Geothermal Energy Market Analysis, Eastern Caribbean

Client needs

The Eastern Caribbean States rely heavily on expensive fossil fuels despite having great potential for renewable energy. The IDB wanted to explore investment opportunities for affordable, reliable renewable energy to move the region away from fossil fuel.

How Castalia helped

• Assessed geothermal generation options for increasing energy security and system reliability while reducing electricity costs
• Compared the economic risks and benefits of clean energy generation technologies
• Estimated and compared levelized cost of energy for renewable energy technologies, including battery storage options
• Determined the potential for geothermal energy to supply baseload demand in the region.

The outcome of our work

We identified a geothermal energy-drilling project in St. Vincent and the Grenadines, which received $27 million in financing from the IDB and other partners, including DFID and the Government of New Zealand in 2019. The project is under construction.