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Dominica Signs Agreement for 10MW Geothermal Plant Development with Ormat Technologies Inc (FILE)
"Discover how Dominica has signed an agreement with Ormat Technologies Inc. for the development of a 10MW geothermal plant, aiming to reduce dependence on fossil fuels and stabilize electricity costs."
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Originally published by www.nationnews.com (opens in new tab)
Dubai – Dominica has signed an agreement with the US-based Ormat Technologies Inc. and its subsidiaries for the development of a 10megawatt (MW) geothermal plant on the island.
The agreement, which also includes 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 construction of the plant, operate and maintain the power plant and geothermal wells for a period of 25 years, while the Dominica government 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.
Government said that this development represents a major milestone for the island as it 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.
The authorities said that 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 French island of Guadeloupe. (CMC)
