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Dominican Republic, AES Corp. strike US$260M energy deal

Santo Domingo.- Dominican Republic’s State-owned Electric Utility (CDEEE) signed with Dominican Power Partners (DPP), of the AES Dominicana group, a contract to purchase energy that will be in effect during six years and allow the materialization of the combined cycle project on the  Los Mina V and VI power plants.

When the combined cycle is installed, DPP will increase the supply of energy from the current 210 megawatts generated from natural gas, to 324 MW. The contract takes effect August 1, 2016.

The combined cycle, which should be ready by January 1, 2017, will cost AES Dominicana US$260 million, without guarantees from the Dominican State. It’s estimated that the country could saveUS$120 million annually when the contracted energy enters the grid.

The agreement was the result of a preliminary meeting between president Danilo Medina and AES Corporation president Andres Gluski, together with Manuel Pérez Dubuc, regional president for Mexico, Central America and the Caribbean; CDEEE board chairman José Rafael Santana, and AES Dominicana CEO Edwin De los Santos.

The contract was signed by Rubén Jiménez Bichara, CEO of the CDEEE, and Santana, whereas Pérez Dubuc represented DPP Regional Finance vice president Ricardo Falú; and AES Dominicana president Edwin De los Santos.

Prior to the signing the document, CDEEE energy management director Santa Ramos stressed the contract’s importance since it contributes to the Government’s objectives of increased electricity generation with low-cost fuels, reducing the country’s dependence on petroleum-based fuels and its harmful impact on the Dominican energy system’s rates, as well as the high subsidies that must be paid to private power companies annually.

“We feel that it’s a very important project for the country’s energy diversification and stability, and there’s our support as an institution and as a State, for the DPP company to start at the projected date, or let’s say that at the beginning of 2017, this project may be underway,” Ramos said.

Meanwhile Jiménez Bichara and Pérez Dubuc said they appreciate and are satisfied with the completion of an agreement that was being worked on for several months by teams from both companies, to realize the goal to convert DPP’s power plants to combined cycle.

Competitive advantages

Among the advantages from the Los Mina V y VI combined cycle project, AES Dominicana cites environment-friendly power generation, the short time to operation of around 28 months, and the DPP plant’s 50% increase in energy efficiency.

It also notes that the Kyoto Protocol recognizes the project as a clean developing mechanism (CDM); energy at competitive prices, both in relation to contracts and the spot market, and the creation of more than 300 jobs during the construction.

Source: DT

Category: DR News |

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Last updated October 26, 2016 at 10:54 PM
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