The country’s first large-scale solar park, with a generation capacity of 64 megawatts (MW) is under construction by German developer Wirsol. The company says that the first half will come online this year. Electricity will be sold to the state-owned utility.
Until now, the country’s biggest solar power system generates a mere 100 kilowatts – on the roof of a water purification and bottling plant. But population – and with it, energy demand – is rising, so like many Caribbean countries which have strong solar potential, it is looking to reduce its dependence on expensive fossil fuel imports.
The Dominican Republic has a stated goal of cutting carbon emissions 25% by 2030 (from 2012 levels) and getting 25% of energy from renewables by 2025.
To back that up, it has a strong national Renewable Energy Law with progressive policies such as a feed-in tariff, net metering, a national fund for renewable energy and financial incentives.
For example, the law waives import duties for renewable energy equipment and allows companies to deduct 75% of the sales tax from sales of renewable electricity for 10 years.
These strong policies, however, face equally powerful constraints: an antiquated grid and layers of bureaucracy that force developers to make their way through 14 steps to get permits, according to Worldwatch Institute. Besides that, local developers lack capital and have difficulty getting favorable bank loans. Transport and logistics to and within the country are also very difficult.
The biggest constraint, however, seems to be a resistant-to-change mindset. According to Sustainable Business, decision makers are reverting to choices that only entrench the country’s fossil fuel dependence, with the government’s decision to install 1,200 MW of new coal-fired generation to replace an equal amount of outdated fuel-oil generating capacity. The government is also considering exploration of the island and the surrounding waters for oil and gas resources it might be able to exploit.
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