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Dominica in talks with French group on geothermal project

Dominica in talks with French group on geothermal project Drilling rig on project site, Dominica (source: Enorca)
Alexander Richter 22 Feb 2021

The government of Dominica in the Caribbean is in negotiations with a consortium of French companies on the development of the geothermal project with targeted date of 2022.

Citizens of Dominica will soon reap the benefits of a new geothermal plant expected to be constructed in 2022.

This forms part of the Government’s goal of building a climate resilient nation, while seeking to reduce the cost of electricity for consumers and provide electricity to the French islands of Guadeloupe and Martinique which in turn will encourage foreign exchange

The plant will be constructed in the Roseau Valley and is expected to produce approximately 120 megawatts of electricity when completed.

Ambassador to the OAS, His Excellency Dr. Vince Henderson stated that over $25 million have been invested in this project to date. He explained that the Prime Minister has provided some of these funds through the CBI programme while the rest will come from donor agencies.

“So what we have actually sent is probably $5 million from local funds from the inflows of the CBI to finance the geothermal project. So we have put in $5 million for the acquisition of lands for the operation of the geothermal company; and we would expect the rest of the funds for the actual project will come from our partners who will be bringing in about $25 million in equity and the balance of the funds we will get from lenders such as the World Bank; we will use the grants from the UK that is fund we have been able to secure,” Dr. Henderson stated.

Dr. Henderson listed some of the benefits of the plant noting that “geothermal energy can operate with zero emissions, can serve as a power board, and it is really the only way that Dominica can transition in a very efficient way from diesel generation to renewable energy. for benefits to citizens and consumers you will see a reduction in tariffs and what we know for a fact is that it will cost us about half of what it costs DOMLEC to produce energy using generators,” the Ambassador explained.

Dr. Henderson went on to say that the Government is also looking at ways to sell energy to French territories in the region

“We need a partner. We need to get to the exports and this is one of the reasons why we have engaged in negotiations with a consortium of French companies to develop the domestic plant but also to move quickly to export. Because we have a great opportunity here to secure royalties from the sale of power from geothermal to French territories” he added.

To accomplish this mission, Government has several development partners assisting financially. These include organizations such as the World Bank, the Caribbean Development Bank, Small Island Developing States- SIDS Dock and the Clinton Foundation among others.

In a follow article on Dominica News Online, futher details are given on the current status of things.

It states that there are final negotiaions ongoing with 5 bid agreements having been worked on since April 2020 with the expectation to complete them by March 31, 2021. A tender for drilling new wells went out in early Frebruary 2021, as well as for civil works which are expected to start in May.

Henderson said the government has received the tenders for the actual construction of the power plant and its installation and hopes to award a contract by the end of March.

“We are now negotiating the term sheet to finalize the terms of the contract,” Dr. Henderson stated adding that negotiations for the financing are at an advanced stage with all the lenders having already submitted their terms sheets and are expected to begin their due diligence next month.

Source: Government of Dominica, Dominica News Online