Geothermal development in Dominica jeopardized after France’s EDF abandons project

The stunning announcement comes just weeks after representatives from Agence Francaise de Developpement (AFD) and the European Union signed an agreement for Dominica to receive US $ 10.3 million to go towards the further development of geothermal energy on the island.

News of EDF’s withdrawal effectively puts an end to Dominica’s ambition of providing up to 50 MW each of geothermal energy to the two neighboring islands. It may also effectively end Dominica’s own push to generate geothermal energy for local consumption.

The jaw dropping announcement elicited an immediate response from Serge Letchimy, President of the Regional Council on Martinique who wrote to French President Francois Hollande to express his shock and outrage at EDF’s decision.

“I ‘m surprised to learn that the President of EDF announced the withdrawal of the public company’s project to build a geothermal plant in Dominica where it was to partner with the State of Dominica, Guadeloupe and Martinique, ADEME, BRGM, AFD and several French private partners.

“This project aims to provide 50 MW to Guadeloupe and 50 MW to Martinique, thereby reducing their dependence on fossil fuels and thereby making savings of around EUR 100 million ($130 million) per year. It would also help neighbor Dominica to be fully supplied by green power.”

Letchimy went on to say in his letter that the main reason given by the president of EDF was concern over the “viability of the project.” He also noted that EDF was interested in looking at other projects, and would no longer commit capital investment to project.

“A decision of this magnitude taken without prior consultation seems to me to be a patronizing disregard vis-a-vis all the partners in this operation, starting with Dominica, and a total contradiction of the political commitments that have been made in favor of the overseas territories.

“At the time of important climate issues as well as your vow to the effective development of regional cooperation, I wanted to inform you of my total disagreement with the decision,” Letchimy told Hollande.

The efforts between Dominica and the French counterparts was originally geared at building a 120 MW geothermal plant in Dominica, which would supply Martinique and Guadeloupe with power via submarine cables, and provide for local consumption.

Now that the EDF has announced that it is no longer interested in the project, this could spell the end of Dominica’s ambitions to export power to the neighboring countries.

Over the past few months, there was growing public concern over the method of generation proposed under the project, which included the drilling of deep wells. Environmentalists were also voicing concern over the potential impact on the water table and the release of noxious gases.

Also of much interest is the fact that in the midst of Dominica’s engagement with the French, the Skerrit led administration had turned to the Clinton Initiative in New York to look after the country’s interest, and had reached out to interests in Iceland.