IRENA/ ADFD reporting on Saint Vincent & Grenadines geothermal project
The La Soufriere geothermal project, a public-private partnership development on Saint Vincent and the Grenadines in the Caribbean expects to commence drilling this year as highlighted in recent report by IRENA and ADFD.
The IRENA/ADFD Project Facility represents a partnership between the two key organisations to promote renewable energy in developing countries. The International Renewable Energy Agency (IRENA) and the Abu Dhabi Fund for Development (ADFD) have released a report (pdf) that reviews concrete progress over the first five years of their joint facility to finance such projects.
Between 2014 and 2018, projects selected in five annual cycles were awarded concessional loans worth USD 214 million, with 16 projects subsequently advancing through various stages of implementation. Seven projects from early cycles reached the construction or installation stage, with renewable power generation set to start in 2019.
One of the projects supported by the facility is the Saint Vincent and the Grenadines geothermal development project, a public-private development effort. The project received funding in the second cycle of the Project Facility.
The La Soufriere geothermal energy project is a 10-15 MW geothermal power project that could transform the energy sector of the Caribbean island state, providing a sustainable and reliable source of renewable power. In November 2018, the developer – a public private partnership between the Government of Saint Vincent and the Grenadines, Light & Power Holdings and Reykjavik Geothermal, signed a drilling we signed a drilling contract with Iceland Drilling Company.
ADFD has provided a concessional loan of USD 15 million for the project, with co-financing being provided by equity partners and several soruces of public funding including the Government of the island state and donor agencies. Civil works are already under way and drilling will commence this year. The project completion is expected by 2023.