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Although geothermal resources are abundant on several of theislands,apartfromGuadeloupewhichhasa4.5MWe binary plant, geothermal development is still in the early stages for several reasons: 1. Geothermal development is not a priority in the energy policies of the island governments. Traditionally, the islands have depended on diesel generation, with the exception of Dominica which has hydroelectric power. 2. None of the countries have geothermal laws; many do not have laws for the regulation of the electricity sector in particular. geothermally generated power could be provided for a lowercostthantheutilitiesnowpayin-house. Inmany countries, O&M- caused brownouts or power outages are all too common and are reportedly on the increase (Huttrer, 1998). Forexample,Dominicareported50outagesin 1997; Grenada, 11 to 50; Jamaica, 10 to 50; St. Kitts & Nevis, 10; St. Lucia, 10 to 50; and St. Vincent & the Grenadines, 11 to 25 (Vimmerstedt, 1998). Some negative aspects or obstacles regarding initiation of Caribbean small geothermal power projects are: 1. The difficulty in financing small (<$50 million) projects. 2. The relatively low rate of return likely on small Caribbean geothermal power projects and the associated need to minimize exploration expenditures which unavoidably will increase the risk level perceived by potential investors. 3. The speckled history of fiscal responsibility on the part of the governments of several of these islands and their consequent low international credit ratings. 4. The marginal solvency of many of the national utility companies and the inability or 3. Limited financing and the high cost of geothermal exploration has held back projects in the feasibility stage. 4. There are no economic incentives for geothermal development. 5. The population, and consequently the markets, of the islands, are small. While none of the utility companies have an accurate accounting of their real costs, it seems very likely that the Geothermal Resources in Latin America & the Caribbean 96PDF Image | Geothermal Resources in the Caribbean and Latin America
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