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Santo Domingo.- Celso Marranzini, President of the Unified Council of Electricity Distribution Companies (EDE), has introduced a comprehensive modernization plan for the Dominican Republic’s electric distribution sector, encompassing Edesur, Edenorte, and Edeeste. Speaking at the American Chamber of Commerce of the Dominican Republic (AMCHAMDR), Marranzini detailed a strategy aimed at reducing technical and commercial losses, upgrading infrastructure, and ensuring transparent management, supported by the Electric Cabinet and President Luis Abinader.
The plan includes a significant financial investment of over $650 million, sourced from multilateral organizations, to modernize networks and expand telemetering infrastructure. It also envisions a major reduction in the EDE deficit by 2027, enhancing service quality and customer engagement. Key aspects of the strategy involve adopting new technologies, rehabilitating networks, and installing prepaid meters to combat electricity fraud, alongside legislative measures to protect EDEs from criminal interference.
Marranzini called for unified efforts from all sectors to build a more reliable and sustainable energy future for the Dominican Republic.
This is the usual empty political rhetoric over fixing the faults of the Dominican electric generation and distribution system. The public has suffered it and the lack of electric power years on end. Action to fix the issue is the desired substitute for speechmaking. Action, the road less traveled, is a rare commodity in the RD. Speeches are easy routes.
DominicanToday - The Dominican Republic News Source in English
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Dominican State Electricity Companies Corporation (CDEEE) vice president Ruben Jimenez Bichara has announced the signing of a US$120 million loan agreement with the World Bank for the Distribution Grid Modernization and Loss Reduction Project to support the country’s work towards improving the financial performance of the three electricity distribution companies (EDEs) in selected circuits and increasing electricity access in the targeted communities.
“By increasing access to reliable electricity in poor communities, this project not only aims to improve the quality of life in poor neighborhoods, but also addresses a key bottleneck to boost inclusive growth in the country,” said Sophie Sirtaine, World Bank Country Director for the Caribbean.
“This funding will allow scaling up a successful project which already has benefited more than 100,000 Dominicans in the metropolitan area of Santo Domingo,” she added.
The agreement was signed at the CDEEE headquarters in Santo Domingo by the legal advisor of the International Bank for Reconstruction and Development (IBRD), Catherine Abreu.
The Distribution Grid Modernization and Loss Reduction project involves the rehabilitation of 1,003 km of distribution networks and upgrading of electrical interconnection for more than 120,000 customers in priority areas. It is also aimed at reducing commercial losses by installing more than 138,000 remote meters and converting over 73,000 illegal users into regular clients. It also envisions increasing the number of hours of electricity supply to 24h service to all clients in all targeted circuits.
The project will be implemented by the CDEEE and will benefit over one million Dominicans mainly in the provinces of Santo Domingo, San Cristobal, Santiago, La Vega, Puerto Plata and San Francisco de Macoris.
As reported in El Caribe, the funds will be used to rehabilitate 10 Edesur circuits, seven EdeNorte circuits and three EdeEste circuits.
It will be financed under a US$120 million loan over five years with a 20-year maturity period and a four-year grace period. This will be complemented by additional financing from the Inter-American Development Bank, the OPEC Fund for International Development and the European Investment Bank.
The Dominican Republic is one of the Caribbean''s hottest clean energy markets. After years of slow growth, the utility-scale market is in an upswing, with successful financing and construction for a number of high profile wind and solar projects. The C&I market is taking off, too. The nationally mandated goal of 25% clean energy by 2020 is within reach, or so it seems.
While these are positive movements, challenges remain. The grid needs modernizing and the regulatory regime needs – according to many – to be tightened and clarified. Ahead of DR-GRID, we talked with experts from the public and private sector to learn more about the market, and what we can expect moving forward.
New Energy Events: As you look at the DR, what excites you most about the future of the grid and the energy market?
Alfonso Rodriguez, General Manager, Soventix Caribbean SRL: The DR is a country with excellent wind and solar resources, a solid tourism economy and a growing industrial sector. There''s a real opportunity to help the country become more carbon independent while also driving the competitiveness of the DR. Additionally, new technologies will play a key role in the modernization of the grid, increasing its resiliency and lowering the existing cost.
Gil Sandro Gomez Santos, Operation Assurance Coordinator, La Empresa de Transmisión Eléctrica Dominicana (ETED): The economy in the Dominican Republic is currently very strong. We see electricity demand increasing every year. These two factors combined will continue to drive growth.
Yves Ferreira, Regional Representative for the Caribbean, European Investment Bank (EIB): Overall, there is a conducive environment for clean energy development. A few areas of note include the regulatory framework, appropriate market size to attract sponsors of quality and most up to date technologies, and funding.
NEE: What do you believe are the biggest hurdles to the development of the clean energy market in the DR?
ETED: The biggest issue is that the DR must step back and define who has responsibility for planning the electric power system. One way to ease the investment in clean energy would be to create a one-stop-shop, which would solve many of the problems for investment.
SOVENTIX: Initially, the biggest hurdle when the renewable energy law was released in 2007, was that people were not confident about the use of renewable energy technologies. Neither potential end-users, banks nor executives from the public administration.
EIB: Currently, there is an issue with the quality of the off-taker, due to the structural problems in the distribution sector. Thus PPAs are not always bankable.
NEE: Is the regulatory regime sufficiently robust to support increased investment in DG and utility-scale projects?
ETED: Truthfully, the regulatory regime needs to see some changes if the authorities want to increase investment in DG and utility-scale projects.
SOVENTIX: The legal framework has historically provided enough support to allow the development of healthy private initiatives in the traditional energy sector i.e. fossil fuels. With renewable energy the situation is no different and many foreign and local investors have already dived in, promoting utility-scale wind and PV power plants as IPPs or established EPC companies that build turnkey solutions for self-consumption for industrial customers. So whatever the shortcomings of the regulatory environment, they''re not slowing down investment.
EIB: Improvements are always possible. Overall, the regulatory regime can be considered robust.
NEE: How effective are efforts to modernize the grid?
ETED: The ETED has defined a plan to modernize the grid. We believe the plan will be effective.
SOVENTIX: The Dominican Republic still needs to define a clear strategy that unifies the actual condition of the grid with long term objectives. A shift in the discussion needs to occur – from ‘are 25% renewables are possible’ to ‘how a different type of grid can promote a more competitive industry’. Today the DR grid is still radial, not very resilient to severe weather conditions. If the DR grid could become a mesh type of grid, we could be discussing 50% renewables penetration or higher.
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