BTN News: The Dominican Republic’s electricity sector is at a crucial juncture. While the country enjoys a relatively stable power supply, its financial balance remains precarious, requiring urgent reforms, fresh investments, and innovative strategies. The increasing demand for electricity, fueled by the nation’s steady economic growth, highlights the need for a comprehensive approach to ensure a sustainable and efficient energy supply. This perspective was articulated by Julio Virgilio Brache, President of the Dominican Republic Industries Association (AIRD), during the “Industrial Meeting: Challenges of the Electric Sector in the Dominican Republic.” The event, featuring a keynote address by Andrés Astacio, the Superintendent of Electricity, underscored the pressing issues and potential pathways for the sector’s future.
Brache opened the discussion by emphasizing the importance of achieving equilibrium in the electricity sector, a goal that has eluded the country for decades. He pointed to the need for a service that aligns with principles of universality, accessibility, efficiency, transparency, responsibility, continuity, and equitable tariffs. These ideals were set forth in a national agreement aimed at addressing the sector’s long-standing challenges, yet the reality suggests that much remains to be done.
The growing demand for electricity in the Dominican Republic, driven by industrial expansion and economic development, necessitates significant investment and a forward-thinking approach. Brache called for collective action, highlighting that solving the sector’s problems requires a unified effort from both the public and private sectors. He stressed that political will and a total commitment to reform are essential for the country’s economic and social progress.
During his presentation, Superintendent Astacio provided a detailed overview of the sector’s progress and ongoing challenges. He noted that the supply-demand balance has improved markedly, with coverage rising from 84.72% in 2017 to 98% in 2023. This achievement has been supported by four energy procurement processes, adding 2,900 MW of capacity to the system. However, Astacio cautioned that sustaining this progress requires continuous attention to several critical areas.
One of the foremost challenges is ensuring a consistent and reliable power supply, which will necessitate further integration of new generation capacities. Astacio highlighted the importance of reducing losses within distribution companies, which is vital for their financial sustainability. Additionally, he pointed out the need for updates to the regulatory framework, especially in light of the growing reliance on variable renewable energy sources. These updates are crucial for maintaining the security and stability of the National Interconnected Electric System (SENI).
Another significant area of focus is the development of transmission infrastructure to keep pace with the rising demand and expanding electricity supply. The Dominican Republic is poised to see a substantial increase in both renewable and non-renewable energy generation by 2027. The Transmission System Expansion Plan (2021-2035) outlines an estimated investment of $794.7 million, reflecting the scale of the necessary upgrades.
Astacio also addressed the future of distribution companies, outlining a projected investment of $2.098 billion over the next six years. This funding will be directed toward key areas such as circuit rehabilitation, loss reduction, substation expansion, and system modernization. These efforts are crucial for enhancing the efficiency and resilience of the country’s electricity infrastructure.
The Dominican Republic’s energy mix is already diverse, featuring natural gas, hydroelectric, wind, solar, and biomass sources. Looking ahead, the goal is to increase the share of electricity generated from renewable sources to 25% by 2025 and 30% by 2030. Achieving these targets will require not only investment in generation capacity but also in regulatory reforms and technological innovation.
In addition to the technical and financial challenges, Astacio emphasized the role of education and social responsibility in driving the sector forward. The Superintendence of Electricity is actively involved in initiatives aimed at improving public understanding of energy issues and fostering a culture of responsible energy use.
The Dominican Republic stands at a critical crossroads in its energy journey. The path forward demands a holistic approach, where new investments, regulatory reforms, and technological advancements come together to meet the growing energy needs of a dynamic and rapidly developing economy. As the nation strives to achieve its ambitious renewable energy targets, the collective effort of all stakeholders—government, industry, and civil society—will be essential in securing a sustainable and prosperous future for the Dominican Republic’s electricity sector.
