The Caribbean Development Bank (CDB) on Friday announced approval of a US$34.8 million loan to the Geothermal Power Company of Dominica (GPC) to fund the construction of a 10-megawatt (MW) geothermal power plant.
A release from the Barbados-based CDB said that the project is designed to strengthen Dominica’s energy security, reduce electricity production costs, and significantly lower carbon emissions in the power sector.
Currently, Dominica imports over 90% of its energy, mainly in the form of fossil fuels, the release said, and approximately 70% of the country’s electricity is diesel-generated, driving up energy costs.
However, Dominica, located in the Eastern Caribbean, is home to vast geothermal energy potential linked to its volcanic origin and provides a constant, 24-hour source of renewable energy, the release said.
The power plant construction in Dominica follows significant strides in developing its geothermal development, including the drilling of production and re-injection wells. The release said that estimates suggest that the island’s geothermal potential could provide electrical power capacity up to 50-times the current peak demand of approximately 18 MW.
CDB’s funding – with resources from the Inter-American Development Bank (through the Green Climate Fund), and Government of Canada through the Global Affairs Canada – covers 51% of the total project costs of approximately USD68 million, with the CARICOM Development Fund (CDF) contributing 22%, and the remainder as equity from the GPC.
This project is funded under CDB’s GeoSmart Initiative which seeks to support countries with geothermal potential in the Organisation of Eastern Caribbean States (OECS) in developing projects with funding and technical assistance.
In addition to Dominica, other OECS nations have received support under the GeoSmart Initiative. A USD9.4 million grant has been approved for test drilling in Grenada, while St Kitts and Nevis received USD 17 million in funding towards the drilling of production wells on the island of Nevis. CDB previously provided USD27 million to support completed geothermal exploration in Saint Vincent and the Grenadines.
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Publish date : 2024-12-21 11:00:00
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