{"id":219694,"date":"2024-12-20T08:40:00","date_gmt":"2024-12-20T12:40:00","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=219694"},"modified":"2024-12-20T11:41:05","modified_gmt":"2024-12-20T15:41:05","slug":"cdb-approves-usd-34-8-million-loan-to-build-geothermal-energy-plant-in-dominica","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/cdb-approves-usd-34-8-million-loan-to-build-geothermal-energy-plant-in-dominica\/","title":{"rendered":"CDB Approves USD 34.8 Million Loan to Build Geothermal Energy Plant in Dominica"},"content":{"rendered":"
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 The Caribbean Development Bank<\/a> (CDB, the Bank) has approved a USD 34.8 million loan to the Geothermal Power Company of Dominica (GPC) to fund the construction of a 10-megawatt (MW) geothermal power plant. The project is designed to strengthen Dominica\u2019s energy security, reduce electricity production costs, and significantly lower carbon emissions in the power sector.<\/p>

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Currently, Dominica imports over 90% of its energy, mainly in the form of fossil fuels. Approximately 70% of the country\u2019s electricity is diesel-generated, driving up energy costs and hindering business growth and progress towards key Sustainable Development Goals. However, Dominica, located in the Eastern Caribbean, is home to vast geothermal energy potential linked to its volcanic origin.<\/p>\n\n\n\n

Geothermal energy, derived from the Earth\u2019s heat, primarily in volcanic areas, provides a constant, 24-hour source of renewable energy\u2014unlike solar and wind power, which are subject to variability. This makes it a critical solution for reducing dependence on diesel among countries in the Eastern Caribbean that currently rely heavily on fossil fuels. <\/p>

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The power plant construction in Dominica follows significant strides in developing its geothermal development, including the drilling of production and re-injection wells. Estimates suggest that the island\u2019s geothermal potential could provide electrical power capacity up to 50-times the current peak demand of approximately 18 MW. <\/p>

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CDB\u2019s funding \u2013 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.<\/p>\n\n\n\n

This project is funded under CDB\u2019s GeoSmart Initiative<\/a> which seeks to support countries with geothermal potential in the Organisation of Eastern Caribbean States (OECS) in developing projects with funding and technical assistance.  <\/p>

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Mrs Therese Turner-Jones, CDB\u2019s Vice President of Operations (Ag), <\/strong>emphasised that the plant will enable Dominica to leverage its natural resources to diversify its energy supply. \u201cThis 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,\u201d <\/em>she said.<\/p>\n\n\n\n

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<\/a>, while St Kitts and Nevis<\/a> 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<\/a>.<\/p>

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Mr Joseph Williams, Coordinator of the CDB\u2019s Sustainable Energy Unit, <\/strong>noted that the approved funding for Dominica represents an important milestone and highlighted the importance of development financing in geothermal projects in small island developing states, given the high risk and national governments\u2019 fiscal and human capacity constraints. <\/p>

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He further highlighted CDB\u2019s contingently recovery grant (CRG) provided under GeoSmart: \u201cThis 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,\u201d <\/em>Mr Williams <\/strong>said.<\/p>\n\n\n\n

By tapping its geothermal potential, the OECS is not only working to strengthen its energy security but also contributing to regional efforts to reduce carbon emissions and increase resilience to climate change. Besides, energy affordability will help improve the competitiveness of these economies as electricity costs come down for consumers, households, and businesses. This marks a significant step towards a sustainable energy future for the Caribbean.<\/p>\n

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 The Caribbean Development Bank (CDB, the Bank) has approved a USD 34.8 million loan to the Geothermal Power Company of Dominica (GPC) to fund the construction of a 10-megawatt (MW) geothermal power plant. The project is designed to strengthen Dominica\u2019s energy security, reduce electricity production costs, and significantly lower carbon emissions in the power sector. Currently, Dominica […]<\/p>\n","protected":false},"author":3,"featured_media":219695,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-219694","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nCDB Approves USD 34.8 Million Loan to Build Geothermal Energy Plant in Dominica - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/cdb-approves-usd-34-8-million-loan-to-build-geothermal-energy-plant-in-dominica\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CDB Approves USD 34.8 Million Loan to Build Geothermal Energy Plant in Dominica\" \/>\n<meta property=\"og:description\" content=\" The Caribbean Development Bank (CDB, the Bank) has approved a USD 34.8 million loan to the Geothermal Power Company of Dominica (GPC) to fund the construction of a 10-megawatt (MW) geothermal power plant. The project is designed to strengthen Dominica\u2019s energy security, reduce electricity production costs, and significantly lower carbon emissions in the power sector. 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