Energy profile: Dominican Republic

From Global Energy Monitor

[español][português]

This page is part of Global Energy Monitor's Latin America Energy Portal.
Related pages:

Fuel mix (fossil fuels vs renewables)

Fossil fuels - including oil, natural gas, and coal - supply most of the Dominican Republic's energy, supplemented by smaller amounts of renewables, including biofuels, hydro, wind, and solar.[1][2] The DR depends on oil for electricity generation more than any other country in Latin America and the Caribbean; as of 2017, 52% of electricity was generated from oil (down from 89% in the 1980s and 90s), while 21% and 13% came from natural gas and coal, respectively.[3] Renewable sources accounted for less than 12% of electrical generation in 2019.[1] The country aims to produce 25% of its electricity from renewable energy sources by 2025.[4]

Greenhouse gas emissions targets

The Dominican Republic's Nationally Determined Contribution (2020 revision) calls for a 27% reduction in greenhouse gas emissions by 2030 relative to business as usual, up from 25% in the country's original NDC.[5][6][7] Between 1990 and 2013, greenhouse gas emissions in the Dominican Republic increased by 368%; the majority of emissions (61.9%) were generated by the energy sector.[8]

Government energy agencies & other key players

National energy ministry

CNE (Comisión Nacional de la Energía) is the policy making agency responsible for creating and upholding the Dominican Republic's national energy plans.

Permitting agencies

The Dominican environmental ministry (Ministerio de Medio Ambiente y Recursos Naturales) issues environmental permits and licenses, and is responsible for the protection, preservation, and sustainable use of the country's natural resources.[9]

Regulatory agencies

SIE (Superintendencia de Electricidad) is the regulatory agency for Dominican energy.

Electric utilities

CDEEE (Corporación Dominicana de Empresas Eléctricas Estatales) is a holding company that brings together all Dominican government-owned generation, transmission, and distribution companies, as well as government electrical programs. Electricity is then publicly distributed through either Edenorte, Edesur, or Edeeste.

OC (Organismo Coordinador) is responsible for the coordination of the dispatch of electricity across the Dominican Republic via the national interconnected electrical system.[10]

Leading energy companies

Haina Basic Energy Ltd. and Itabo are two important private power generation companies.

Energy sector employment data

As of 2020, 19.91% of employed Dominicans worked in the industrial sector[11]; more specifically, extractive industries in the Dominican Republic employed 9,983 persons.[12]

Electricity usage

Installed capacity

Source: ECPA

Installed electrical capacity in the Dominican Republic increased by more than 52% between 2010 and 2019.[4] As of October 2020, the country's installed electrical capacity was 3,700 MW.[13]

Production

The DR has a high incidence of power outages compared to other countries in Latin America and the Caribbean.[3] Blackouts are generally seen as resulting from poor transmission and distribution infrastructure, rather than inadequate generation capacity[3][13], though service disruptions at power plants also contribute to the problem.[14][15][16] As of 2021, the Dominican Republic is planning to generate more electricity, with proposed new projects in Manzanillo, Monte Cristi and Puerto Plata slated to add up to 1000 MW of capacity.[17]

Demand

Average peak electrical demand during 2020 was approximately 2000 MW.[13] Electricity demand is very high in tourist areas, leading to the granting of concessions for private generation and distribution.[10]

Consumption

As of 2020, 100% of the population of the Dominican Republic has access to electricity.[18] As of 2016, Dominicans use just over 1,724 kWh per capita.[19]

Coal in the Dominican Republic

No coal is produced in the Dominican Republic. The country consumes over a million short tons of imported coal annually.[20] More than 80% of imports come from Colombia and approximately 15% from the United States, followed by smaller amounts from Peru, Germany, Spain, China, Mexico, and France.[21]

Oil & Natural Gas in the Dominican Republic

Domestic Production

Prior to 2019, less than 100 oil wells had been drilled in the Dominican Republic over the preceding century, with domestic production peaking at 30,000 bpd in the 1950s. The DR has not recorded any domestic production in recent years, but in 2019 the government announced that it would auction off exploration and development rights to 14 onshore and offshore oil blocks.[22][23]

