EDF pulls out of geothermal project in Dominica - report

Apr 16, 2013 - French power utility EDF (EPA:EDF) has decided to drop its plans to take part in the construction of a geothermal power plant on the island of Dominica, in the French Caribbeans, due to the financial conditions of the project, a source told AFP.
The 130-MW plant was supposed to provide Martinique and Guadeloupe each with a capacity of 50 MW.
The project has been under development for the past five years with important public and private financing and if a solution with EDF is not found, another international operator will take over, because the local government is determined to push ahead with the plans, according to Fred Constant, deputy Ambassador for regional cooperation in the Antilles-Guiana region.
EDF was set to inject EUR 600 million (USD 784.3m) in the construction of the facility and its two production units. According to some sources, profitability was deemed insufficient by the French group.
The position of EDF is incomprehensible and in contradiction with the commitments of French President Francois Hollande, who aims to support economic development and transition towards green energy in the overseas departments, Martinique region's president Serge Letchimy said.

(EUR 1.0 = USD 1.307)

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