Dominica goes after renewables

THE WORLD Bank has approved a US$27million project to support the construction of a small, seven-megawatt geothermal power plant in Dominica.

The goal is to increase the share of renewables, diversify the country’s energy matrix, and identify a clear road map for private-sector investment in geothermal development.

Dominica has a small power system that relies heavily on diesel to produce electricity. The average price of electricity on the island is among the highest in the world, with around 33 US cents/kWh as of December 2016, and customers are exposed to the volatility of international oil prices. Geothermal is more cost efficient, climate-resilient and greener.

Following Hurricane Maria, 75 per cent of the power network was damaged, leaving the whole island without electricity. In response, the government adopted the National Resilient Development Strategy, which sets Dominica’s vision to become “the first climate-resilient country in the world”. Diversifying the energy mix is a key element of this strategy.

“This is an extraordinary opportunity for Dominica to reach its energy and climate goals by investing in geothermal, and to build a greener and more resilient future. The country has huge potential to provide reliable, low-cost renewable and high-quality energy in support of climate-resilient growth,” said Tahseen Sayed, World Bank country director for the Caribbean.

The Geothermal Risk Mitigation Project is expected to significantly lower electricity costs in Dominica and increase the share of renewable energy in the country’s energy mix from 25 to 51 percent, reducing greenhouse gas emissions by 38,223 tons of CO2 per year. It will also assess the potential to export home-grown geothermal energy to its neighbours.

The project will be implemented by the Dominica Geothermal Development Company Ltd and is financed by US$17.2 million in credit from the International Development Association, and US$9.95 million from the Clean Technology Fund. Financing is also being made available through grants from the United Kingdom’s Department for International Development (DFID) – US$10 million from DFID and US$2 million from the Small Island Developing States DOCK Initiative, in addition to technical assistance from the government of New Zealand and the Agence Française de Développement.