AES Corp: We’ll make Dominican Republic a clean energy model
Santo Domingo.- AES Corporation president and CEO Dr. Andrés Gluski on Wed. said his company is working with the government of Dominican Republic on building clean energy projects based on natural gas as well as expanding their business model to the entire Caribbean.
In his appearance before the U.S. House of Representatives, the executive said AES has been one of the first companies to venture into the energy market in the Dominican Republic. “We are in the country since 1997 and since then, AES has invested over US$1.0 billion and is the largest American investor in the country.”
“As you can see, these are very large investments and the Dominican Republic has been privileged with this AES effort. In Latin America, there are only five such facilities available,” Gluski said before the members of the Foreign Affairs Committee, Subcommittee on the Western Hemisphere, and listed AES’ 850MW, or 23% of Dominican Republic’s installed capacity, which he affirms accounts for around 40%of the electricity produced in the Caribbean nation of more than 10 million people.
Gluski noted that given Dominican Republic’s lack of primary fuel reserves, the country had depended entirely on fuel oil, petrol and diesel since the 2000s.
The launch of natural gas
AES Dominicana installed the country’s first natural gas terminal at Andres, Boca Chica in 2003.
Ever since, its impact on Dominican Republic energy sector is staggering: In 2000, 90% of the country’s installed capacity was based on fuel, but compared with only a decade later in 2013, the fuel-based capacity has decreased to 39%, whereas natural gas accounts for 31%.
Savings of US$500 million annually
In the congressional hearing, Gluski said AES has helped the country’s authorities in its policy of diversifying its fuel basket, introducing natural gas in the national energy matrix. “The use of natural gas in electricity generation represents savings of US$500 million annually to the national economy and, for the environment a reduction of carbon dioxide emissions by four million tons.”
The use of compressed natural gas and liquefied natural gas has made its way into other areas of the economy, such as industrial processes and vehicle transportation.”
He lauded the Dominican government’s support for all of AES’ efforts. “An example of this is in the promulgation of the Fuels Law 112-00 in 2000, making natural gas tax free and the signing of the free trade agreement DR-CAFTA in 2004.”
Competition v. Free Trade Agreement
In an video-link interview with several local media shortly after his appearance in the U.S. Congress, DT asked Gluski if AES Dominicana was willing to accept competitors with similar projects in the country.
“More than that, we will accept any natural gas imports to re-gasify in our facilities for a fee,” he said, noting that those imports could include supply from U.S. facilities once they’re operational, Gluski said and revealed a 20-year contract for natural gas from Trinidad.
He said that AES’s long-term investment is proof of its commitment with the Dominican Republic.
The CEO of AES added that through the AES Dominicana Foundation, “we’ve implemented sustainable community programs in the areas of education and environment that have benefited more than 75,000 people the past year.”
Link to the House hearing and statement by Andrés Gluski:
Category: DR News |