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Introduction This document presents strategy for developing geothermal potential through public-private partnerships (PPPs) in the Eastern Caribbean. The five countries of study are Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, and Saint Vincent and the Grenadines. The objective of this study is to perform the required analyses to recommend a strategy for developing geothermal energy projects through PPPs in the Eastern Caribbean (the region), considering legal and financial issues. The analyses conducted for each country include the following: • Assessing the policy and regulatory framework to propose necessary changes to enable geothermal development • Assessing the status of geothermal development to build on the work that is already done • Proposing the financial and legal structure of the geothermal projects • Assessing the economic and financial viability of the geothermal projects Based on these analyses, the authors propose a strategy for developing geothermal projects through PPPs and assess its expected benefits. Throughout this document, the authors are referred to as “we.” This document is divided into three parts. In Part A, we present the factors that enabled geothermal development in key geothermal markets, specifically Costa Rica, Nicaragua, El Salvador, the United States, Kenya, Iceland, and Guadeloupe. For each of these cases we present an overview of the electricity sector and the potential for developing geothermal resources, explain the most notable geothermal projects, and identify the key factors that enabled those projects to come about. In Part B, we present the strategy to develop geothermal projects through PPPs in the five Eastern Caribbean countries with geothermal potential. We first present the barriers faced by governments in implementing geothermal projects and then present the proposed approach to address these barriers and deploy geothermal energy. Specifically, we explain how developing geothermal projects through PPPs and establishing a geothermal risk mitigation fund addresses the barriers to implementing geothermal projects. We also describe the major characteristics of the geothermal risk mitigation fund and an overview of the risks faced in implementing the PPP strategy. Finally, we present the economic and financial benefits that would result from implementing the geothermal projects. Part B is organized as follows: • Barriers to Geothermal Development in the Eastern Caribbean States (Section 9.1) • Proposed PPP Strategy for Geothermal Development (Section 9.2) • Expected Economic and Financial Benefits of Implementing the Proposed Strategy (Section 9.3) In Part C, we present the development of geothermal resources in the Eastern Caribbean countries. We start with an overview of geothermal development in the five countries of study, and then we present our analysis of each of the countries. For each country, we present the main characteristics of the electricity sector and the status of geothermal development. We then present our recommendations for the design of a PPP structure for the geothermal projects and the changes to the legal, institutional, and regulatory framework required to implement the proposed PPP structures. Finally, we assess the economic and financial viability of the geothermal projects. 1 11PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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