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Ormat Secures USD 50M to Power Dominica’s First Geothermal Plant

Dominica’s Clean Energy Leap: Ormat Secures USD 50M for First Geothermal Plant

Posted on August 19, 2025

By Robert Buluma

In a groundbreaking stride for renewable energy in the Caribbean, Ormat Technologies Inc. clinched USD 50 million in project financing for Dominica’s first-ever geothermal power plant, marking an unprecedented milestone for the region’s clean energy ambitions.

Financing & Strategic Backing

The funds come courtesy of the Caribbean Development Bank (CDB) and the CARICOM Development Fund (CDF), with legal advisory provided by Arnold & Porter. This transaction represents the first project financing of a geothermal facility in the Caribbean a landmark for the region’s renewable energy sector.

Project Overview

  • Capacity & Cost: The initiative entails building a 10 megawatt (MW) geothermal plant in Dominica’s scenic Roseau Valley, with total projected costs nearing USD 62 million.
  • Development Structure: Structured under a concession agreement with the Commonwealth of Dominica and supported by a long-term Power Purchase Agreement (PPA) with the local utility DOMLEC.

What This Means for Dominica

Once operational anticipated by January 2026 the plant is expected to produce over 63% of the country’s electricity from clean, renewable sources. That’s a quantum leap toward energy security, slashing reliance on imported diesel, lowering costs, and driving down carbon emissions.

The Bigger Picture: A Wake-Up Call for Clean Energy in the Caribbean

Historically, Dominica has depended heavily on imported diesel over 90% of its energy needsresulting in significant economic and environmental costs. The island sits atop substantial geothermal potential: studies estimate this could surpass current peak demand (roughly 18 MW) by up to 50 times.

This new financing builds on earlier moves, including a USD 34.8 million loan approved in December 2024 under the CDB’s GeoSmart Initiative aimed at bringing this vision closer to fruition.

Why This Matters

  • Replicable Model: Dominica’s project sets a promising example for other Caribbean nations and beyon on how tailored public finance, concession-based structures, and solid PPAs can de-risk and attract private investment into geothermal energy.
  • Climate Strategy in Action: The shift underscores the region’s commitment to reducing fossil fuel dependency, combating climate change, and enhancing resilience.

Ormat’s USD 50 million financing deal for Dominica’s geothermal project is not just an investment it's a beacon of sustainable hope. Poised to deliver clean, reliable energy while shrinking carbon footprints and stabilizing electricity costs, this is a pivotal moment for clean energy in the Caribbean and a compelling model for green transitions globally.

Source; Renewables

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