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Phase 2: 100–120 MW power plant to export electricity to Martinique and Guadeloupe The second phase of the project will be a second power plant of 100–120 MW to export electricity to Martinique and Guadeloupe. This phase of the project would include production drilling and the construction and operation of the power plant. The power plant would be completed in two stages (each of 50–60 MW) after Phase 1 of the project has been completed. The electricity sectors in Guadeloupe and Martinique are large enough to likely absorb over 50 MW of geothermal capacity. Both countries have relatively high peak demand—about 284 MW in Guadeloupe and 281 MW in Martinique.256 In addition, electricity produced from geothermal resources in Dominica is expected to be the least-cost source of generation for each of these systems (although this will largely depend on the cost of the undersea interconnection cables). The government has not defined a structure for financing, building, and operating the power plant. However, the consortium led by GDF Group expressed interest in developing the larger power plant after it completes Phase 1 of the project.257 Since EDF would be the off-taker for exported electricity, a PPA with EDF would be needed to successfully develop the project. The French government has stated that EDF intends to purchase geothermal power from Dominica.258 The estimated cost of this project varies significantly. In 2014, West Japan Engineering Consultants, Inc. estimated the cost of the entire project to be between US$300 million and US$531 million. This estimate includes the cost to develop the power plant and the cost of building interconnection cables to Martinique and Guadeloupe.259 On the other hand, the Government of Dominica presented an estimated cost of the power plant alone of US$439 million.260 Since the estimated cost of this project is about the size of Dominica’s GDP, it would need support from donors and the private sector to finance this project. The government’s next steps include completing the feasibility studies for the project—both on the undersea interconnection cable and on the power plant itself. The government is planning to complete a feasibility study for building an undersea interconnection cable between Dominica, Guadeloupe, and Martinique.261 The European Investment Bank has agreed to finance this feasibility study.262 The feasibility study is expected to be completed in two to three years.263 256. Nexant, Caribbean Regional Electricity Generation, Interconnection, and Fuels Supply Strategy (March 2010), accessed April 27, 2015, http://www.caricom.org/jsp/community_organs/energy_programme/electricity_gifs_strategy_final_report_summary.pdf. 257. “French Consortium Plans to Revive Large Project in Dominica,” ThinkGeoEnergy, April 15, 2014, accessed December 3, 2014, http://www.thinkgeoenergy.com/french-consortium-plans-to-revive-large-project-in-dominica/. 258. “French AFD Prepared to Finance 15MW Project in Dominica,” ThinkGeoEnergy, July 3, 2013, accessed December 3, 2015, http:// www.thinkgeoenergy.com/french-afd-prepared-to-finance-15-mw-project-in-dominica/. 259. Japan International Cooperation Agency and West Japan Engineering Consultants, Inc., “Study of Situation for Geothermal Energy Development” (April 2014). 260. Government of Dominica, “Geothermal: The Next Generation” (The Caribbean Renewable Energy Forum, March 2014). 261. Government of Dominica, “Geothermal: The Next Generation” (The Caribbean Renewable Energy Forum, March 2014). 262. Anelda Maynard-Date and Alexis George, “Geothermal Status, Progress and Challenges in the Eastern Caribbean Islands” (presented at Short Course V on Conceptual Modelling of Geothermal Systems, organized by UNU-GTP and LaGeo, in Santa Tecla, El Salvador, February 24–March 2, 2013), accessed October 31, 2014, http://www.os.is/gogn/unu-gtp-sc/UNU-GTP- SC-16-05.pdf. 263. Japan International Cooperation Agency and West Japan Engineering Consultants, Inc., “Study of Situation for Geothermal Energy Development” (April 2014). 107PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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