AMALA hosted Dr. Al Binger, Director General of the United Nations (UN) SIDS-DOCK, and the Honorable Dr. Vince Henderson, Energy Minister for the Commonwealth of Dominica, at its Washington, DC office to discuss strategies for navigating the energy transition.
SIDS-DOCK was established by the UN to enhance climate resilience, energy security, and sustainable development in the 32 small island developing states (SIDS). The organization aims to connect the energy sectors of these nations with global markets for finance and clean energy technologies. As part of this effort, Dr. Binger is exploring ways to strengthen the financial credibility of utilities in the SIDS, enabling them to become more attractive off-takers for renewable energy (RE) investments, while also identifying targeted support mechanisms for specific projects that are being designed.
The AMALA team, led by Managing Director Migara Jayawardena, Director for Energy Noureddine Berrah, and Manager for Energy and Strategy Devanshi Patnaik, engaged in discussions with Dr. Binger on improving the financial performance of utilities. The team highlighted pathways to reduce reliance on costly diesel by transitioning to various RE technologies, emphasizing the need for time-bound guarantees to enhance project ‘bankability’ and investor confidence during this transition. AMALA also used the opportunity to facilitate a meeting with the World Bank to explore the upcoming Eastern Caribbean Resilient Renewable Energy Infrastructure Investment Facility (RREIIF) – a regional mechanism designed to de-risk RE investments and enhance utility financial sustainability in SIDS. The facility aims to address key barriers, including high capital costs, weak off-taker creditworthiness, and concessional financing needs, and offers project preparation support, risk mitigation, and capital market solutions for the Eastern Caribbean’s energy transition.
Dr. Vince Henderson is overseeing the deployment of Dominica’s first geothermal project, which is expected to reduce the island’s cost of electricity once fully operational. This transformative project, financed by the Caribbean Development Bank (CDB), has AMALA serving as the Lender Technical Advisor (LTA). To maximize its impact, the project also requires the strengthening of the national grid to evacuate the project’s geothermal generation to major load centers. With support from the World Bank, Dominica has already begun upgrading its southern grid. Dr. Henderson is now exploring avenues to finance a planned transmission interconnection with the north of the island, where new economic developments are expected to increase electricity demand considerably.
The discussions concluded with agreement to explore additional ways through which AMALA could support the energy transition efforts in the SIDS
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