North Energy Central, a subsidiary of Southern California Telephone & Energy, has signed a Memorandum of Understanding (MOU) with the Dominican Republic to install a 400 megawatt power plant at a cost of US$800 million with state-owned electric utility, CDEEE.
The gas-fired power plant will be built in Manzanillo, in the northwestern province of Montecristi. This is in addition to the two 300 MW coal-fired plants for which the CDEEE has recently called a tender.
The estimated US$800 million investment for the development of this energy project is supported through private funds, according to a press release from the company. The Dominican Republic will not incur any financial expense other than paying for the electricity they use.
In addition to the power plant, NEC has informed sources that the transaction will include natural gas-supply contracts based on NYMEX prices, not only to power the plant, but also to meet the CDEEE’s immediate needs to convert its oil-based energy park. The 400 MW generation project will provide relief to the people of the Dominican Republic who currently pay extremely high electric utility rates.
NEC and SCT&E are targeting emerging markets, like that of the Dominican Republic, for Power Plant generation projects, Liquefied Natural Gas opportunities, and other energy solutions, says the company.
“With this energy project designed by a world renowned US engineer with international experience,” says Greg Michaels, CEO of NEC and SCT&E, “the company plans on generating 200 megawatts in 18 months and 400MW in 28 months, in addition to developing a Liquefied Natural Gas storage tank within 30 months.”
The PPA between NEC and CDEEE is expected to be signed shortly and is written with competitive prices compared to the current average prices the CDEEE now spends. According to the CDEEE website, it is estimated that the Dominican Republic will save approximately US$300 million per year.
A subsidiary of SCT&E, NEC has completed, designed and retrofitted old and built new power projects totaling 8,800 megawatts worth approximately US$5 billion.
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