4th Growth and Resilience Dialogue with Social Partners Presentation

DOMINICA: Leading the way on geothermal development

KEY FACTS: Typical small island economy challenged by low competitiveness & climate change

 750 sq. Km; 73,543 inhabitants:  Upper MIC: GDP = US$581.5 ml.  Low GDP growth ( 2.1% p.a . during 2000s), high debt, and limited fiscal space due to natural hazards, loss of preferential access to EU market and contraction of FDI  Second country globally most affected by weather-related events : losses from Hurricane Maria (2017) = 226% of GDP KEY ENERGY SECTOR STATISTICS: Small power system, heavily reliant on imported diesel

ENERGY SECTOR CHALLENGES  Build resilience in the face of natural disasters • Hydro affected by hydrology and extreme weather events • Network infrastructure mostly low voltage and very vulnerable to natural disasters

• Installed Capacity (2017)

26.7 MW

 Stabilize energy prices : average tariff = US$0.33/kWh

• Energy mix

75% diesel; 25% hydro

• Baseload needs

12 MW - accommodated by hydro and diesel

• Annual generation

111,903 MWh

 Private participation : small size/isolation impose natural monopoly

• Peak load

17 MW

• Access

98%; 36,467 customers, mostly residential

• Residential vs. non-residential consumption

50-50

 Donor coordination: crowded environment, varying quality of policy/technical support

• Historic consumption growth

2.5%

Institutional framework:  Power system is operated by single, vertically integrated private concessionaire, Dominica Electricity Services Limited (DOMLEC)

 Generation segment recently liberalized; DOMLEC exclusive T&D operator

 Dominica Geothermal Development Company (DGDC Ltd.)

TRANSFORMATIONAL OPPORTUNITY: GEOTHERMAL  100 MW of estimated potential at Wotten Waven-Laudat field; <500 MW theoretically  10-15% reduction in electricity tariffs  <80MW export demand from Martinique/Guadalupe; private sector interest

• Recently established private entity to own and operate Wotten Waven-Laudat geothermal field • 100% Government-owned • Special purpose vehicle to attract private partners into geothermal development