Main Incentives for the Development of Renewable Energy Sources in the Dominican Republic – Energy and Natural Resources

Dominican Republic: Main incentives for the development of renewable energy sources in the Dominican Republic

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On September 27, 2021, President Luis Abinader issued Decree No. 608-21, by which he amended the implementing regulations for Law No. 57-07 on incentives for the development of renewable energy sources and their special diets, issued by decree no. 202-08 of May 27, 2008

The publication of the aforementioned decree and the consequent modification of the Implementing Regulations of Law no. 57-07, stems from the declaration of high national interest of the liquidation of the Dominican Corporation of Public Electricity Companies (CDEEE) stipulated in Decree no. 342-20, rendered on August 16, 2020.

That said, the publication of decree 608-21 has as its main objective to substitute the subscription of power purchase agreements (PPA for its acronym in English) of the production companies by the CDEEE, and instead, to subscribe them from the Electricity Distribution. Enterprises (EDE), or any other agent of the Wholesale Electricity Market.

Specifically, Decree no. 608-21 deletes number 11 of article 39, number 11 of article 40, number 11 of article 41 and number 10 of article 42 of decree n° 202-08. Similarly, it amends sections 65 and 66, establishing, in summary, the following:

Holders of renewable energy producing companies can conclude renewable energy supply contracts (PPA) with electricity distribution companies and with any other agent of the Wholesale Electricity Market. According to the following parameters:

  • The distribution and marketing companies, at equal prices and conditions, will give preference in the purchases and shipment of electricity to companies that produce or generate electricity, from renewable sources, such as: hydroelectric, wind , solar, biomass, marine and other renewable sources in accordance with the law and the possibilities of evacuation.

  • Payment of connection rights by transport and distribution companies.

  • Remuneration to be collected according to the scale established by the National Energy Commission (CNE) and the Superintendence of Electricity in accordance with article 108 and following of the Application Regulations, these reference prices being considered as maximum prices to paid by distribution companies.

On this subject, see resolution no. CNE-AD-0008-2021 issued by the CNE, recommending to the Superintendence of Electricity on the reference prices to be considered as a model for determining the competitive remuneration applicable during the year. 2021 to production facilities that participate in the SENI.

  • Producers benefiting from a definitive concession, registered in the register of the Special Regime, will be entitled to receive the remuneration provided for in the previously signed contract, from the distribution companies or other agents of the wholesale electricity market. .

On the other hand, the National Energy Commission (CNE), the Ministry of Energy and Mines (MEM) and the Superintendence of Electricity (SIE) are responsible for ensuring that within a period not exceeding not 180 days from the promulgation of Decree 608 -21, submit to the executive power a proposal to amend Law no. 57-07 which establishes competitive mechanisms for the signing of contracts for the sale of energy from renewable sources.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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