Radhames Segura, vice president of the Corporacion Dominicana de Empresas Electricas Estatales (CDEEE), said that it will be another year before blackouts diminish. “It is part of a process that will take about a year and will improve as collections increase and losses of power distribution companies diminish and the system becomes more efficient as we renegotiate generation contracts,” he said, as reported in the Listin Diario. He said that the government has pending to renegotiate generation contracts to achieve a reduction in the price of energy, including the Madrid Accord. He attributed the blackouts to the shutdown of Itabo II, and reduced generation of the Smith Enron power plant. He said that the Cogentrix power generators in San Pedro de Macoris are not operating to ration fuel due to the high cost of that operation. He said they have negotiated a US$150 million loan with the World Bank that still needs congressional approval.
He also said that the service will improve as alternative energy projects such as hydroelectric dams, coal-fueled plants and wind-fueled generators are undertaken. Segura said the government is going ahead with the construction of several hydroelectric dams nationwide.
He mentioned the Palomino hydroelectric dam in San Juan de la Maguana, an investment of US$230 million to generate 80 megawatts. The government awarded the construction to the Brazilian firm Norberto Odebrecht.
El Caribe reported that last week the CDEEE announced another memorandum of understanding has been signed with Optimo Finance, a European project finance specialist firm, to secure financing to build Las Placetas hydropower plant in San Jose de las Matas to contribute 80 megawatts at a cost of US$280 million.
A third hydrogenerator would be built at Artibonito and Magueyal along the border with Haiti, and would also be carried out with Brazilian financing.
President Fernandez also announced the construction of Pinalito hydroelectric dam that would provide 50 megawatts in Constanza, with an investment of US$131 million. This would also be a responsibility of the Brazilian firm. Banco Nacional de Desarrollo Economico y Social de Brasil (BNDES) is in charge of the financing.
El Caribe explains that the government has plans to increase generation capacity of hydroelectric dams to 400 megawatts in the long term, up from 140 megawatts at present.