An Australian geothermal power developer says turning Vanuatu's geothermal energy into electricity can boost economic activity.
Kuth Energy is finalising a deal with the Vanuatu government to establish at least two four megawatt geothermal power plants on the main island Efate to supply electricity.
The company's Managing Director, David McDonald, says it hopes to support villagers wanting to take advantage of opportunities from a new sealed coastal ring road on Efate.
"The problem with that is the power only extents to about 15 kilometres outside of the main Port Vila precinct. The resource that we're targetting is in the north of the island and therefore once it connects up to Port Vila, which is a recommendation of the World Bank, then we will essentially open up not only development but electricity to all of the villages and rural communities around the island."
David McDonald says Kuth Energy hopes to establish its first power plant on Efate in 2014.