Dominica Geothermal Development Project

The Dominica Geothermal Development Project is a transformative initiative aimed at harnessing the island’s substantial geothermal resources to provide sustainable and cost-effective energy. Spearheaded by the Dominica Geothermal Development Company Limited (DGDC Ltd.), a government-established entity in December 2016, the project seeks to reduce the nation’s reliance on imported fossil fuels, enhance energy security, and position Dominica as a leader in renewable energy within the Caribbean.

Dominica Geothermal Development Project Overview

The primary focus of the project is the construction of a 10-megawatt (MW) geothermal power plant in Laudat, a village located in the Roseau Valley. This facility is designed to harness geothermal energy from the Earth’s heat, providing a constant and renewable power source. The plant’s capacity is projected to supply electricity to approximately 23,000 homes, significantly reducing the island’s dependence on diesel-generated power.

Financial Partnerships and Investments

The development of the geothermal power plant has attracted substantial financial support from various international partners:

• Caribbean Development Bank (CDB): In December 2024, the CDB approved a USD 34.8 million loan to the Geothermal Power Company of Dominica (GPC) for the construction of the 10-MW plant. This funding aims to strengthen Dominica’s energy security, lower electricity production costs, and significantly reduce carbon emissions.
• European Union Latin America Investment Facility (LACIF): Since 2013, LACIF has provided EUR 2 million for technical assistance, including exploratory drilling and feasibility studies, confirming the high geothermal potential in the Roseau Valley.
• Ormat Technologies Inc.: In December 2023, the Dominica Government and the Dominica Electricity Services Ltd. (DOMLEC) signed an agreement with Ormat for the financing, construction, operation, and maintenance of the geothermal power plant in Laudat. Ormat will operate the plant for 25 years before transferring ownership to the government.

Environmental and Economic Benefits

The geothermal project is poised to offer numerous advantages:

• Environmental Impact: By replacing diesel-based power generation, the plant is expected to cut carbon emissions significantly, contributing to global climate change mitigation efforts.
• Economic Advantages: The shift to geothermal energy is anticipated to lower electricity costs for consumers and businesses, stimulate economic growth, and enhance Dominica’s energy independence.

Community Engagement and Future Prospects

The DGDC Ltd. has actively engaged with local communities, particularly in the Roseau Valley, to ensure that residents are informed and involved in the project’s development. Public consultations and meetings have been held to address concerns and provide updates on progress.

Looking ahead, the successful implementation of the geothermal power plant in Laudat could pave the way for future expansions, including the potential export of clean energy to neighboring islands such as Guadeloupe and Martinique. This aligns with Dominica’s broader vision of becoming the world’s first-climate resilient nation and a renewable energy leader in the Caribbean.

The Dominica Geothermal Development Project marks a major advancement in sustainable development, providing environmental benefits, economic growth, and greater energy security for the nation.