Consumption

133,000 barrels of oil were consumed daily in the DR during 2016.[23]

Imports & source countries

The DR's imports of oil from the United States have increased in recent years, while imports from Venezuela and Mexico have significantly decreased. During the first eight months of 2019, 61.4% of the DR's hydrocarbon imports came from the United States, followed by smaller amounts from the Netherlands (9.7%), Trinidad and Tobago (9.1%), Nigeria (7.9%), and other countries.[24]

Proposed new sources & projects

The DR has wanted to produce oil for many years, and exploratory operations for Dominican petroleum in the Caribbean are slated to begin in 2021.[25] The country has also expanded its natural gas infrastructure in recent years, with the conversion of several power plants from oil to gas and the development of new projects including the 50-kilometer Eastern Gas Pipeline and the expansion of capacity at the Andrés LNG Terminal.[26][27][28]

Renewable Energy in the Dominican Republic

Solar photovoltaics, wind, and bioenergy are leading the renewable energy changes in the DR.[29] Between 2018 and 2026, the CDEEE will be constructing at least eight renewable energy generation projects.[13] Generous tax incentives are provided to investors in the renewable energy sector.[13] The growth of renewable energy in the Dominican Republic is supported by the legal framework which includes the General Electricity Law 125-01, Renewable Energy Incentives Law 57-07, General Law on Environment and Resources Law 64-00, and net metering legislation.[30]

As of July 2021, the largest solar plants in the Caribbean were located in the Dominican Republic.[31] The Sabana Real region near the Haitian border and other remote and/or low income communities are anticipating that an increase in solar power will be able to improve access to reliable and affordable electricity.[31]

Iron & Steel in the Dominican Republic

Iron and steel account for 4% of exports from the Dominican Republic.[32] The DR is known for its production of ferronickel.[33] In 2019, the Dominican Republic exported its iron and steel products primarily to the United States, Antigua & Barbuda, and Jamaica.[34] In 2020, US$190 million was invested in the iron and nickel industry.[35]

Environmental & social impacts of energy in the Dominican Republic

Local communities with concerns about environmental impact have to contend with businesses that are usually aligned with the government.[36] A 2016 survey found that 80% of the total Dominican population is opposed to mining projects that are invasive to the environment such as in Loma Miranda.[36] For every 200 persons employed in the mining sector approximately 15,000 are negatively impacted.[36] Toxic heavy metals have been found in the coal ash of the Punta Catalina Plant.[37] The associated health effects for local communities of unregulated plants include cancer, asthma, brain damage, higher infant mortality, neurological illness, and kidney damage.[38] Additionally, pollution from power plants also detracts from agricultural endeavors and the fishing industry.[38]

