Michael A.

Fadelle Coordinator Renewable Energy Programme

May 2012

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Introduction
Dominica:
Known as "The Nature Island of the

Caribbean" due to its abundant plant and animal life, extensive park system, volcanic peaks, lava craters, the largest boiling lake in the world, waterfalls, rivers, and lakes.
Blessed with abundant resources and

significant potential for economic and social development.

Has a population of approximately 71,000. Size island is about 750 square kilometres. Dominica faces significant challenges

regarding its development.

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Introduction continued
Economy is predominantly agriculturally based: - high level of dependence on bananas;

Dominicas economy has suffered due to

market access problems.

Increasing dependence on tourism (nature/eco-tourism) and services (financial; ICT).

Dominica requires reliable and cost-effective types of infrastructure, and especially in energy.
Electricity and transport sectors represent considerable challenges for Dominica.
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Introduction continued

Dominica has no natural petroleum

resources.
Small size of the market, therefore

high cost of fuel and electricity.

Further, the reliability and efficiency

of the current electricity distribution system and public transportation is extremely limited.
Dominica possesses considerable

natural resources to provide for its energy security with a combination of renewable energy technologies hydro, wind, solar, biomass, geothermal and improved energy efficiency.
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Introduction continued
Use of clean renewable energy and energy

efficiency technologies will enhance the tourism sector. Dominica is the

Nature Island of the Caribbean!!

These technologies will also benefit

agriculture, industry, commerce, government and residents.

Dominicas Medium Term Economic

Strategy states that major investments in electricity generation and distribution are necessary to facilitate the requirements for the further diversification of the economy.
Dominica can demonstrate the viability of

sustainable energy systems to other nations.

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Electricity Services
Currently, diesel generators fuelled by imported oil (70%) and hydropower plants

(30%) generate Dominicas electric power.

There are two operating diesel plants (Fond Cole and Portsmouth) 16.03 MW Three hydropower facilities (Laudat,

Trafalgar and Padu) 6.42 MW

Total: 22.45 MW Thermal generation has grown modestly. Recent addition of 3 medium speed

generator for addition 4.2MW at the Fond Cole power station.

Cost of electricity in Dominica has risen significantly in recent years and are subject to world oil prices.
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Electricity Services
continued

Residential customers pay approx.

EC$0.70/kWh (US$0.26) for the first 50kWh and EC$0.81/kWh (US$0.30) for additional kWh.
Fuel surcharge is calculated monthly

and added as a per cost to the total consumption.

Dominicas electricity tariffs is

among the highest in the Eastern Caribbean - a source of concern and protest among many residents.
Slow economic growth resulted in a

very slow growth in peak electricity demand.

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Electricity Services continued

Customer base for

electricity services comprises domestic, commercial, hotel, industrial, lighting and street lighting.
Dominica Electricity

Services Ltd. (DOMLEC) is the only licenced provider of electricity.

DOMLEC is owned by US

firm WRB (51%). The Dominica Social Security owns 20%. Local corporate and private citizens own the remaining 29%.
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Energy Supply through the Years

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Generating Plant kW Installed Capacity - DOMLEC

- Hydro 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600 7,600

- Diesel

10,036

10,036

11,090

11,090

12,840

12,840

12,840

13,590

14,440

15,890

15,890

17,170

17,170

Total

17,636

17,636

18,690

18,690

20,440

20,440

20,440

21,190

22,040

23,490

23,490

24,770

24,770

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Energy Supply through the Years

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Production (MWh) Gross Generation

Hydro

36,226

33,841

33,670

32,410

31,590

27,036

35,929

28,523

33,736

27,876

27,797

21,885

20,554

Diesel

23,867

31,942

36,630

42,226

45,925

53,929

44,203

48,404

45,493

55,779

57,619

64,497

66,944

Total

60,093

65,783

70,300

74,636

77,515

80,965

80,132

76,927

79,229

83,655

85,416

86,382

87,498

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Energy Supply through the Years

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Sales of Electricity by Sector (MWh)

Domestic 24,968 26,721 28,716 30,023 30,872 31,772 32,856 32,942 33,062 33,492 34,176 33,732 34,051 Commercial 11,655 13,435 14,767 15,503 16,052 17,068 22,758 21,669 24,017 24,993 26,469 28,788 30,278 Hotel Industrial Lighting Street Lighting 1,792 2,686 6,566 914 1,757 2,326 7,054 1,000 2,312 4,348 6,110 1,041 3,244 4,553 6,202 1,069 3,154 4,420 6,409 1,098 4,026 2,801 7,127 1,120 2,839 4,607 9 1,125 2,473 4,354 2 1,295 2,704 5,508 1 1,127 2,649 5,504 1 1,150 2,439 5,357 1,130 2,002 5,600 1 1,298 6,004 2,028 1,325

