𝐔𝐊 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐬 £𝟏𝟎𝐦 𝐟𝐮𝐧𝐝𝐢𝐧𝐠 𝐭𝐨 𝐚𝐜𝐜𝐞𝐥𝐞𝐫𝐚𝐭𝐞 𝐆𝐫𝐞𝐧𝐚𝐝𝐚’𝐬 𝐠𝐫𝐞𝐞𝐧 𝐞𝐧𝐞𝐫𝐠𝐲 𝐭𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧

British High Commission, St. George’s – December 11, 2024:

• UK government commits £10 million to support Grenada’s goal of climate resilient and sustainable electricity generation

• Funding aims to reduce Grenada’s reliance on expensive imported fossil fuels and lower energy costs for businesses and citizens

• New funding adds onto UK’s £19.3 million investment in renewable energy initiative across six Caribbean countries to promote greener, more affordable energy solutions.

The UK Minister for Latin America and Caribbean, Baroness Chapman, met with Grenadian Prime Minister Honourable Dickon Mitchell in St George’s today, where she announced a £10 million funding package to support Grenada’s Geothermal Energy Development Project.

The funding aims to generate evidence for the viability of geothermal resources in Grenada, enabling the nation to harness this renewable energy source for electricity generation.

Baroness Chapman, UK minister for the Caribbean, said:

“I am thrilled to announce £10m in new funding, which is supporting Grenada’s efforts to reduce its resilience on fossil fuels and transition to a more sustainable, locally sourced energy future.

“The investment in geothermal energy will not only help to lower energy costs for households and businesses, but will also lead to lower carbon emissions, an essential step in tackling the climate crisis we all face.

“This is an important part of the UK government’s commitment to supporting the Caribbean region in its journey towards green energy adoption and climate resilience”.

Prime Minister, Dickon Mitchell, said:

“We are grateful for the UK’s support in advancing our geothermal exploration project. This funding will allow us to assess the geothermal potential of Grenada and take further steps towards building a clean, sustainable and more affordable energy system for our country. We are excited about the possibilities that this project holds for our country’s future.”

This investment comes at a crucial time, with Caribbean nations being heavily reliant on expensive imported fossil fuels to meet their energy needs, and the average Caribbean consumer paying double the rate of those in the United States.

The economic burden of these imports hinders their growth and resiliency efforts, leaving nations such as Grenada vulnerable to external shocks. Today’s financial commitment will help to alleviate this dependency, allowing Grenada to move towards a more sustainable, cost-effective and locally sourced energy solution.

Geothermal energy has vast untapped potential but the high upfront cost of exploring and testing for geothermal resources continues to deter private investment. As a result, public investment is essential to kickstart these projects.

The £10 million investment will fund critical assessment of the geothermal resource testing including drilling rotary exploratory wells that can considerably increase the chances of successful exploration.

Successful exploration could unlock the potential for private sector investment in a geothermal power plant, which has the potential to displace 55% of the country’s total electricity generation from diesel, enhancing energy security and resulting in lower tariff for businesses and citizens.

The UK continues to stand by its commitment to be a global champion for a low carbon future with climate, nature and clean energy at the heart of UK foreign policy. Partnerships like this will drive progress on the global ambition needed to keep global warming to no more than 1.5 degrees as called for by the Paris Climate Agreement.

The UK has already provided £19.3m to the renewable energy programme in the Caribbean since 2015, which has directly supported renewable energy and energy efficiency initiatives in Antigua and Barbuda, Dominica, St Vincent and the Grenadines (SVG), St. Lucia and Grenada.