Signing of MoU for funding support for geothermal in Grenada with the Caribbean Development Bank and UK Foreign, Commonwealth & Development Office
Surface studies suggest that Grenada’s geothermal resources could support a 15-MW power plant. This indicative potential must be confirmed through test drilling, currently underway, followed by production drilling. If successful, the project could reduce the country’s reliance on diesel by up to 55%. Grenada’s primary geothermal prospects are located near Mount Saint Catherine, the island’s highest point.
In 2023, CDB approved USD 9.4 million for the Geothermal Drilling Project – Grenada, which includes drilling two exploratory wells to assess the island’s geothermal potential. In early 2024, FCDO pledged an additional £10 million to expand the drilling programme, enabling deeper and broader drilling at the same site to improve the chances of accessing a commercially viable geothermal resource.
Speaking on the significance of the agreement, the Hon. Dickon Mitchell, Prime Minister of Grenada, expressed appreciation for the additional support:
“This £10 million investment from the UK Government is a significant milestone in Grenada’s pursuit of a sustainable and resilient energy future. By harnessing our geothermal potential, we are taking a bold step towards reducing fossil fuel dependence, enhancing energy security, and creating economic opportunities for our people. This partnership reaffirms our unwavering commitment to a cleaner, more sustainable future.”
Through CDB’s GeoSmart Initiative, the Bank mobilises resources through strategic partnerships, and provides financing and technical assistance to unlock geothermal potential, strengthen energy security, and enhance regional climate resilience.
Other islands in the Eastern Caribbean are also benefiting from funding under GeoSmart. Dominica received a USD 34.8 million loan from the CDB in 2024 for a 10-MW geothermal power plant, which is now under construction. St Kitts and Nevis has similarly received funding support of USD 17 million for the drilling of geothermal production wells. CDB previously provided USD 27 million to support the now completed geothermal exploration in Saint Vincent and the Grenadines.
