The Caribbean Development Bank (CDB) has reached financial close on the landmark Dominica Geothermal Energy 10MW Project, marking the first geothermal project in the region to reach this stage with a private sector partner. The facility will be implemented by the Geothermal Power Company of Dominica (GPC), a wholly owned subsidiary of Ormat Technologies Inc, a leading international geothermal developer.
Mr. Isaac Solomon, CDB Vice President of Operations, described the project as “a pivotal transaction for the Bank, for the Commonwealth of Dominica, and for the region. It showcases the potential of blended concessional finance to mobilise private sector expertise and deliver transformative clean energy solutions in small island developing states.”
The 10MW plant is being developed as a private sector-led initiative, with CDB as lead financial arranger. The project has secured USD 34.8 million in concessional funding: USD 25.4 million from the Green Climate Fund (GCF) through the Inter-American Development Bank (IDB)-GCF Sustainable Energy Facility for the Eastern Caribbean program, and USD 9.4 million from Canada’s Supporting Resilient Green Energy Initiative in the Caribbean (SuRGE) programme. The CARICOM Development Fund (CDF) is contributing USD 15 million in loan financing as part of its Country Assistance Programme for Dominica.
Highlighting the project’s regional significance, CDF CEO Rodinald Soomer said, “It leverages Dominica’s natural resource endowments to create a sustainable productive asset that helps the country address the inherent disadvantages it faces as one of the Least Developed Countries in CARICOM.”
IDB Caribbean General Manager Anton Edmunds described the project as a “before and after” moment for Dominica’s energy transformation, noting that once operational, “up to 70% of the energy matrix of the country will be powered by geothermal energy, liberating important resources that were used to import fossil fuels for power generation.”
The Green Climate Fund and Canada also highlighted the project’s innovative financing model. Kristin Lang, GCF Director for Latin America and the Caribbean, stated, “By deploying catalytic capital to unlock clean energy access, this initiative demonstrates how innovative financing, including the private sector, can transform the energy sector in the region.” H.E. Brenda Wills, Canada’s High Commissioner to Barbados and the Eastern Caribbean, added that the project supports Dominica’s ambitions to become more climate resilient and energy secure.
Construction is underway in Roseau Valley. Once operational, the plant will feed renewable energy into the national grid, replace diesel-based generation, reduce electricity costs, and support Dominica’s broader climate and development goals. Minister of Foreign Affairs Vince Henderson said, “The development of this truly green, resilient and renewable energy infrastructure in Dominica is a massive step forward for the island and the wider region.”
The project also positions Dominica to fully develop its geothermal potential—estimated at up to 1,000 MW—and to engage in the growing global market for green energy products, including green electricity, hydrogen, and ammonia.
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