Project Description

PIA Following the signing of a PPA and a concession agreement by the Dominican government and its operator (DOMLEC) for the development of a geothermal plant (IPP), the IRC has appointed the consultant to assess the impact of the PPA implementation on Dominica’s future energy and tariff context. The mission’s objectives are as follows:

• To project future energy needs by analyzing demand, the regulatory framework, and defining the impact of public strategies, particularly regarding the development and management of decentralized generation systems (DREG) and electric vehicles (EVs).

• To determine the total cost of the PPA for the Dominican operator by comparing electricity production costs (purchase and generation) over the duration of the PPA across various transmission scenarios with and without IPP.

• To conduct a risk analysis related to the project and the PPA.

• To assess the final impact of the PPA on the required revenue of the Dominican electricity operator and the final electricity tariffs across different scenarios over the PPA’s lifespan.

Key Takeaways

SIDS (Small heavily reliant on old, polluting thermal assets can greatly benefit from geothermal energy. It provides reliable, sustainable base load power, reducing dependence on thermal generation and exposure to fuel price volatility. Geothermal’s stability supports balanced PPA schemes, enabling cost-effective, consistent energy while promoting environmental and economic sustainability.

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