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GSEII Case Study: Geothermal Energy in the Caribbean Table: Barriers to Geothermal Development in the Caribbea Barrier Lack of local capacity to manage geothermal projects n GSEII solution Providing technical assistance and training to local energy sector experts Inadequate policy and regulatory frameworks Providing legal assistance for the drafting of legislation supporting geothermal and other renewable energy resources High initial capital investment Lack of economies of scale Attracting international financing for feasibility studies and explora- tory drilling Encouragi islands to i ng coordination among GSEII partners and other Caribbean nvestigate potential for linking grids the emissions and cost associated with diesel generation. By conducting feasibility studies through the Geo-Caraïbes program, GSEII partners were able to eliminate an important cost barrier to entry into the geothermal market. Legal and policy expertise supplied by GSEII helped enable development. The varying success of geothermal initiatives in Saint Lucia, Nevis, and Dominica also demonstrates the importance of engaging policy makers and ensuring that agreements among government, utilities, and developers offer flexibility to protect citizens’ interests and to take full advantage of geothermal opportunities. Potential for Expansion GSEII’s experiences in the Caribbean have generated knowledge and know-how that can assist other small island states in overcoming barriers to geothermal energy. Geologic resources vary from island to island, so no two projects will be exactly alike, nor will every island have sufficient geologic resources. It is likely that Saint Kitts and Nevis will develop geothermal energy in the near future, renewing interest in the resource among islands’ governments , investors, and developers. GSEII seeks to capitalize on this renewed interest and jumpstart progress on other islands. Steam vents on the island of Saint Lucia demonstrate ongoing volcanic activity. (Photo: OAS) Contact Nasir Khattak Climate Institute 900 17th St, NW Suite 700 Washington, DC 20006 Phone: (202) 552-4723 Fax: (202) 737-6410 nkhattak@climate.org www.gseii.org West Indies Power Company drill- ing rig begins exploratory drilling on the island of Nevis. (Photo: OAS) development: reconnaissance, exploration, drilling, production and energy use. The bill has not yet been adopted, and difficult negotiations with the national electrical utility prevented the United Network of the Eastern Caribbean (UNEC) from developing geothermal energy in 2007. Furthermore, Saint Lucia signed a treaty with UNESCO to establish a newly-protected World Heritage Site that includes Sulphur Springs and areas with high geothermal potential. Consequently, drilling has not yet commenced. GSEII will continue to monitor the situation and assist in policy development and negotiations. Evaluation of Project Results Despite abundant geothermal resources throughout the Caribbean and Pacific, development efforts have proceeded slowly. Barriers have included siting issues, resistance from national electrical utilities, inadequate or unclear national policies, and the high cost of capital investment. GSEII has worked with governments and to remove these barriers; the results of which are beginning to come to fruition. Saint Kitts and Nevis, Dominica, and Saint Lucia are on their way to begin producing large amounts of geothermal energy. Lessons Learned Geothermal energy can provide a substantial source of clean, renewable energy in the Caribbean at a fraction ofPDF Image | GSEII Case Study: Geothermal Energy in the Caribbean
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