Italy’s FER2 Auction Approves Two Zero‑Emissions Geothermal Projects — What It Means for the Market Overview: FER2’s first geothermal auction and the winners Italy’s FER2 incentive mechanism — established by the Ministry of the Environment and Energy Security (MASE) to stimulate renewable investment through long‑term Contracts for Difference (CfDs) — has completed its first geothermal tender, awarding favourable rankings to two zero‑emissions projects with a combined capacity of 29.4 MW. The auction aimed to allocate a dedicated 30 MW quota for geothermal plants that operate with no net emissions, and it selected: - Pola 1: a 24.4 MW project in Jolanda di Savoia, Ferrara. - ITW & LKW Geotermia Italia: a 5 MW plant in Castel Giorgio, Terni. Two other bids — a 12.69 MW project in Castelnuovo di Val di Cecina by Magma Energy Italia and a 5 MW proposal in Monterotondo Marittimo from Enel Green Power Italia — were excluded from the final rankings. The FER2 framework sets explicit timeli...
UK Allocates £10 Million to Accelerate Grenada’s Green Energy Transition
By: Robert Buluma
Grenada has received a significant boost in its journey toward sustainable energy solutions, thanks to a £10 million investment from the UK government. The announcement was made during a meeting between Baroness Chapman, the UK Minister for Latin America and the Caribbean, and Grenadian Prime Minister Dickon Mitchell in St. George’s.
This funding will be directed toward Grenada’s Geothermal Energy Development Project, which aims to explore the viability of the country’s geothermal resources. If successful, this initiative could reduce Grenada’s heavy reliance on imported fossil fuels and lay the groundwork for locally sourced, cost-effective, and climate-resilient energy solutions.
A Major Step Toward Energy Independence
Baroness Chapman emphasized the importance of this investment, stating, *“I am thrilled to announce £10m in new funding, which is supporting Grenada’s efforts to reduce its reliance on fossil fuels and transition to a more sustainable, locally sourced energy future. The investment in geothermal energy will not only help to lower energy costs for households and businesses, but will also lead to lower carbon emissions, an essential step in tackling the climate crisis.”
For Caribbean nations like Grenada, which heavily depend on expensive imported fossil fuels, this investment comes at a crucial time. The average Caribbean household pays double the energy costs of consumers in the United States, a burden that stifles economic growth and leaves the region vulnerable to global energy price fluctuations.
Prime Minister Mitchell expressed gratitude for the UK’s support, saying, “This funding will allow us to assess the geothermal potential of Grenada and take further steps toward building a clean, sustainable, and more affordable energy system for our country. We are excited about the possibilities this project holds for our country’s future.”
Unlocking Grenada’s Geothermal Potential
The £10 million investment will fund critical assessments of geothermal resource viability, including drilling rotary exploratory wells. This phase is vital for de-risking the project and attracting private sector investments. Successful exploration could lead to the establishment of a geothermal power plant capable of displacing up to 55% of Grenada’s electricity generation from diesel, significantly enhancing energy security and reducing tariffs for businesses and households.
Geothermal energy presents vast untapped potential in the Caribbean. However, high upfront exploration costs remain a significant barrier to private investment. Public funding, such as this, is essential to jumpstart geothermal initiatives, paving the way for greener and more affordable energy solutions.
A Broader Commitment to Climate Action
This announcement is part of a larger £19.3 million renewable energy initiative by the UK across six Caribbean countries, including Grenada, Antigua and Barbuda, Dominica, Saint Lucia, and St. Vincent and the Grenadines. Since 2015, the UK has supported renewable energy and energy efficiency projects across the region.
Baroness Chapman reiterated the UK’s dedication to combating climate change globally, stating, “Partnerships like this drive progress on the global ambition needed to keep global warming to no more than 1.5 degrees as called for by the Paris Climate Agreement.”
A Green Energy Future for Grenada
Grenada’s geothermal project represents an opportunity to transition to a clean energy future while addressing pressing economic challenges. By reducing dependence on fossil fuels and fostering energy independence, the country can make strides toward a sustainable and climate-resilient economy.
This collaboration between the UK and Grenada highlights the importance of international partnerships in achieving green energy goals. With continued investments in renewable energy, Grenada is poised to become a model for sustainability in the Caribbean region.
With the latest findings from International Energy Agency, Its evident Geothermal is poised to be the most sought after source of clean and sustainable energy.
This is a key moment for Grenada and the Caribbean as a whole. As Grenada embarks on this transformative journey, the success of this project could inspire similar initiatives across the region. What do you think about Grenada’s geothermal energy potential?
Source:Leslie Smith on LinkedIn
All major ocean island have great geothermal potentia. If deloped the population will have free energy, green hydrogen and plenty of fresh water for agriculture. They can be green hydrogen hubs with global connectivity. Good opportunity for sustaiable development. Want to know more? connect at dchandra50@gmail.com
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