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as the French Development Agency (FDA) and the European Development Fund (EDF).42 Initial drilling results in Dominica have been promising, and the country recently signed a memorandum of understanding with the International Finance Corporation (IFC) for US$ 250,000 of initial funding for geothermal development there.43 Opportunities for geothermal development exist elsewhere in the Caribbean. In April 2012 the government of Montserrat announced that it entered into a MOU with the United Kingdom’s Department for International Development for financial support for geothermal exploration drilling over the next year.44 El Salvador Geothermal energy plays an important role in El Salvador, generating approximately 24 percent of the country’s electricity. Still, El Salvador is primarily dependent on thermal generation from imported oil for the majority of its electricity (approximately 44 percent of total generation in 2009), making it vulnerable to volatility in fossil fuel prices.45 Figure 2: Installed Generation Capacity in El Salvador (MW) Source: World Bank Substantial geothermal resources, in-country geothermal expertise, and a supportive regulatory environment put El Salvador in a position to replace thermal generation from imported oil with geothermal energy. Estimates of El Salvador’s geothermal potential range from 362 MW to 2,210 MW, indicating that potential for expansion of the resource is substantial.46 El Salvador has also developed the in country expertise to ramp up development of its geothermal resources in the near-term. Additionally, the country recently received a US$ 2 million grant from the Inter-American Development Bank to found an international geothermal training center for Latin America and the Caribbean, which will help train representatives from El Salvador and countries throughout the region to develop and operate geothermal facilities.47 Geothermal development in El Salvador falls under the purview of state owned La Geo, a mixed capital enterprise partnership between the Salvadoran government and Italian power company Enel. La Geo has experience in exploring for and developing El Salvador’s geothermal resources, and is also able to draw upon the expertise and financial resources of Enel. Additionally, planning for the accommodation of new generation capacity in El Salvador is the responsibility of the National Energy Council, which May 2012 109 204 486 16 626 Diesel Hydro Geothermal Cogeneration Gas Turbine 10PDF Image | Geothermal International Market Report
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