The Caribbean Development Bank, the United Kingdom’s Foreign, Commonwealth and Development Office (FCDO) and the Government of Grenada had partnered to advance Grenada’s Geothermal energy.
According to the Caribbean Development (CDB) the £10 million pound agreement signed by the sides will support geothermal test drilling on the island.
Vice President of the CDB, Isaac Solomon said the agreement reflects the strong collaborations driving the Caribbean’s sustainable energy transition.
According to him, the CDB welcomes the continued support of its development partner, FCDO and looks forward to utilising the funds as part of the Bank’s GeoSmart initiative to enhance Grenada’s Geothermal Drilling Project.
“With Grenada’s commitment to advancing its geothermal development, this funding will help unlock sustainable, indigenous energy sources, strengthening energy security and resilience.”
In 2023 the CDB approved USD9.4 million for the project which includes drilling two exploratory wells to assess the island’s geothermal potential. In 2024, the 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.
Grenada’s Prime Minister Dickon Mitchell said the money investment by the UK government is a significant milestone in his country’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.”
Beyond Grenada, other islands in the Eastern Caribbean are also benefiting from funding under GeoSmart. In 2024, CDB approved a USD 34.8 million loan to fund the construction of a 10-megawatt geothermal power plant in Dominica, while funding of USD 17 million has been approved for St Kitts and Nevis towards the drilling of production wells on the island of Nevis. CDB previously provided USD 27 million to support the now completed geothermal exploration in Saint Vincent and the Grenadines, the bank said.