SANTO DOMINGO.- The geological history of the island holds valuable secrets that have been revealed by the study “Geothermal Potential of Hispaniola”, prepared by Alberto Veloz, in Economic Current Affairs Articles No. 9, of the Father José Luis Alemán, SJ Center for Economic and Social Studies, of the Pontifical Catholic University Madre y Maestra.
It turns out that deep within the island shared by the Dominican Republic and Haiti lies one of the Caribbean's greatest energy treasures: the Earth's heat, invisible and imperceptible, but capable of being transformed into clean, constant, and inexpensive electricity.
It might sound like science fiction, but the author suggests that in areas like San Juan, Azua, Constanza, and Las Yayas, there is evidence of ancient volcanoes and hot springs reaching temperatures between 160 and 230 degrees Celsius, ideal for generating geothermal energy.
What is it and where can I find it?
Alberto Veloz explains that geothermal energy is a type of energy generated from the heat of the subsoil, from which steam or hot water is extracted and used to move turbines and generate electricity, constantly, unlike the sun or wind which depend on the weather.
According to the cited study, the areas where great potential has been detected on the island are San Juan and Azua, where scientists have identified extinct volcanic cones such as Alto de Guayabal and Cerro La Bandera.
Thermal springs with high temperatures and a geological zone with favorable conditions were also detected in Las Yayas-Constanza. The study also notes that in Enriquillo, following the 2010 earthquake in Haiti, recent volcanic activity was recorded in the area, suggesting the presence of active magma beneath the surface.
Furthermore, it cites geochemical analyses conducted by the Latin American Energy Organization (OLADE), a public intergovernmental body created in 1973 through the Lima Convention, which has been ratified by 27 countries in Latin America and the Caribbean, including the Dominican Republic. These analyses reveal that in the 1980s they discovered a 50-km strip of geothermal potential between Las Yayas and Valle Nuevo.
Let the money speak for itself
Veloz's report explains that the temperatures found are sufficient to install flash steam or binary cycle geothermal plants, technologies already successfully used in countries like Costa Rica, Iceland, and the Philippines.
It is estimated that a plant of between 50 and 100 megawatts could be installed in the Las Yayas area alone, depending on the technology used.
According to the report "Geothermal Potential of Hispaniola," investing in clean energy produced from geothermal heat is profitable, although not in the short or medium term. The author states that it depends on controlling initial costs, since installing a 50-megawatt plant in Las Yayas would cost approximately US$270 million, with a cost per kilowatt of US$5,400.
It's a very high investment, mainly due to drilling and testing costs, but Veloz estimated the operating cost at only US$0.04 per kilowatt, making the project profitable in the long term.
At sales prices of US$0.10 per kilowatt, the study calculates a 16.45% return, with projected annual revenues exceeding US$60 million and net profits of approximately US$31 million per year. Furthermore, the project would have a net present value (NPV) of US$330 million.
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The report includes comparisons with Costa Rica, where geothermal energy has a 91% capacity factor (generating power almost continuously) and costs only 5.2 to 7.4 cents per kilowatt-hour, significantly lower than thermal or wind power generation in some cases.
What about environmental risks?
Geothermal exploitation, the document states, like any industrial activity, involves risks, especially due to the potential presence of minerals such as sulfur, boron, or arsenic. However, the report details that these risks can be managed with appropriate technology and best practices, such as well casing.
The study also warns that for the resource to be sustainable, no more geothermal water should be extracted than can be naturally replenished, an impact that could be reduced by using newer technologies, such as direct heat extraction without fluids, or Kalina cycle systems.
The author believes the Dominican Republic has a unique opportunity to develop a clean, reliable, and local energy source, as other Caribbean countries have done by receiving funding from Japan, Iceland, or the United States for exploration and pilot projects.
Veloz's report concludes that geothermal planning must be integrated with oil and gas exploration to share costs and reduce risks. The challenge is now before us.
