Requests for energy concessions surpasses US$4.4 billion

DOMINICAN REPUBLIC.- Private investors have deposited 71 proposals for concessions of conventional and renewable energy with the National Energy Commission (CNE) between 2004 and now, which represent 2,934.4 megawatts and US$4.401 billion in investments.

Nevertheless, in spite of the large number of requests that have been made, few are the projects that are in operation. Some that have started are the wind energy project in Oviedo, as well as the preparation work on the lands that will produce ethanol in Montecristi, and a bio-fuel facility in Bonao.
According to a report regarding the legal status of the definitive and provisional concessions that rest in the legal office of the CNE, of all of the concession, there are 57 that are for renewable energy, eleven for conventional energy and eleven pending recognition.

The number of conventional energy projects would produce 523.9 megawatts and the majority of the renewable energy projects would produce 2,387 megawatts. Last year was the period in which most of the requests for these projects were deposited, according to the CNE report.

Of the 71 concessions requested, the CNE has approved 36, of which 11 are definitive approvals and 25 provisional, according to the document.

The areas or provinces with the most approved concessions are Puerto Plata with 14, Montecristi, with 8, Pedernales with 5, La Altagracia with 4; Azua with 6, Barahona, Santo Domingo San Pedro de Macoris, Monsignor Nouel, with two projects each. The provinces with just one concession are Valverde, Dajabon, Monte Plata, Hato Mayor, Maria Trinidad Sanchez and Santiago Rodriguez.

According to the report, the amount of megawatts requested by province in conventional energy is 1. for Samana, 60 for La Altagracia, 48.2 for San Pedro de Macoris, 250 for Montecristi, 36 for Barahona, 90.2 for Puerto Plata.

The megawatts requested for renewable energy requested by province are 865 for Puerto Plata, 300 for Pedernales, 500 for Montecristi, 151.5 for Azua, 250 for Samana, 90 for Peravia, 50 for Barahona, and the same amount for Maria Trinidad Sanchez.

Some of the 11 definitive concessions are located in the provinces of La Altagracia, Montecristi, Peravia, Puerto Plata, and a micro-hydroelectric facility in Jarabacoa, La Vega. There are also projects to produce biodiesel in Azua, as well in the province of La Altagracia where 100,000 gallons of oil from the jatropha curcas (sometimes called the "physic nut") will be produced.

Some investments are announced

Last 15 January, the Corporation of State-owned Electricity Enterprises (CDEEE) signed an agreement with KOAR Energy to produce 10 megawatts of energy based on rice, plantain and coconut refuse and an investment of US$30 million.

In February, they had the ceremony of the first spade-full of construction for the two solar energy parks in Las Calderas in Bani, that will generate 100 megawatts based on an investment of US$180.8 million and which is expected to start operations in December. Sunovia Energy signed an agreement with the government on 3 February to install the first solar energy plant with an investment of US$200 million and the creation of 2500 jobs.

The National Energy Commission announced the investment of US$2.0 billion to produce biodiesel based on the Jatropha Curca, based in the province of Montecristi. Local investors and Element Power announced the construction of five wind energy parks in Montecristi that are supposed to begin operation in 2011.

Diario Libre