Dominican Republic expects US$2,000mn investment in renewable energies over the next three years

The government expects an investment of more than two billion dollars in the next three years in some 35 renewable energy projects that already have their concessions, said the Executive Director of the National Energy Commission (CNE).

Edward Veras made the revelation during his presentation at the Fourth Annual International Congress and Exhibition “Renewable Latin America: Hydro, Wind, Solar”, when he informed that 15 renewable energy plants are operating in the country and that some 35 concessions have been granted, whose projects are expected to be in operation in three years at the latest.

He said that the concessioned projects will generate an investment of some two billion dollars and that there are also another 60 projects in the pipeline which are being studied to grant them their respective legal documentation, so that they can enter into the production of renewable energies by 2025.

Veras said that in the past it took several years to grant a concession, but that currently they are working so that a foreign or national company interested in participating in the production and commercialization of energy, obtains all its legal documentation in the shortest time possible.

He specified that decree number 608-21, issued by President Luis Abinader last September 27, constitutes a great opportunity for companies and investors who wish to participate in the national electricity market. He recalled that the Executive’s decree modifies Law 57-07, of May 2007, on incentives for the development of renewable energy sources and its special regimes, as well as its implementing regulations.

He explained that decree 608-21, in its article 3, modified article 66 of decree 202-08, which henceforth establishes that: “The producers with a Definitive Concession, included in the Special Regime Registry, will have the right to receive from the distribution companies, or other agents of the wholesale electricity market, for the sale of the electricity produced, the retribution foreseen in the contract”.

The Executive Director of the CNE expressed that due to the planning made in the National Electricity Plan, a new model of integration of renewable energy producers to the market is established, at the same time he highlighted that a great opportunity to build new production networks to cover the demand in the areas of high consumption, such as Greater Santo Domingo, Santiago and the tourist areas, is being initiated.

He affirmed that due to the work being done, adjustments are being made to improve the technology to generate renewable energy and reduce the use of hydrocarbons. He highlighted the importance of the natural gas plant being built in Manzanillo, Monte Cristi, which the government expects to be finished in three years.

Veras added that in addition to the presidential disposition contained in decree 608-21, investors in the electricity sector have a series of incentives, as well as access to the Green Bond through the Ministry of the Environment and the Single Window to expedite the procedures related to new companies.

He said that the country is in a position to meet international commitments to cover 25% of national demand by 2025 with renewable energies and that work is underway to reach 30% by 2030.

He recalled that although the government granted in decree 608-21 a term of 180 days to the Ministry of Energy and Mines, the Superintendence of Electricity and the National Energy Commission to submit to the Executive Branch a proposal for the modification of Law 57-07, the work is well underway, so they will comply with the request before the end of this year.

 

 

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