Energy Law at Dominican Republic
Here’s a detailed overview of Energy Law in the Dominican Republic:
⚖️ Legal and Regulatory Framework
General Electricity Law (Ley General de Electricidad No. 125-01)
Enacted in 2001, this is the main law regulating the electricity sector.
Governs generation, transmission, distribution, and commercialization of electricity.
Introduced liberalization and private sector participation.
Establishes principles of competition, universal access, and renewable energy integration.
Renewable Energy Incentives Law (Law No. 57-07)
Promotes investment in renewable energy sources (solar, wind, hydro, biomass).
Offers tax exemptions, import duty waivers, and guaranteed power purchase agreements (PPAs) for renewable energy producers.
Energy Efficiency Law (Draft under consideration)
Seeks to improve energy use across sectors through mandatory efficiency standards, labeling, and government procurement policies.
🏢 Key Regulatory Bodies
Superintendencia de Electricidad (SIE) – Electricity regulator; sets tariffs, issues licenses, and ensures compliance.
Comisión Nacional de Energía (CNE) – Develops and implements national energy policy.
Ministerio de Energía y Minas – Oversees the entire energy sector, including fossil fuels and renewables.
Coordinador Eléctrico Nacional (formerly OC-SENI) – Coordinates electricity dispatch and transmission network operations.
⚡ Electricity Market Overview
The electricity system is vertically unbundled into:
Generation – Mix of thermal (natural gas, coal, diesel), hydro, and renewables.
Transmission – Managed by ETED (Empresa de Transmisión Eléctrica Dominicana).
Distribution – Handled by three state-owned companies: EDEESTE, EDESUR, and EDENORTE.
Commercialization – Some participation by private companies under contract.
Blackouts and losses remain challenges due to grid inefficiencies and non-payment.
🔋 Renewable Energy and Incentives
Law 57-07 provides:
100% exemption from import duties on equipment.
Income tax exemption for 10 years.
Net metering for residential and small-scale producers.
The government targets 25% renewable electricity by 2025.
Solar and wind projects have been expanding, especially in the southern and eastern regions.
📜 Licensing and Regulation
Entities involved in generation, transmission, and distribution must be licensed by the SIE.
Environmental permits required for large-scale projects via the Ministry of Environment and Natural Resources.
Power Purchase Agreements (PPAs) must be approved by regulators and follow competitive processes.
🌐 Regional Integration and Commitments
Member of the SIEPAC regional electricity interconnection project (with Central America).
Committed to UN Sustainable Development Goal 7 (Affordable and Clean Energy).
Working to align with climate goals under the Paris Agreement.
⚠️ Current Challenges
High electricity losses (technical + non-technical).
Improving collection rates and financial sustainability of distribution companies.
Expanding rural electrification and resilience to climate risks (e.g., hurricanes).
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