Project Description

Dominica aims to decarbonize its power sector and stabilize electricity costs by developing a 10 MW geothermal power plant. As part of the national effort to advance the project to commercial close, the Independent Regulatory Commission engaged PIA to conduct an independent due diligence of the project’s financial model.
The assignment included a full audit of the model’s structure and transparency, review of financial assumptions – including updated financing terms for CDB and CDF loans – and assessment of their impact on the levelized price of energy under the Power Purchase Agreement.
PIA’s review identified inconsistencies in the model’s documentation and structure, assessed the implications of revised financing conditions, and quantified the resulting change in the PPA price. The work informed the regulator’s position within the national committee overseeing the project’s financial closure, ensuring that the model’s underlying assumptions, calculation integrity, and resulting tariff effects were robust and aligned with sector objectives.

Key Takeaways

Reviewing the financial model ensured transparency and consistency in pricing assumptions. The exercise highlighted how financing terms and repayment structures directly influence the Power Purchase Agreement price and tariff outlook, reinforcing the regulator’s role in maintaining balanced, evidence-based oversight of geothermal sector development.

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