Total 48,581 52,293 57,294 60,594 62,005 63,914 64,194 62,735 66,419 67,789 69,571 71,421 73,686 % change 7.64 9.56 5.76 2.33 3.08 0.44 2.27 5.87 2.06 2.63 2.66 3.17

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Energy Supply through the Years

Electricity Sales by Sector and Year: 1996-2008
40,000 35,000 30,000 25,000 20,000 15,000 Commercial Hotel Industrial

Domestic

10,000
5,000 -

Lighting
Street Lighting

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Energy Supply through the Years

Electricity Sales by Sectors Piece of the Pie in 2008
Industrial Street Lighting Lighting 3% 0% 2% Hotel 8% Domestic 46% Commercial 41%

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Energy Supply through the Years

Peak Demand (kW)

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

10,130

11,390

12,348

13,010

12,966 13,866

13,043 12,923

13,190

14,368

14,467

14,501

14,663

Growth (%)

12.44

8.41

5.36 -

0.34

6.94 -

5.94 -

0.92

2.07

8.93

0.69

0.24

1.12

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Energy Supply through the Years

Peak Demand
16,000 14,000 12,000

10,000
8,000 6,000 4,000 2,000 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

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Electricity Services continued...

The Electricity Supply Act of 2006

liberalized the electricity sector in Dominica

The Act also established the IRC to

deal with regulatory matters for the generation, transmission, distribution and supply of electricity services, among other things.

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Energy and Transportation

The transportation sector is a concern for Dominica in terms of sustainable energy use: Unregulated bus routes; Low-efficiency used car imports. High fuel consuming vehicles;

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Current Energy Development Programme

The Government of Dominica has embarked

on a programme to explore and develop Dominicas geothermal resources, primarily to generate clean and lower cost electricity. Dominica embarked on a European Union funded 1.5 million Euro geothermal resource exploration project, Preparation of a Geothermal based Cross-Border Electrical Connection in the Caribbean. The project is co-funded by the AFD and the FFEM with an additional 4.5million, the EIB for 1.1 million for a submarine interconnection study. The Government of Dominica contributed in excess of 5 million.
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Current Energy Development Programme

Project is to determine whether the geothermal

resource in Dominica is technically suitable for generating electricity.

Can lead to underwater electrical transmission

and interconnection to supply neighbouring islands of Guadeloupe and Martinique with 4050 MW of electricity each.
The project required exploratory drilling to

characterize the resource, particularly pressure, temperature, and mineral content, and to determine the feasibility and long term viability of the investment required.
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Current Energy Development Programme

Government established PMU

to manage the implementation of the project. All required staff was in place at September 2010. PMU responsible to Minister for Public Works, ENERGY and Ports PMU budget is approximately 450,000 euros for the first three years.
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Current Energy Development programme

The progress of this EU project depended on

the results of initial surface investigations at the Wotten Waven Geothermal Resource area. Tests were conducted under a Transnational Partnership Agreement between Dominica, Guadeloupe, and Martinique, and ADEME and BRGM partly funded under the EUs INTERREG IIIB (Caribbean Space) programme. This "Gothermie Carabe" project was the preliminary phase of the more comprehensive EU funded initiative in Dominica. Cost was approximately 1.1m. Activities were conducted by consultants

and technical staff of the CFG (French Geothermal Company) of the BRGM.
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Current Energy Development programme

The INTERREG phase focused on key points

which will ensure the success of the project from a technical, administrative and legal point of view. This project had four (4) main objectives: To validate the information in the OAS studies

carried out in 2005; To make a preliminary analysis of the environmental impact of the proposed project; To make a preliminary analysis of the legal and institutional framework of the project; and To revise and update the economic assessment of the project.

