain the power plant and geothermal wells for a period of 25 years while the Government of Dominica will maintain ownership of the wells, lands and other assets that it has invested in. At the end of the contracted period, the power plant and other assets acquired during the life of the agreement will be transferred to the Government of Dominica.
This development represents a major milestone for Dominica as Government seeks to stabilize and reduce the domestic electricity tariff, decarbonize electricity generation and [undertake] the responsible use of Dominica’s rich geothermal resources. The electricity generated will be sold to DOMLEC and will help reduce Dominica’s dependence on fossil fuels. The power plant is expected to be commissioned by the end of 2025, with further capacity expansion planned for the near future.
In partnering with Ormat Technologies Inc., Dominica has chosen a leading geothermal company with over 50 years’ experience in the industry and one that possesses an added advantage of manufacturing much of its own equipment. The company currently owns or has installed approximately 3,200 MW of gross capacity globally, and operates the geothermal power plant in the neighbouring island of Guadeloupe.
The Honourable Minister for Foreign Affairs, International Business, Trade and Energy, Vince Henderson, signed on behalf of the Government of Dominica, Ambassador Francine Baron, Director, Board of Directors of DOMLEC, signed on behalf of the power company and Paul Thomsen, Vice President of Business Development, signed on behalf of Ormat Technologies Inc. and its subsidiary company.
Does anything ever come to fruition in DA or does it just go round n round?
The main part of the whole agreement is in the 2nd paragraph. It seems to have been done by an immature, it can’t be a done deal. This can in no way lower our electricity rates. Since you can’t handle one year, we can’t handle 25 years.
I’m out, and I’m changing my name.
What is wrong with this so called government and this geo-demonal project. Can’t Dominicans see that this same so called government has tied (Maway) this project? It’s Skerrit hand. It has passed over this thing. How can this project evolve when everything I mean everything Skerrit touches have crashed. How can this project be of any reality under Skerrit. No way Dominica. No way. Another waste of ink. Sign my a….ss.
How many more con job agreements are going to be signed? They have been signing agreements for 20 years and still no electricity just hot steam up on the mountain. Where is all the money going? Who is benefiting from this con? What is the expertise of this “Company” there are no geothermal power plants in the US.
a guy came with a plan and a team willing to build a few megawatts of solar energy for dca at a cost of 5mil usd. the government declined. the government spent 25mil dollars on the drilling of wells and testing to the icelandic company. now the government is signing another contract with another company again for the production of power. the company will take the profits for 25 years. that’s a possible 25 million (at one million per year) not including the cost to set up the facility. if we built a solar farm in salisbury or on the hills of tarreau (13 million ecd) and a wind farm on the east coast (10 million ecd). that would have costed us about 23 million ecd. less than the amount needed to pay for the injection wells, and we wouldn’t need to be indebted to anyone else. from then on we could take our time and slowly develop the geothermal wells ourselves. but no. His majesty runs things and listens to no one.
Government of Dominica signs ANOTHER agreement for development of geothermal power plant
DNO i corrected the mistake in ur headline
ADMIN: Thank you, we stand corrected.
I have to say this works well for Ormat Tech. They get to exit the scene when the O&M cost will be peaking and some of the critical components of the power plant will be approaching End of Life. The Gov’t of Dominica and by extension the country run the risk of owning a very costly operation 30 yrs down the road. How is this going to reduce the cost of energy?
Bravo! Well done. This is a good big leap forward.
What a bunch of “gen gan gollies” the financial and economic rape of Dominica is so destructive and real that these political pedophiles will do anything to remain in power. When will this carnage come to an end only God knows; but like the longest rope i must come to an end. These two political leaches should be apprehended on their return to Dominica and jailed without trial.
How is this going to deliver lower prices? I thought the idea was that the Government would undertake the entire project to avoid the profit element of the sales hence relief from high prices. Now we may have to pay more. What’s the point then?
This is probably the dumbest agreement I have read in all my years, a foreign company is going to own the geothermal production plant! In 25 years who is to say the plant is going to function in the same capacity as it may future be? Who is to say the equipment won’t fall apart after that time?! Why not contract a company to build the plant, educate Dominicans on how to run and maintain it, keep local job by local people?!!! This government must really HATE local people and find them incompetent to do business OMG!
“This is probably the dumbest agreement I have read in all my years.”
You mean, you got a copy of the agreement? Please refer us to the link so we can all be as informed as you are.
Why such express such immature mentality, can you not read something to understand and not be led by your political partisan
beliefs to make silly conclusions. Opinions are the cheapest commodities, you have clearly demonstrated this by the content of your lack of understanding regarding such important milestone in
the development of the Country, so long wallow in your silly judgmental mentality.
