The Government of Dominica and Dominica Electricity Services (DOMLEC) have entered into an agreement with Ormat Technologies Inc. for the development of a ten MW geothermal power plant in Laudat.
The deal signed at COP 28, aims to stabilise electricity tariffs, reduce dependence on fossil fuels, and responsibly harness the island’s rich geothermal resources.
Contract details
The agreement, signed on 5 December 2023, during COP 28 in Dubai, stipulates that Ormat Technologies Inc. will finance, construct, operate, and maintain the power plant and geothermal wells for 25 years.
However, Dominica will retain ownership of invested assets, including wells, lands, and others.
At the contract’s conclusion, the power plant and acquired assets will be transferred to the Government of Dominica.
Partnership selection
Dominica has chosen to collaborate with Ormat Technologies Inc., a leading geothermal company with over 50 years of experience.
Notably, the company manufactures much of its equipment, currently owning or installing approximately 3,200 MW of gross capacity globally.
Ormat also operates a geothermal power plant in the nearby island of Guadeloupe.
The agreement was signed by Vince Henderson, the Honourable Minister for Foreign Affairs, International Business, Trade, and Energy, on behalf of the Government of Dominica.
Ambassador Francine Baron, Director of the Board of Directors of DOMLEC, on behalf of the power company.
And Paul Thomsen, Vice President of Business Development, on behalf of Ormat Technologies Inc. and its subsidiary company.
Purpose and strive for sustainability
Project objectives
The agreement signifies Dominica’s commitment to renewable energy, aiming to reduce electricity costs, lower carbon emissions, and maximise the utilisation of the country’s natural geothermal resources.
Environmental impact
The operational geothermal plant, expected to be commissioned by the end of 2025, is poised to significantly decrease Dominica’s reliance on fossil fuels, contributing to a more sustainable energy landscape.
Ormat’s expertise
Ormat Technologies, with over five decades of experience, is a leading geothermal company with a diversified portfolio spanning geothermal, recovered energy generation, energy storage, and solar PV projects worldwide.
Doron Blachar, CEO of Ormat Technologies, emphasises the shared vision with DOMLEC and the Government of Dominica for a greener and more sustainable future.
The company’s current total generating portfolio is 1,285 MW, contributing to its commitment to sustainable and resilient energy solutions.
The project, set to be operational by the end of 2025, follows Dominica’s successful geothermal reservoir development.
Ormat plans to finance the project through concessional long-term debt issuance. It aims to strengthen its Caribbean presence by leveraging operational synergies with an existing plant in Guadeloupe.
The company envisions extending its technology to neighbouring islands, displacing fossil fuels in the region’s electricity generation.
Prior Milestones Developments
A contract with the Iceland Drilling Company for two additional wells was signed in mid-2022. By that time, construction work on well pads and access roads are already in progress.
Dominica’s Minister for Planning, Economic Development, Climate Resilience, Sustainable Development, and Renewable Energy, Dr Vance Henderson, confirmed the completion of drilling for one geothermal well.
Earlier this year, the Government commenced drilling activities to gradually move into the construction phase for the power plant.
The environmental and social impact assessment study is ongoing, and designs for transmission lines are completed.
