Details on DOMLEC’s Application for Extension of Licences

DOMLEC made an application to the Commission for the extension of the term of its licenses to be in alignment with that of the Geothermal Power Company of Dominica (GPCD) 2023 Ltd. This term extension is legally required so that the GPCD can sell power to DOMLEC in accordance with its license to generate power from the date of commercial operation of the 10 MW Geothermal plant for 25 years.

Background:

DOMLEC and the GPCD signed the Power Purchase Agreement (PPA) on December 4^th, 2023, and as one of the conditions precedents to the full activation of the PPA, the GPCD’s license must be in alignment with DOMLEC’s licenses. Consequently, for DOMLEC to be able to buy and for the GPCD to sell power to the grid the DOMLEC licenses that consist of:

1. Transmission, Distribution and Supply (exclusive).
2. Generation (non-exclusive).

Must therefore be extended by 25 years.

As a result, DOMLEC has made a request for the extension of the term of both licenses and therefore while the Commission must give due consideration of this request as per the Electricity Supply Act 2006, No. 0 of 2006 (the Act), specifically Section 30 and its Decision Document Reference: 2009/001/D – “Licensing Procedures – Amended May 2012,” the Commission must go to consultation prior to making this amendment and approving this request from DOMLEC.

DOMLEC’s request stated that the term extension will be from the date of commercial operation (COD) of the 10MW Geothermal plant to be built at Laudat. This means that the Commission upon granting the approval for this extension will do so on condition that the plant is built and ready for operation from the COD.

Thus, in compliance with the regulatory procedures as laid out in the above referenced documents, the Commission is guided by the principle to gamer the widest possible range of views on the matter under consideration and will then weigh in on those views prior to arriving at its final decision.

Shared for your guidance and information.

Sincerely,

INDEPENDENT REGULATORY COMMISSION

EXECUTIVE DIRECTOR