Dominica Outlines Targets and Initiatives for its Renewable Energy Sector
ROSEAU, Dominica – The Dominica government Wednesday said the island is making progress on renewable energy describing the sector as an active base for building resilience in all other sectors.
(Photo courtesy of CNG Media)“We have a national target for power generation of 100 per cent clean, carbon-neutral energy by the year 2030, from domestic renewable energy resources. Part of that responsibility is the promotion and encouragement of greater efficient use of energy and energy services by all consumers in the domestic, commercial, and public sectors,” Prime Minister Roosevelt Skerrit said.
Addressing the nation on the island’s 43rd anniversary of political independence from Britain, Skerrit said that his administration has recently endorsed an Energy Management Guide, developed with the support of the Clinton Foundation and which is now in wide circulation.
He said the geothermal project is gaining momentum and “we see a clear path to completion of this very important component of our country’s development.
“Civil works in preparation for drilling are underway. A drilling contractor has been selected and a contract will be awarded in the coming weeks. The geothermal development project requires long term vision and investment from the government of Dominica, and we are very encouraged by the progress.”
Skerrit said his government is “very grateful for the extensive support and cooperation” from the people of Laudat, a small village in the interior of the island, and all the partners who have contributed funding and technical support.
“Fellow citizens, as government and citizens we have firmly set ourselves on a path to become a resilient nation. The participation of the private sector is critical if we are to achieve the transition to a low carbon, climate resilient economy.
“To this end, with the support of the Green Climate Fund and other partners, an array of financial instruments and capacity building support are being developed by the government for this key sector, which will also serve to facilitate small businesses, as well as regional and international investors to facilitate our transition.
“We have to be nimble, adaptable, creative, innovative and forward thinking. This is what survival in this new world demands. We are asking the private sector to “think big; think different; do big; do different” – form new partnerships, local, regional and international, diversify and move into the region,” Skerrit told the nation.
He said the Subnational Global Fund, of which Dominica is a participant, has equity financing available for investments in renewable energy, energy efficiency, regenerative agriculture and nature-based solutions.
Skerrit said the Fund is willing to invest a minimum of five million US dollars to a maximum of US$75 million in viable private sector projects. He said technical assistance is also provided for prefeasibility and feasibility studies, capacity development support, financial modelling, marketing, and bankability.
Prime Minister Skerrit said that the first public consultation with Dominican stakeholders was held in September and “very shortly that Fund will open a Dominica portal on its web page through which applications can be made. In respect of this we are encouraging the development of a portfolio of private sector investment projects for which funding can be obtained, and our GCF focal point, the Ministry of Planning, is continuing to engage with the private sector in that regard”.
He said additionally, government is pursuing the development of a National Financing Vehicle (NFV), and are targeting raising capital in the amount of US$300 million with the support of the Global Green Growth Institute, (GGGI).
“Raising this capital will allow your government to make available to the public concessionary loans, commercial loans, Letters of Credit, guarantees, equity, grants for feasibility studies and pilot projects. “This funding will be available to support projects that are in line with our climate resilience plans, for green growth, clean energy, low carbon projects. Investors should start looking for new ideas and how businesses can be scaled up.”
He said Dominica is a party to the Paris Agreement and one of the activities encouraged is the trading of carbon credits.
“In furtherance of Article 6 of the Paris Agreement we will soon be signing an International Transfers Mitigation Offsets (Carbon Credits) agreement with Switzerland. The value of the carbon that we offset will be calculated and paid by Switzerland to us in a negotiated price arrangement based on a carbon market price.
“This will provide an annual revenue stream to select projects where there is a carbon offset, such as solar, energy efficient buildings, electric vehicles, reforestation, coral reef enhancement and the like.
With these various pathways for leveraging finance, we envisage a transformation of the private sector in partnership with the State.”
Skerrit said that as his administration country continues to build a resilient and dynamic Dominica, the government is very encouraged by the level of interest being shown by individuals and companies looking for investment opportunities.
“We are a unique country in several respects, with strong, stable leadership and a welcoming people.
Several of these investors have offered to partner with this government to achieve some of our developmental objectives,” he told the nation.
