Dominica Government Signs Agreement for Development of Geothermal Power Plant
The Government of Dominica and the Dominica Electricity Services (DOMLEC) have signed an agreement with Ormat Technologies Inc., a US company and its subsidiaries for the development of a 10 MW geothermal power plant in Laudat.
The agreement was signed on Tuesday, December 5, 2023 on the margins of COP 28 in Dubai, United Arab Emirates.
Under the agreement, Ormat Technologies Inc. will finance the construction of the plant, operate and maintain the power plant and geothermal wells for a period of 25 years. While the Government of Dominica will maintain ownership of the wells, lands and other assets that 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.
This development represents a major milestone for Dominica as Government seeks to stabilize and reduce the domestic electricity tariff, decarbonize electricity generation and the responsible use of Dominica’s rich geothermal resources. The electricity generated will be sold to DOMLEC and will 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.
In partnering with Ormat Technologies Inc., Dominica has chosen a leading geothermal company with over 50 years’ experience in the industry and one that possesses an added advantage of manufacturing much of its own equipment.
The company currently owns or has installed approximately 3,200 MW of gross capacity globally, and operates the geothermal power plant in the neighbouring island of Guadeloupe.
The Honourable Vince Henderson, Minister for Foreign Affairs, International Business, Trade and Energy signed on behalf of the Government of Dominica, Ambassador Francine Baron, Director, Board of Directors of DOMLEC, signed on behalf of the power company and Paul Thomsen, Vice President of Business Development, signed on behalf of Ormat Technologies Inc. and its subsidiary company.
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Signing with Ormat Technologies for the geothermal plant raises questions. What about the previous agreements and the millions already invested? Are we seeing a new direction, or is this another layer to the ongoing energy puzzle in Dominica?