Renewable Energy Sector

Dominica has important natural energy resources, with a high potential in geothermal as a steady source of energy, and in less scale with hydro, wind and solar power. The country has a considerable amount of indigenous renewable energy resources, specifically geothermal, as well as solar and wind energies. The government of Dominica is focusing on developing these resources, through a series of actions and would be happy to partner with investors who are desirous of investing in these areas. Energy is critical to the functioning and growth of any society. Access to affordable and reliable energy is necessary for all sectors of the economy; this includes health, education, food, tourism, manufacturing, water security, and communication services. As a result, the living standards, and the level of development and competitiveness of the country are all directly linked to its access to energy. For this reason, Dominica has taken a bold step to reducing the costs of energy by 30% by developing a 7 megawatt geothermal plant. This will have a substantially positive impact on the island’s national advancement and the lives of its citizens. With the development of this plant, Dominica is now in a position to benefit from: clean; reliable; low-cost; renewable; high-quality energy supply in the future, which will certainly be of benefit to the productive sector.
  • Established Agency Dominica Geothermal Development Company to oversee geothermal energy.
  • The 7-megawatt geothermal plant will be established by the first quarter of 2021.
  • Access to financing through AID Bank for installation of renewables in a development
  • Geothermal Resources Development Bill, approved in Parliament on 24 October 2016 that provides for the legal framework for the management of the geothermal resources, reconnaissance, exploration, use and in Dominica’s case export of the resource.
The Government of Dominica offers a very generous fiscal incentive package for investment in this area. These include the waiver of import duty and payment of VAT on capital items on:
  • Reduction or exemption of import duty and VAT on inputs.
  • Reduction in corporation tax.