References

  1. 1.0 1.1 "Panorama Energético de América Latina y el Caribe 2020". OLADE. November 27, 2020.
  2. "IEA Policies and Measures Database © OECD/IEA". IEA. Retrieved 2021-06-04.
  3. 3.0 3.1 3.2 "República Dominicana, el país con más apagones en AL y el Caribe". El Dinero. April 24, 2017.
  4. 4.0 4.1 "Greening the Power Grid in the Dominican Republic - ECPAmericas". ECPAmericas. Retrieved 2021-04-29.
  5. "Contribución Nacionalmente Determinada 2020" (PDF). Gobierno de la República Dominicana. December 2020.
  6. "Contribución Prevista y Determinada a Nivel Nacional INDC-RD" (PDF). Gobierno de la República Dominicana. August 2015.
  7. "Dominican Republic". Climate & Clean Air Coalition. Retrieved 2021-04-29.
  8. "Greenhouse Gas Emissions in Dominican Republic" (PDF). USAID. May 2017.
  9. "Memoria Institucional 2019" (PDF). Ministerio de Medio Ambiente y Recursos Naturales. January 2020.
  10. 10.0 10.1 "Energy - Energy and Natural Resources - Dominican Republic". www.mondaq.com. Retrieved 2021-05-03.
  11. "Dominican Republic - employment by economic sector 2010-2020 | Statista". Statista. Retrieved 2021-05-10.
  12. "Dominican Republic". Extractive Industries Transparency Initiative. Retrieved 2021-05-10.
  13. 13.0 13.1 13.2 13.3 13.4 "Dominican Republic - Country Commercial Guide". International Trade Administration. October 12, 2020.
  14. "Oscuridad - Apagones trastornan la vida de la población". Listin Diario. September 16, 2019.
  15. "Pese a inauguración de planta Punta Catalina, apagones azotan zonas RD -". Prensa Latina / Al Momento. August 14, 2020.
  16. "Apagones se deben a salida de plantas | El Día Económicas". El Día. September 22, 2020.
  17. "Dominican Republic prepares to increase electricity generation". BNamericas.com. January 19, 2021.
  18. "Dominican Republic Energy Snapshot" (PDF). Energy Transitions Initiative - US Department of Energy. September 2020.
  19. Hannah Ritchie; Max Roser (2020-07-10). "Energy". Our World in Data.
  20. "Dominican Republic Coal Reserves and Consumption Statistics - Worldometer". www.worldometers.info. Retrieved 2021-05-03.
  21. "Dominican Republic | Imports and Exports | World | Coal | Value (US$) and Value Growth, YoY (%) | 2007 - 2018". Retrieved 2021-05-03.
  22. "Dominican Republic touts first-ever oil and gas bidding round". S&P Global Platts. July 10, 2019.
  23. 23.0 23.1 "Dominican Republic Oil Reserves, Production and Consumption Statistics - Worldometer". www.worldometers.info. Retrieved 2021-05-03.
  24. Suhelis Tejero Puntes (September 23, 2019). "República Dominicana depende más del petróleo estadounidense". Diario Libre.
  25. Balbiery Rosario (January 3, 2021). "El largo camino hacia la explotación petrolera en República Dominicana". Diario Libre.
  26. "DomRep converts oil-based power to gas". Argus Media. November 9, 2020.
  27. Merit Designs Consulting Group, 2006-2020. "New 50Km pipeline will allow converting 750Mw to natural gas". DominicanToday (in español). Retrieved 2021-05-03.
  28. "Energas and AES break the Dominican Republic's reliance on oil". AES. Retrieved 2021-06-05.
  29. "Renewable Energy Prospects Dominican Republic". www.irena.org. Retrieved 2021-05-03.
  30. 1. "Dominican Republic - Renewable Energy". www.trade.gov. Retrieved 2021-10-04.
  31. 31.0 31.1 Dohne, Katja (July 1, 2021). "Making the Switch to Renewable Energy in the Dominican Republic". DW. Retrieved October 4, 2021.
  32. "Dominican Republic's Top 10 Exports". World's Top Exports. 2020-06-18. Retrieved 2021-05-03.
  33. "The Dominican Republic's Economy". geography.name. Retrieved 2021-05-03.
  34. "Iron or steel; wire cloth (including endless bands), woven products, other than of stainless steel imports from Dominican Republic in 2019". World Integrated Trade Solution. 2019.
  35. Merit Designs Consulting Group, 2006-2020. "Mining will play a leading role in the rapid recovery of the Dominican Republic's economy". DominicanToday (in español). Retrieved 2021-05-03.
  36. 36.0 36.1 36.2 "Mining our mountain: People in Dominican Republic tell Canadian company 'no'". Global Sisters Report. 2016-09-22. Retrieved 2021-05-03.
  37. "Ash from largest coal-fired power plant in DR releasing toxic heavy metals – report - MINING.COM". www.mining.com. Retrieved 2021-05-03.
  38. 38.0 38.1 "Punta Catalina: Dirty Power". thegreenestfern. 2020-08-03. Retrieved 2021-05-03.