Report and results of the investigations under

the INTERREG IIIB phase submitted and presented at a conference of the Partners in December 2009.
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Current Energy Development programme

The EU/AFD/EIB/GoD funded project is

divided into two (2) principal Activities. Activity I will deal with the final characterization of the Geothermal Power Production potential that will specify the power production areas, undertake an investment prospectus for the proposed development, and undertake test drilling in those specific areas. Activity II will support the establishment of the PMU and provide TA in respect of policy, environment, regulation, communication and public relations, and monitoring. Will include advice on PPA with existing and potential electricity distributor.
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Current Energy Development Programme

Project intends to sell at least 40-50 MW of

electricity each to Guadeloupe and Martinique. Up to 20 MW will be reserved for the Dominican market. Total investment required for 120 MW plant estimated at US$450M to US$500M. Plan to start with small geothermal power plant of 5-10MW for local market. will help to test and evaluate the resource and the reservoir. Production can begin by the year 2014. Project can reduce the cost of electricity from US$0.27/KWh to US$0.060.10/KWh, before fuel surcharge (Geothermal Power plant will require practically NO fuel )
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Geothermal Project

Drilling contract signed with Iceland Drilling Co. in April

2011 to drill three test or exploratory wells.

Sites were selected based on results of OAS and

Interreg IIIB funded studies, and with support from technical advisors.
Government/PMU secured sites. EIA for test drilling conducted by French firm -

Caraibes Environnement based in Guadeloupe funded by ADEME.

EIA approved. Results found to be favourable. Drilling and Well Testing supervisors contracted

Geothermal Resource Group (US firm).

Well testing contractor selected Iceland

GeoSurvey (ISOR) of Iceland.

Drilling works started in December 2011. The wells were drilled utilizing the Wire-line

Coring mining technique. A level area of approximately 3000 square meters was prepared for the drilling rig and related equipment to carry out the drilling and testing activities.
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Geothermal Project
Well Locations Well Site 1: Trafalgar/Wotten Waven

Well Site 2: Laudat - Adjacent to the Aerial Tram Rain Forest facility

Well Site 3: Laudat - Close to Domlecs Balancing Tank

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Geothermal Project
Contractors Drilling Contractor: Iceland Drilling Company (IDC)
Original Contract Sum: (exclusive of VAT (15%): 3,976,702.00 Euros

Well Testing Contractor: Iceland GeoSurvey (ISOR)

Contract Sum: 461,146 Euros

Drilling Supervisor: Geothermal Resource Group (GRG)

Contract Sum: 426,394.34 Euros

Site Preparation Contractor: Offshore Civil & Marine Inc. Lot One XCD$ 715,672.60

Lot Two XCD$ 1,197,935.74

Lot Three XCD$ 986,216.71 Key Timelines
November 20, 2011: Shipment with drilling rig and related equipment

arrived in Dominica;
December 4, 2011: Drilling rig taken to site;

December 5, 2011: Official commencement ceremony of the drilling of

exploratory geothermal wells;

December 15, 2011: Drilling rig up was completed; December 16, 2011: Exploratory drilling commenced.

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Geothermal Project
First Well Drilled Site 2 o Drilling started on December 16, 2011 o Drilling completed on January 28, 2012 o Final depth of well: 1469 metres o Depth of 4 slotted liner: 1337m o Highest temperature logged: 241 degrees Celsius o Highest Pressure logged: 82 Bars (1190 psi) o Number of days drilling: 41 o Total Number of work days: 65 o Date of flow test: March 9th and 10th 2012 Results of Flow Test Total flow estimated at 6.4 6.6 kg/s with 4.9-5.1l/s liquid flow and 1.5kg/s of steam
Enthalpy 940-980kJ/kg Fluctuating gas concentrations between 34 and 63

wt%
Dominant gas is CO2 (93.6 to 96.2 vol%)

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Geothermal Project
Second Well Drilled Site 3 Commencement date of WW-3: February 15, 2012 Completion date of WW-3: March 14, 2012 Final depth of well WW-3: 1613 meters Depth of 4 slotted liner: 1605m Highest temperature logged: 245 degrees Celsius Highest Pressure logged: 98 Bars (1421 psi) Number of days drilling: 29 Total Number of work days: 40 Date of flow test: April 17, 2012 Preliminary results of flow test Total flow estimated at 22 kg/s Well thermal output equivalent to 3.5MW

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Geothermal Project
Third Well Drilled Site 1 o Commencement date of WW-1: March 28, 2012 o Completion date of WW-1: April 27, 2012 o Total depth: 1200m o Depth of 4 slotted liner: 1200m o Highest temperature logged: 180 degrees Celsius o Maximum pressure logged: 108 Bars (1566psi) o Total number of days drilling: 31 o Total number of work days: 42 Preliminary results suggest that Well 1 is very permeable, and it has the potential to be a very good well for geothermal energy. The projected date for opening up and flowing the well is the week of June 10, 2012. By that time the well would have had sufficient time to recover thermally and allow for a good flow test.

