Geothermal Concessionary Financing Projected to Result in Lower Energy Prices for Consumers


Concessionary financing received by this country’s government for its investment in the harnessing of geothermal energy is projected to result in lower energy prices to consumers.

This from Prime Minister Dr. Ralph Gonsalves as he responded to a question from the Leader of the Opposition, Dr. Godwin Friday, in the House of Assembly on Thursday, with respect to the Geothermal Project.

The Prime Minister said government has been able to obtain grants and concessionary loans from a number of governments and financial institutions to part finance its equity in the 91 million US dollar project.

The Geothermal Project is a joint venture between Emera Caribbbean inc, Reykjavic Geothermal, and the Government of SVG, which will harness power from La Soufriere.

Dr. Gonsalves said the parties have recently renegotiated the power purchase agreement which will now see the government owning 49 per cent shares in the project.

The Prime Minister said that June 18th is the target date for the signing of all project agreements – this will pave the way for the continuation of work on the project which was halted last October.

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