St Lucia on target to begin exploratory geothermal drilling

CASTRIES, St Lucia — Saint Lucia is on target to begin geothermal exploratory drilling. The recently completed surface exploration studies, designed to better understand the geothermal resource conditions, suggest that the resource exists outside of the Sulphur Springs area and outside of the Piton Management Area (PMA).

This is good news, as earlier concerns about threats to the integrity of the PMA by this project will now be precluded.

The final technical report on these surface exploration activities will be discussed at a series of high level geothermal meetings from April 12-14, 2016.

In addition, meetings will be held between LUCELEC and the proposed geothermal developer to reach consensus on a term sheet towards the signing of a power purchase agreement (PPA), and a term sheet between government and the geothermal developer to reach consensus on a geothermal development agreement (GDA).

The development of the geothermal resource is in keeping with the government’s policy objective of reducing Saint Lucia’s dependence on fossil fuels for energy generation. In 2014, Saint Lucia committed to achieving a national target of meeting 35% of its energy requirements from renewable sources by the year 2020.

The World Bank assisted Saint Lucia in accessing approximately US$2 million from the Global Environmental Facility (GEF) and the SIDS DOCK Support Program for the geothermal resource development project. Technical assistance valued at US$800,000 was received from the government of New Zealand and US$500,000 of in-kind support was received from the Clinton Climate Initiative to assist this initiative.