Final Results and Reports of the exploratory drilling are expected by September 2012.
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Geothermal Project

Government is very satisfied with preliminary results of the test wells drilled

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Geothermal Project
Next phase will involve: Evaluation of test drilling results. Deciding on the approach for: o Power Plant development: small plant for domestic market, and large plant for export market; o Project ownership/corporate structure; o Nature and extent of Governments participation and involvement; Complete/finalize feasibility for small (10MW) power plant; Undertake feasibility studies of submarine electrical interconnection between Martinique, Guadeloupe and Dominica;

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Geothermal Project

Results of flow tests will allow for the creation of a model of the geothermal field (including the geothermal reservoir), and to identify the location of the power plant, production and reinjection wells, and allow for the sustainable exploitation of the geothermal resource.

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Current Energy Development Programme

Dominica is also moving speedily to:
Do further review the Electricity Supply

Act (ESA) of 2006;- CREDP/GTZ/CSEP (OAS) Prepare Regulations for the ESA; CREDP/GTZ Enact Geothermal Resources Development Bill; - supported by the World Bank

Geothermal Resources Development Bill drafted. Planning and Environmental Regulations for Renewable Energy drafted. BOTH documents submitted for review and vetting by the Attorney Generals chambers.

Articulate its National Energy Policy and

Road Map (support from the OAS); and Prepare a Sustainable Energy Plan; CARICOM, the OAS, and the GTZ.
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Current Energy Development Programme

Goals of the Sustainable Energy Plan
The Energy Policy and Sustainable Energy

Plan:
Lays out a strategy by which the energy

production and use in Dominica may be transformed, becoming more economically and environmentally sustainable, while enhancing the electricity generation mix. Ensure the existence of adequate energy supplies at affordable rates to sustain economic development, while meeting current and projected power demand. Provide for stable, reliable, and affordable electricity supplies for all customers. Lower the price of electricity for consumers.
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Current Energy Development Programme

Goals of the Sustainable Energy Plan continued...
Enhance the security of energy supply and use for all

sectors of the economy. Allow reasonable incomes for businesses engaged in the local energy sector. Attract international investment where appropriate tourism; manufacturing; agro-processing... Promote energy efficiency and conservation at all levels of the economy in order to achieve optimum economic use of renewable and non-renewable sources of energy.

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Current Energy Development Programme

Goals of the Sustainable Energy Plan continued...
Protect the local and global environment by

maximizing the use of renewable-energy and energy-efficiency alternatives where viable. This is especially relevant in Dominica as much of the renewable energy generation may take place in nature preserves or rain forest areas. It is essential that this be done in a manner that does not threaten biodiversity, forestation levels, and other environmental aspects.
Promote the generation of income through energy

exports produced from indigenous energy sources (esp. geothermal resources).

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Current Energy Development Programme

Other Initiatives
Other planned and proposed initiatives include:
Undertake supplementary electricity

generating plant of 15 MW with financial assistance from the Govt of Venezuela as a short term energy security measure, and to safeguard against power failure. Preparing an Electricity System Development Study and Electricity Generation Plan for the country; Studies to identify sites for NEW hydro power plants around the island; Geothermal Resource assessment in the north of Dominica; Undertake Energy Audit of Govt facilities and street lights; Encourage use of solar hot water systems in homes and hotel sector;
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Current Energy Development Programme

Government issued a Geothermal Resource

Licence to West Indies Power Ltd. in July 2008 to:

Explore and exploit geothermal resources

in Soufriere resource area in the south of Dominica.

Plan is to produce 15 MW of electricity in the

first instance for sale to existing electricity distributor.

Initial investigations started, with good results. Plan to begin test drilling later this year. EIA and Development Plan as part of Planning

approval are to be submitted.

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Outstanding Matters
1.

Approval and implementation of National Energy Policy.

2.

Finalize and approve, and implement Sustainable Energy Plan important component is the Energy Efficiency programme for Dominica.
Need for a comprehensive strategy and approach to implementing host of Technical Assistance activities and programmes for both RE and EE, in the context of sustainable development.

3.

4.
5. 6. 7.

Need for TA to review and validate project and renewable energy resource evaluation reports.
Need for TA to undertake electricity system generation study and generation plan - USTDA considering similar support to DOMLEC. TA to undertake Energy Audit of Government facilities and street lights. Energy Efficiency audits in tourism/hotel sector including cost reduction measures including use of solar power hot water and AC refrigeration. Capacity development in RE technologies.
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8.

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Energy Development Programme for Dominica

Thank You.

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