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Regardless, one of the biggest challenges for geothermal development in Saint Lucia is that the Sulphur Springs area is within a UNESCO World Heritage Site. There are limits to development that can be carried out within a World Heritage Site, and the World Heritage Committee advises “that power generation not be developed in the Sulphur Springs.”419 Developing a geothermal plant in Sulphur Springs could put the status of Saint Lucia’s World Heritage Site in jeopardy. In 2010, the government carried out its most recent effort to develop its geothermal resources. It signed a 30-year concession contract to develop the geothermal resource with UNEC, a subsidiary of Qualibou Energy Inc. A condition of maintaining the concession rights was that drilling must occur within 18 months of the concession signing date in 2010.420 Since UNEC did not complete the drilling required, the government allowed Ormat to conduct exploration of the resource. Ormat would have to pay royalties to UNEC for using the exploration rights. In 2015, Ormat started surface exploration, carrying out 3G studies and slim-hole drilling. 15.2.2 Planned project In 2014, the government restarted its efforts to explore and develop geothermal energy in the country and in 2015 began surface exploration.421 The government and Ormat have an agreement in place to carry out the exploratory stage and have made significant progress to agree on a maximum PPA rate with LUCELEC.422The parties have not signed any agreements for the later stages of geothermal development (production drilling and power plant construction). If exploratory drilling confirms the geothermal resource, the government would need to design and agree on a project structure for a 20–30 MW plant, reach an agreement with a project developer, and finalize guarantees on the PPA. LUCELEC has expressed its willingness to reach an agreement on the PPA.423 Figure 15.3 shows the government’s progress in developing the project. 419. Judith Ephraim, “Geothermal Development in Saint Lucia” (Costa Rica Study Tour: March 2014). 420. David McFadden, “Saint Lucia: Geothermal Energy Planned for Volcanic Caribbean Island,” The Huffington Post, July 26, 2010, accessed May 22, 2013, http://www.huffingtonpost.com/2010/07/27/st-lucia-geothermal-energ_n_660401.html (no longer available). 421. “St. Lucia Receives $2.8 mn for Geothermal Project,” Fox News Latino, December 16, 2014, accessed January 5, 2015, http://latino. foxnews.com/latino/news/2014/12/16/st-lucia-receives-28-mn-for-geothermal-project/; “St Lucia Installs Test Tower for Potential Wind Farm,” Caribbean 360, April 17, 2015, accessed December 4, 2015, http://www.caribbean360.com/business/st-lucia-installs- test-tower-for-potential-wind-farm. 422. “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/#. 423. LUCELEC, “LUCELEC Welcomes GOSL’s Efforts to Evaluate Geothermal Resource,” February 13, 2014, accessed December 4, 2015, https://www.lucelec.com/content/lucelec-welcomes-gosls-efforts-evaluate-geothermal-resource. 178PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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