Dubai, CMC: Dominica has signed an agreement with the US-based Ormat Technologies Inc—and its subsidiaries to develop a 10-megawatt (MW) geothermal plant on the island.
The agreement, including the state-owned Dominica Electricity Services (DOMLEC), was signed Tuesday on the sidelines of the United Nations Climate Change Conference (COP 28).
The agreement was signed by Foreign Affairs, International Business, Trade and Energy Minister Dr. Vince Henderson, Ambassador Francine Baron, DOMLEC director, and Paul Thomsen, Vice President of Business Development of Ormat Technologies Inc. and its subsidiary company.
Under the agreement, Ormat Technologies Inc. will finance the plant’s construction, operation, and maintenance of the power plant and geothermal wells for 25 years, while the Dominica government will retain ownership of the wells, lands, and other assets it has invested in.
At the end of the contracted period, the power plant and other assets acquired during the life of the agreement will be transferred to the Government of Dominica.
The government said that this development represents a significant milestone for the island as it seeks to stabilize and reduce the domestic electricity tariff, decarbonize electricity generation, and responsibly use Dominica’s rich geothermal resources.
The generated electricity will be sold to DOMLEC and help reduce Dominica’s dependence on fossil fuels. The power plant is expected to be commissioned by the end of 2025, with further capacity expansion planned for the near future.
The authorities said that in partnering with Ormat Technologies Inc., Dominica has chosen a leading geothermal company with over 50 years of industry experience and one with the added advantage of manufacturing much of its equipment.
The company owns or has installed approximately 3,200 MW of gross capacity globally and operates the geothermal power plant in the neighboring French island of Guadeloupe.
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