CARICOM Development Fund (CDF) Signs Financing Agreements for the Commonwealth of Dominica’s Flagship Geothermal Energy Project
CDF commits US$15 million to financing CARICOM’s First Geothermal Power Plant
(Courtesy CARICOM Development Fund)
The CARICOM Development Fund (CDF) and Caribbean Development Bank (CDB) have signed financing agreements with the Dominica Geothermal Power Company (2023) Limited (DGPC) - a locally registered entity owned by ORMAT Technologies - for the development of the first geothermal power plant in a CARICOM member state. This critical investment marks a significant step toward advancing Dominica’s climate goals and the region’s transition to clean, resilient, and sustainable energy.
Under the agreements, the CDF will provide a total of US$15 million in concessional loan financing to DGPC to support the construction and commissioning of the 10-megawatt geothermal plant in the Roseau Valley. CDF’s support complements financing and technical assistance from other regional and international partners, underscoring the importance of collaborative efforts to unlock the region’s renewable energy potential.
Once operational, the plant is expected to generate over 60% of Dominica’s electricity demand with clean, renewable energy - dramatically reducing reliance on imported fossil fuels, lowering and stabilising electricity costs, and significantly cutting carbon emissions, a critical step in achieving the island’s Nationally Determined Contributions (NDCs).
“This is a flagship project not just for Dominica, but for the entire Caribbean,” said Mr. Rodinald Soomer, Chief Executive Officer of the CARICOM Development Fund. “By unlocking the island’s geothermal potential, we are helping to deliver on the promise of energy security, affordability, and climate resilience for generations to come.”
Mr. Fred John, Managing Director of the Dominica Geothermal Development Company, welcomes CDF’s financial support to the project and the organisation’s commitment to regional sustainable development:
“This initiative is all about enabling responsible economic transformation for Dominica. This includes stabilization and lowering of electricity prices, and creating new green energy based commercial activity.”
The geothermal plant is expected to be operational by January 2026, creating local jobs, enhancing energy independence, and positioning Dominica as a model for renewable energy deployment within CARICOM.
Project at a Glance:
- Total Project Cost: US$68.3 million
- CDF Contribution: US$15 million
- Capacity: 10 MW geothermal plant
- Location: Roseau Valley, Dominica
- Expected Impact: Increased renewable electricity share to 89%, reduced electricity costs, strengthened energy security
About the CARICOM Development Fund (CDF)
The CARICOM Development Fund (CDF) is the regional institution mandated to provide financial and technical assistance to disadvantaged countries, regions, and sectors within CARICOM. Through strategic investments and partnerships, CDF promotes economic development, trade expansion, and social progress across the Caribbean.
For more information, please contact:
CARICOM Development Fund
Email: info@caricomdf.org
Phone: +1 246-436-1849