Main Incentives For The Development Of Renewable Energy Sources In The Dominican Republic

Publication Date20 October 2021
SubjectEnergy and Natural Resources, Energy Law, Oil, Gas & Electricity, Renewables
Law FirmGuzman Ariza Attorneys At Law
AuthorMs Emily Sucart López

On September 27, 2021, President Luis Abinader issued Decree No. 608-21, through which he modified the Regulations for the Application of Law No. 57-07 on incentives for the development of renewable energy sources and their special regimes, issued by decree no. 202-08 of May 27, 2008

The issuance of the aforementioned decree, and the consequent amendment to the Regulations for the Application of Law no. 57-07, comes from the declaration of high national interest of the liquidation of the Dominican Corporation of State Electric Companies (CDEEE) stipulated in Decree no. 342-20, issued on August 16, 2020.

That said, the issuance of Decree 608-21, has as its main purpose, to substitute the subscription of Power Purchase Agreements (PPAs for its acronym in English) of generating companies by the CDEEE, and instead, to subscribe them with the Electricity Distribution Companies (EDEs), or any other agent of the Wholesale Electricity Market.

Specifically, Decree no. 608-21 deletes numeral 11 of article 39, numeral 11 of article 40, numeral 11 of article 41, and numeral 10 of article 42 of Decree no. 202-08. Likewise, it modifies articles 65 and 66, establishing, in summary, the following:

The holders of renewable energy generating companies may sign renewable energy supply contracts (PPAs) with electricity distribution companies and with any other agent of the Wholesale Electricity Market. According to the following parameters:

  • Distribution and marketing companies, under equal prices and conditions, will give preference in purchases and dispatch of electricity to companies that produce or generate electricity, from renewable means, such as: hydroelectric, wind, solar, biomass marine and other renewable sources in accordance with the law and the possibilities of...

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