Meanwhile, not one solor panel is being considered to be laid on ANY government administrative building when they can easily get quality energy saving systems from their best friends the Chinese. Instead they rather bleed the treasury dry as electricity prices go up by their own hand. Quality of service is shoddy as we see lately (load shedding). But no, they dont want to lose the confidence of the people by doing solar electricity on their own admin buildings to save the nation a dollar. instead they rather make us scrunt until geothermal is FINALLY!! here. Maybe in 2025. but watch the goal post get moved again.
Unbelievable right solar energy is so cheap and easy to setup even on an overcast day it still produces electricity, albeit at a reduced production!
Dear Dominica,
If I have read the article correctly, the geothermal project is to potentially develop a 10MW power station…Folks, do you all realize that in modern power generation modalities, 10MW is only the power of one large modern diesel generator!
If we are going to pay millions for the potential equivalent of one 10MW generator, we are surely being shafted by this government! Something is not right…please help me understand the logic in this!
Amen. we act as if we are scared of change. as if, if we dont know that is someone isnt doing it as we want that we can change them That we can change any government every five years if or when we want. But no, we continue to live in fear, like scared little slaves afraid of the master who we allow to victimize us and have us like fools cowering. in the end, when he is done with all of US, i hope we will have enough for ourselves to survive at all.
but wait a minute………hasn’t work already been going in with this for a number of years? this is not a new project….
But how is it that we can proudly say we spending a billion dollars for an international airport yet we have to take so many loans to develop geothermal.
you see dat 25 years ………alas poor us
In times past politics was more of a secret or a course which you always wanted to take but could not find the time. Today politics is right up in your face and you know who is who and who said what etc.
Howbeit, you wished that you had remained ignorant of this game called politics. Because, now you know the truth about it it has damaged your conscience and morals and therefore, you refuse to truthfully admit the clear evidence of what politics is doing in your habitat, in your life, in your country because you are scared of being ostracized, fired or scared of forfeiting your gains and benefits from that political system. So the truth is no longer in you.
“What shall it profit a man, if he should gain the whole world and lose his own soul.” Millions have not taken this question seriously. What they take seriously with fervency is politics. Such people may live to regret it in this life as well as in the next. Yes, politics will test our inner character and all will see it.
Please correct me if I am wrong. The government claimed they spent over $50 million (or is it $150 million – I don’t remember the exact figure) on testing and drilling. Whatever the number is, it is very large. After spending that kind of money, they have employed the services of a private company to build and own the main source of generation for 25 years.
I am a free market guy, so I am fundamentally not opposed to the idea of private ownership of businesses. But my point is, the government has sold the public a bill of goods, that after spending this colossal amount of money, they will enjoy low cost energy.
I don’t want to pass judgment, but let’s wait and see. At least the plant might actually get built.
Anything to take off some of the heat from DOMLEC’s failure, but these type of stories surrounding this project aren’t so new, time will reveal.
I think these big-tings-a-gwan strategies are just CYA since those two guys just got a black eye from the manager resigning. I may be wrong but I can’t stand geothermal being tossed around like a political rag doll. That’s old already.
Well, Vince just gave up. That’s a very bad deal, no negotiating skills. I’m out! name change and all.
After all that hard work and CBI money spent we hand our Geothermal to a foreign company who will be able to set the rates that they charge DOMLEC for their electricity for at lest 25 years! Welcome to the new Dominica where fools were convinced by the con-Vince that Dominicans would have lower costs of electricity once his geo-firma was completed and he would be exporting energy to Guadeloupe and Martinique! But look he is telling us now that this company already manages a geothermal power plant in Guadeloupe!
Airport will be owned by Chinese for 100 years and geothermal will be owned by Ormat Technologies Inc. for 25 years! Not just contracted to build but owning it after and charging us whatever they like! Those of you who will clap and support this now will be crying about high rates and fees after because all these companies care for is to make high profits for their shareholders! All now Ormat Technologies Inc. is in the red and desperately need to generate profits!
I know, as accustomed, a big announcement was imminent. Check the pattern. Every time, like clockwork, when there is bad news in Dominica, this asinine regime tries to change the headlines with specious announcements.
Every thing Roosevelt does is for political expediency. The only time one should believe him is when the project is finished and delivered.
How many contracts has the Government signed for the geothermal project? 😀
it’s the related articles under the post for me 🤣🤣🤣 2025 that have to come online…when is next election again? 🤣
Came to ask this exact same question.
Aye aye aye. Garçon we Dominicans have patience eh. We have been fed these stories time and time again and remain there in perpetual hope that one day these things will come true. News flash, they won’t because our leaders have proven that they don’t have the capacity and ability to execute any plan, even those given to them. This is a can’t do government. Get rid of them. We need a new management team and if they can’t deliver we get rid of them again. We need to move away from this party loyalty and be more patriotic.