In an effort to further develop the renewable energy sector of St. Vincent and the Grenadines, the Caribbean Development Bank has signed an Memorandum of Understanding (MOU) with the Government of the United Kingdom, through its Department for International Development. The high costs of energy in SVG have long been ranked as a major obstacle to private sector investment and growth.
The MOU, which complements an additional grant of US$9.7 million, will partially finance exploratory drilling in the vicinity of the La Soufrière volcano, and assess the feasibility of geothermal resource development for electricity production. Strengthening capacity for geothermal energy is expected to facilitate a more efficient electricity market and enable confidence in the business environment.
The project will start on December 1, 2016 and is expected to end on October 31, 2017.
