Financing commercial Geothermal Energy (GE) projects whilst strengthening legal and regulatory frameworks to underpin the development of GE potential in the East Caribbean region.
According to the Green Climate Fund, five East Caribbean states (Dominica, Grenada, Saint Kitts & Nevis, Saint Lucia and Saint Vincent & Grenadines) have small and isolated electricity markets that depend heavily on imported liquid fossil fuels for electricity generation. In pursuit of United Nations Sustainable Development Goal number 7 (affordable and clean energy), the Green Climate Fund says Geothermal Energy (GE) presents the largest available renewable energy resource, with the potential to provide low cost, reliable electricity generation.
The main barriers to GE development are the high investment cost, high uncertainty during early development stages, lack of access to capital and ability to finance through public debt, inadequate regulatory and policy frameworks, and other factors such as lack of technical skills and economies of scale.
The Green Climate Fund says that the Sustainable Energy Facility for the Eastern Caribbean will address these financial, technical and institutional barriers by providing institutional strengthening and capacity building, and provide a financing package. This financial package may include concessional loans and reimbursable grants to mitigate exploration and other underlying risks and unlock investments in GE by the private sector, critical to develop GE projects in the region. The end result will be to deliver GHG Emission Reductions of 9.4 million TCO2e during the lifetime of the programme.
The following groups will provide co-financing:
Inter-American Development Bank Loan : US$20.0 million
Clean Technology Fund Grant: US$ 19.1 million
Japan International Cooperation Agency Loan:
CDB Loan: US$10.0 million
Global Environment Facility Grant: US$1.9 million
Inter-American Development Bank Grant: US$500.0 thousand
Japan International Cooperation Agency Grant: US$1.0 million
Department for International Development Grant: US$18.0 million
Inter-American Development Bank (IDB)
+1 (202) 623-1723
+1 (202) 623-1924
Dominica: Ministry of Planning, Economic Development and Investment
+1 767 226 3561
+1 767 266 4289
Grenada: Ministry of Economic Development
+1 473 435 8880 ext. 31125
+1 473 435 8889 ext 31130
Saint Kitts and Nevis: Department of Economic Affairs and Public Sector Investment Planning
+869 467 1255
Saint Lucia: Department of Economic Development, Transport, and Civil Aviation
Saint Vincent and the Grenadines: Government
+1 784 457 1746
ACCOUNTABILITY MECHANISM OF GREEN CLIMATE FUND
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