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Neither GRENLEC nor the government has published cost estimates for developing a 10 MW geothermal plant. Cost estimates vary significantly, which reflects the uncertainty about the quality of Grenada’s geothermal resource. Preliminary estimates suggest that a 10 MW geothermal power plant on Grenada could cost about US$87 million.302 This estimate includes all stages, from surface exploration to production drilling and construction of the power plant. The cost of construction of the power plant is US$45 million. The construction of transmission lines and access roads would increase the total cost to about US$102 million. West Japan Engineering Consultants, Inc. estimated the cost of building a prototype 20 MW power plant to be US$40 million. Their cost estimate increases to US$125 million when costs for production drilling, physical contingency, and consultant fees and administrative expenses are included.303 The government would need to determine the size and quality of the geothermal resource to accurately estimate the costs of the project. 302. Financial model that accompanies this report, based on information from: Magnus Gehringer and Victor Loksha, Geothermal Handbook: Planning and Financing Power Generation (Washington, DC: The International Bank for Reconstruction and Development, Technical Report 002/12, June 2012), accessed October 22, 2014, http://www.esmap.org/sites/esmap.org/files/DocumentLibrary/FINAL_ Geothermal%20Handbook_TR002-12_Reduced.pdf; IDB, “Sustainable Energy Facility (SEF) for the Eastern Caribbean: Loan Proposal RG-L1071, RG-G1009, and RG-G1004” (2015), accessed December 2, 2015, http://www.iadb.org/en/projects/project-description-title,1303. html?id=RG-L1071. 303. West Japan Engineering Consultants, Inc., “Study on Current Status of Geothermal Development in the Eastern Caribbean Islands: Field Trip Report and Study Tour in Costa Rica,” March 2014. 131PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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