The Inter-American Development Bank (IDB) and the Caribbean Development Bank (CDB) will provide over USD 85 million for geothermal development in the Eastern Caribbean.
This latest financing is an expansion of the Sustainable Energy Facility programme, under which the two lenders provided a USD 71.5 million loan and grant package for the development of renewable energy in the region in 2015. This programme is part of the CDB’s GeoSmart Initiative, and also aims to support government in building capacity and strengthening institutions to be better equipped to implement and manage geothermal energy initiatives.
Other lenders providing financing include the Green Climate Fund, and the Republic of Italy.
The programme will support geothermal development in Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines. By supporting the development of geothermal in the region, these countries will be able to cut their carbon footprint, and lower their dependence on fossil fuels.
It is expected that this financing will catalyse further investment from the private sector.