Dominica Brings Online CARICOM's First Geothermal Plant, at 10 MW

On August 6, 2026, Ormat Technologies confirmed in its second-quarter financial report that the 10-megawatt (MW) geothermal plant in Laudat, Dominica, had entered commercial operation. With that, the island becomes the first member state of the Caribbean Community (CARICOM) to generate electricity from geothermal energy, as Finance Minister Irving McIntyre declared.

The milestone closes roughly 15 years of development, begun with drilling in 2011, and rests on multilateral concessional financing. The project was developed by U.S.-based Ormat Technologies, with the Caribbean Development Bank (CDB) acting as lead financial structurer for the financial close, reached in September 2025. The financing package included a concessional loan of $25.4 million from the Green Climate Fund, managed by the Inter-American Development Bank, and $15 million from the CARICOM Development Fund (CDF), which described the plant as the first in a member state of the bloc. For the Caribbean and Central America, the case is the closest reference point for how geothermal energy replaces imported diesel in isolated power systems.

According to ThinkGeoEnergy, the plant is the second geothermal facility in operation in the Caribbean. In June 2026, geothermal sources covered roughly 43% of the island's electricity supply, with hydropower accounting for another 25%. The Caribbean Electric Utility Services Corporation (CARILEC) estimates that the plant will generate 59.6 gigawatt-hours (GWh) in 2026, around 50% of national demand, and that by 2027 the geothermal contribution will reach 60% of gross production. To integrate it into the grid, the Dominican government upgraded approximately 19 kilometers of transmission lines and substations at Padu, Trafalgar, and Fond Cole, Dominica News Online reported. Authorities are evaluating new prospects in the north of the island and options to expand extraction from the Laudat reservoir.

CARILEC's estimate of 59.6 GWh by end-2026 will provide the first real-world performance reading for the plant. The decision on northern Dominica prospects and the Laudat reservoir will then determine whether the island expands capacity beyond the initial 10 MW.

This article was drafted with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.