BRIDGETOWN, Barbados, CMC—The Barbados-based Caribbean Improvement Financial institution has authorised a US$34.8 million mortgage to the Geothermal Energy Firm of Dominica (GPC) to fund the development of a 10-megawatt (MW) geothermal energy plant.
The undertaking is designed to strengthen Dominica’s power safety, cut back electrical energy manufacturing prices, and considerably decrease carbon emissions within the energy sector.
At the moment, 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 power prices and hindering enterprise progress and progress in the direction of key Sustainable Improvement Objectives. Nonetheless, Dominica, positioned within the Jap Caribbean, has huge geothermal power potential linked to its volcanic origin.
Geothermal power, derived from the earth’s warmth, primarily in volcanic areas, supplies a continuing, 24-hour supply of renewable power—in contrast to photo voltaic and wind energy, that are topic to variability.
This makes it a crucial resolution for lowering diesel dependence amongst international locations within the Jap Caribbean that at present rely closely on fossil fuels.
The facility plant development in Dominica follows important strides in creating its geothermal assets, together with the drilling of manufacturing and re-injection wells. Estimates counsel that the island’s geothermal potential may present electrical energy capability as much as 50 occasions the present peak demand of roughly 18 MW.
CDB’s funding—with assets from the Inter-American Improvement Financial institution (by way of the Inexperienced Local weather Fund) and the Authorities of Canada by way of International Affairs Canada—covers 51% of the whole undertaking prices of roughly USD68 million, with the CARICOM Improvement Fund (CDF) contributing 22% and the rest as fairness from the GPC.
This undertaking is funded underneath CDB’s GeoSmart Initiative, which seeks to help international locations with geothermal potential within the Organisation of Jap Caribbean States (OECS) in creating tasks with funding and technical help.
“This plant will go a great distance in serving to Dominica obtain its sustainable power objectives and transition from fossil fuel-based electrical energy technology to completely renewable sources,” mentioned Therese Turner-Jones, the CDB’s Vice President of Operations (Ag).
She additionally emphasised that the plant will allow Dominica to leverage its pure assets to diversify its power provide. mentioned.
Along with Dominica, different OECS nations have obtained help underneath the GeoSmart Initiative. A US$9.4 million grant has been authorised for take a look at drilling in Grenada, whereas St Kitts and Nevis obtained US$17 million in funding for drilling manufacturing wells on the island of Nevis.
CDB beforehand supplied US$27 million to help the finished geothermal exploration of Saint Vincent and the Grenadines.
Joseph Williams, Coordinator of the CDB’s Sustainable Power Unit, famous that the authorised funding for Dominica represents a big milestone and highlighted the significance of growth financing in geothermal tasks in small island creating states, given the excessive danger and nationwide governments’ fiscal and human capability constraints.
He highlighted CDB’s contingently restoration grant (CRG) supplied underneath GeoSmart.
“This key monetary mechanism helps tackle the excessive drilling danger and unlock non-public funding. The CRG permits for exploration funding such that if the drilling is unsuccessful, the funding stays a grant, with authorities or developer not having to repay a mortgage,” Williams mentioned.
In keeping with the CDB, by tapping its geothermal potential, the OECS will not be solely strengthening its power safety but in addition contributing to regional efforts to scale back carbon emissions and enhance resilience to local weather change. Power affordability will assist enhance the competitiveness of those economies as electrical energy prices come down for customers, households, and companies. This marks a big step in the direction of a sustainable power future for the Caribbean.
