The Caribbean Development Bank (CDB), the UK’s Foreign, Commonwealth & Development Office (FCDO) and the Government of Grenada have signed a £10mn Memorandum of Understanding to support Grenada’s geothermal test drilling, further advancing the island’s green energy development.
In 2023, CDB approved US$9.4mn for the Geothermal Drilling Project – Grenada, which includes the drilling of two exploration wells to access the islands geothermal reserves. In early 2024, the FCDO pledged an additional £10mn to expand the drilling programme to enable deeper and broader drilling to improve the chances of accessing the island’s geothermal potential.
Previous studies have suggested that the potential lying underneath Grenada is enough to support a 15MW power plant. This potential must be confirmed through test drilling, which is currently underway, followed by production drilling. If successful, the project could reduce the country’s reliance on diesel by up to 55%.
CDB’s Vice President of Operations, Isaac Solomon, stated, “This agreement reflects the strong collaborations driving the Caribbean’s sustainable energy transition. CDB welcomes the continued support of its development partner, FCDO, and looks forward to utilising these funds as part of the Bank’s GeoSmart Initiative to enhance Grenada’s Geothermal Drilling Project.”
Through CDB’s GeoSmart Initiative, the Bank mobilises resources through strategic partnerships and provides financing and technical assistance to unlock geothermal potential.
Hon. Dickon Mitchell, Prime Minister of Grenada, said, “This £10 million investment from the UK Government is a significant milestone in Grenada’s pursuit of a sustainable and resilient energy future. By harnessing our geothermal potential, we are taking a bold step towards reducing fossil fuel dependence, enhancing energy security, and creating economic opportunities for our people.”
Grenada is not the only Caribbean nation to set its sights on geothermal development. Earlier this month the OECS partnered with New Zealand to advance geothermal development across the Eastern Caribbean islands, and late last year CDB approved a US$34.8mn loan to Dominica for the construction of a 10MW geothermal power plant to strengthen energy security and reduce the production costs of electricity.