Funding of up to $80m approved geothermal development in the Caribbean
Geothermal development of up to 60 MW in the Caribbean is being funded under a new $80 million funding package of the Green Climate Fund announced this week.
As part of a larger funding package of up to $745 million the Board of the Green Climate Fund has approved $80 million in funding for the development of up to 60 MW of geothermal power projects in the Eastern Caribbean.
Aimed at unlocking private sector funding the overall package is expected to help countries to reduce their emissions and adapt to the impacts of climate change.
The $80 million package for the Sustainable Energy Facility for the Eastern Caribbean is provided in cooperation with the Inter-American development Bank (IDB)
The package addresses key barries to development, such as high initial cost, drilling risk, lack of regulatory framework and lack of skills.
These barriers will be addressed by the Programme through: (i) contingent grants for drilling exploration which will help reducing early exploration risk and unlocking investments in the subsequent stages of production drilling, field development and plant construction; (ii) concessional loans which will help to reduce funding costs lowering overall capital costs so as to reduce the cost of energy for final users; the implementation of GE projects through PPP structures which will help limit new public debt and bring in the private sector; and (iv) technical assistance to improve the regulatory framework and capacity building will provide the necessary base for successful implementation of geothermal projects.
In a document provided on the Green Climate Fund website (linked below), details are provided on both the different components financed, but also the relevant partners for the package.
It seems like that the package will be open to the following countries of which all have either a geothermal project ongoing or at least considered: Dominica, Grenada, Saint Kitts & Nevis, Saint Lucia and Saint Vincnet & Grenadines.
Source: Green Climate Fund document (pdf)