The Dominica Government and the Dominica Electricity Services (DOMLEC) have inked an agreement with Ormat Technologies Inc., a US company and its subsidiaries for the development of a 10MW geothermal power plant in Laudat.
It is to be noted that, the agreement was inked on Tuesday, on the outskirts of COP28, taking place in Dubai, United Arab Emirates. Under this agreement, Ormat Technologies Inc. will be financing the construction of the plant, including the maintenance and operation of the power plant and geothermal wells for over 25 years while the Government of Dominica will be maintaining the ownership of the wells, lands and other assets that it has invested in.
Whereas, when the contract will end, the power plant and the other assets acquired during the life of the agreement will be transferred to the Government of Dominica.
Notably, this development highlights a major milestone for the Government of Dominica, as it is looking for stabilizing and reducing the domestic electricity tariff, decarbonize electricity generation and undertaking the responsible use of Dominica’s rich geothermal resources.
The generated electricity will then be sold to DOMLEC and will help in reducing the dependence of Dominica on fossil fuels. The power plant is expected to be commissioned by the end of 2025, with further capacity expansion planned for the near future.
It is to be hereby added that, the Minister of Foreign Affairs, International Business, Trade and Energy, Vince Henderson signed on behalf of the Government of Dominica, Ambassador Francine Baron, Director, Board of Directors of DOMLEC, signed on behalf of the power company and Paul Thomsen, Vice President of Business Development, signed on behalf of Ormat Technologies Inc. and its subsidiary company.
At the same time, the Minister of Foreign Affairs of Dominica, Dr Vince Henderson, has also congratulated the people of Dominica and ensured that the government will be committed towards the goal mainly for the welfare of the people.