Dominica signs agreement for advancement of geothermal power plant

Roseau, Dominica: The Government of Dominica and Dominica Electricity Services (DOMLEC) have signed an agreement with Ormat Technologies Inc. and its subsidiaries for the development of a Geothermal Power Plant.

The agreement was signed on Tuesday, December 5, 2023, on the margins of COP28 inGovernment of Dominica Dubai, United Arab Emirates, for the advancement of a 10 MW geothermal power plant in Laudat.

Notably, Ormat Technologies Inc. is a US-based company.

Representatives of participating countries

– Vince Henderson, as the Minister of Foreign Affairs, International Business, Trade and Energy, signed an agreement on behalf of the Government of Dominica.

– Ambassador Francine Baron is the Director and Board of Directors of DOMLEC, and it was signed on behalf of the power company.

– The Vice President of Business Development, Paul Thomsen, has endorsed the accord on the account of Ormat Technologies Inc. and its subsidiary company.

Key takeaways of the agreement

Many objectives are supposed to be achieved through this alliance of the Dominican government and DOMLEC, as under this agreement, Orman Technologies Inc. will help finance the construction of the plant.

They will further operate and maintain the power plant and geothermal wells for a period of 25 years. The Government of Dominica will manage the ownership of the wells, lands, and assets that it has been invested in.

It is to be noted that when they reach to the end of the contracted period, the power plant and other advantages attained during the life of the agreement will be transferred to the Government of Dominica.

This initiative will boost the stability of the island nation as the development represents a major milestone for Dominica, whose government is looking to stabilize and decrease the domestic electricity tariff.

Notably, it will decarbonize electricity generation and the responsible use of Dominica’s rich geothermal resources.

The electricity which will be generated through the electricity is supposed to be sold to DOMLEC and will help in reducing Dominica’s dependence on fossil fuels.

It is to be added in accordance with the agreement that the power plant is expected to be enlisted by the end of 2025, along with further capacity expansion, which is planned for the near future.

Dominica’s partnership with Ormat Technologies Inc

Dominica’s partnership with Ormat Technologies is expected to be highly fruitful as the island nation has chosen a leading geothermal company. Notably, the US-based company has been in the electricity industry for 50 years.

It is to be noted that this international company possesses the added advantage of manufacturing much of its own equipment.

About the US-based company

Ormat Technologies company currently owns or has installed approximately 3,200 MW of gross capacity globally, and it operates the geothermal power plant in the neighbouring island of Guadeloupe.