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12 Dominica The geothermal resources in Dominica are proven and the government has identified a two-phase approach for developing them. Of the countries in our study, Dominica has advanced the furthest in the exploration of its geothermal resources. It has carried out exploratory drilling and has developed an 11 MW production well. The government is now in the process of looking for private companies who are interested in developing the geothermal resources. The government plans to develop its geothermal resources using a two-phase approach that uses private sector participation. In the first phase, it will develop a 10.5 MW geothermal power plant, which will provide electricity to meet domestic demand. In the second phase, it will develop a 100–120 MW geothermal power plant and interconnection cables for exporting electricity to Martinique and Guadeloupe. The government currently does not have any commercial agreements with a project developer to develop these plants. The next steps are for the government to identify a suitable project developer who will construct the geothermal power plant for Phase 1 and carry out the feasibility study for Phase 2. In addition, the government should pass legislation that clearly defines the framework for governing geothermal resources. Also, the multilateral development banks could play an active role in this project by providing funding for Phase 1 and technical support, grants, contingent grants, and concessionary loans for Phase 2. For the project to be eligible to access multilateral funding, the project and/or the works and services would probably need to be procured competitively. The planned project and possible role for the multilateral development banks is described in more detail in the following sections: • Overview of the Electricity Sector in Dominica (Section 12.1) • Status of Geothermal Development (Section 12.2) • Recommended Financial and Legal PPP Structure for Phase 1(Section 12.3) • Recommended Financial and Legal PPP Structure for Phase 2 (Section 12.4) • • 12.1 Recommended Changes to the Legal, Institutional, and Regulatory Framework (Section 12.5) Economic and Financial Analysis of the Geothermal Project (Section 12.6) Overview of the Electricity Sector in Dominica Dominica Electricity Services Ltd. (DOMLEC), a vertically integrated state-owned electricity utility, has an exclusive license to provide electricity in Dominica. The Electricity Supply Act of 2006 establishes the structure of the electricity sector and creates the sector regulator, the Independent Regulatory Commission (IRC). The IRC is overseen by the Ministry of Public Works, Energy, and Ports which is also responsible for developing policies for geothermal development.219 The government has drafted, but not yet approved, the Draft National Energy Policy (2014), the Draft Sustainable Energy Plan (2014), and the Geothermal Resources Bill (2013). These documents describe the government’s goals and actions for developing a more economical, more reliable, and less-polluting energy sector. 219. Government of Dominica: Ministry of Public Works, Energy, and Ports, accessed October 31, 2014, http://publicworks.gov.dm/. 99PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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