French EDF said to have withdrawn from geothermal project in Dominica
Iceland Drilling rig on site in Dominica, Caribbean (source: ISOR)
Alexander Richter
12 Apr 2013
French Electricite de France (EDF) is reported to have withdrawn from Dominica geothermal project leaving project partners startled about the reasons and fears on the effects for the project and the region.
News from France report that Electricite de France (EDF) has supposedly withdrawn its participation in the geothermal project in Dominica, Caribbean.
This has created a strong reaction from local politicians and in a letter to French President Hollande, Serge Letchimy, President of the Regional Council on Guadeloupe said: “I ‘m surprised to learn that the President of EDF announced the withdrawal of the public company’s project to build a geothermal plant in Dominica where she was to partner the State of Dominica, Guadeloupe and Martinique areas, ADEME. BRGM, AFD and French several private partners.
This project aims to provide 50 MW to Guadeloupe and 50 MW to Martinique, thereby reducing their dependence on fossil fuels and thereby making savings of around EUR 100 million ($130 million) per year. It would also help neighbor Dominica to be fully supplied by green power.”
EDF cites a “lack of profitability” of the investment in Dominica, and the decision comes to reduce the capital contribution of EDF. But there also seems to be a shift in investment interest towards other projects.
This is contrary to earlier statements by the company, that always pointed out what “great interest the company has in these transactions for the creation of a French network of excellence in geothermal” and its opportunities internationally.
There also seems to have been no communication with project partners, which leaves everybody stunned and is seen by the Caribbean partners as unacceptable. Local politicians are also very concerned about the economic implications of this – considerably hasty decision.
Source: CaraibCreoleNews
