Unlocking Geothermal Power Eastern Caribbean Powerhouse

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10.2.2 Progress in developing geothermal resources in the Eastern Caribbean The development of geothermal resources in the five countries in our study is at different stages. None of the countries has developed a geothermal power plant yet. The two countries that have advanced the most towards exploiting their geothermal potential are Dominica and Saint Kitts and Nevis. The other three countries have not made as much progress in exploring and exploiting their geothermal resources, although Saint Vincent and Saint Lucia have secured a private partner to develop the resources. Dominica and Saint Kitts and Nevis have the most developed geothermal resources. Dominica has advanced the furthest; it completed production well drilling for a plant to meet domestic demand in March 2014.146 However, Dominica has been unable to finalize an agreement with a developer to construct a geothermal plant. In Nevis, slim-hole drilling that was completed in 2008 estimates that Nevis has a resource large enough to meet national baseload demand.147 Nevis has made progress in securing a partner to develop its resources. In September 2014, the NIA signed a concession agreement with a private developer to construct a geothermal power plant.148 In November 2015 the private developer and NEVLEC signed a PPA and exploratory drilling is expected to begin in 2015 or early 2016.149 Saint Vincent completed surface exploration in 2015 that suggests a high-quality resource and has reached agreements with its private partners.150 The pre-investment studies were carried out by Light and Power Holdings (majorly owned by Emera) and Reykjavik Geothermal. Negotiations to finalize the business plan presented by the private partners were carried out in August 2015.151 Project developers expect to begin drilling in the second quarter of 2016.152 Saint Lucia and Grenada have not made as much progress in exploiting their geothermal resources. Grenada and Saint Lucia have not moved beyond surface exploration. In Grenada, pre-investment studies were completed in July 2015. They were funded by the New Zealand Aid Programme as a result of an agreement signed by the Foreign Affairs and Trade Minister Murray McCully in June 2014 to help Grenada and Saint Lucia develop their geothermal potential.153 In July 2015, the government presented the results of the pre-investment studies to potential project developers to start developing a roadmap.154 Similar works are being carried out in Saint Lucia. On this island, the government has carried out extensive exploratory work, but the results have not confirmed a commercially viable resource and more surface exploration is in progress. The government has partnered with Ormat for developing the geothermal resources, but specific agreements are still being discussed.155 146. Japan International Cooperation Agency and West Japan Engineering Consultants, Inc., “Study of Situation for Geothermal Energy Development” (April 2014). 147. Kerry McDonald, “Federation of Saint Kitts and Nevis: First Geothermal Powered Nation in the World” (West Indies Power, 2011), accessed September 26, 2013, http://ciemades.org/pdfs/conf11/may6/Nevis-Geothermal_K_MacDonald.pdf. 148. “Nevis Administration and NREI Sign Geothermal Concession Agreement,” ThinkGeoEnergy, September 5, 2014, accessed October 29, 2014, http://www.thinkgeoenergy.com/nevis-administration-and-nrei-sign-geothermal-concession-agreement/. 149. “State Department Applauds Model Geothermal Power Purchase Agreement Signed in Nevis,” U.S. Department of State, November 25, 2015, accessed December 2, 2015, http://www.state.gov/r/pa/prs/ps/2015/11/250002.htm. 150. “St. Vincent & the Grenadines Outline Progress on Geothermal Work,” ThinkGeoEnergy, July 16, 2015, accessed December 2, 2015, http://www.thinkgeoenergy.com/st-vincent-the-grenadines-outline-progress-on-geothermal-work; Ellsworth Dacon, “St. Vincent’s Geothermal Development Approach,” I-Witness News, May 10, 2015, accessed September 16, 2015, http://www.iwnsvg. com/2015/05/10/st-vincents-geothermal-development-approach/. 151. Ellsworth Dacon, “Presentation: Geothermal Development in Saint Vincent and the Grenadines” (August 3, 2015, Malaysia), accessed December 3, 2015, http://www.irena.org/EventDocs/S5_Ellsworth_Dacon_St.Vincent_Malaysia_Presentation.pdf. 152. “St. Vincent Geothermal Project On Track to Start-Up in 2018,” Caribbean News Now, July 22, 2015, accessed December 2, 2015, http://www.caribbeannewsnow.com/headline-St-Vincent-geothermal-project-on-track-to-start-up-in-2018-26989.html; Ellsworth Dacon, “Presentation: Geothermal Development in Saint Vincent and the Grenadines” (August 3, 2015, Malaysia), accessed December 3, 2015, http://www.irena.org/EventDocs/S5_Ellsworth_Dacon_St.Vincent_Malaysia_Presentation.pdf. 153. “NZ Firm Testing Caribbean Geothermal Resource,” New Zealand Energy News, April 2015; “St. Lucia, New Zealand Sign Geothermal Support Partnership Agreement,” Caribbean News Now, September 3, 2014, accessed May 23, 2016, http://caribbeannewsnow. com/topstory-St-Lucia,-New-Zealand-sign-geothermal-support-partnership-agreement-22625.html. 154. Government of Grenada, “Results of Geothermal Study to Be Presented,” July 29, 2015, accessed December 2, 2015, http://www.gov.gd/egov/news/2015/jul15/29_07_15/item_1/results-geothermal-study-presented.html. 155. “St. Lucia Says Geothermal Exploration Will Begin in 2015,” Caribbean Journal, December 18, 2014, accessed December 2, 2015, http://caribjournal.com/2014/12/18/st-lucia-says-geothermal-exploration-will-begin-in-2015/#. 79

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