Distribution networks cover 88% of the population, with about 8% of the connections thought to be illegal.
Approved in 2007, the Renewable Energies Incentive Law 57-07 grants incentives and tax exemptions on alternative energy imports and facilities for research and application of renewable energy technologies. Law 57-07 eliminates former law 2071, opening the country for the development of alternate energy sources. The new law’s incentives, include the following:- 100% exemption over import duties for equipment, machinery and accessories required for renewable energy production.- Income tax exemption. A 10-year exemption from all taxation on profits up to, but not beyond, the year 2020.- Fixing of the electricity price from renewables that enters the national grid to the price of the market for the distributors.- Tax incentive for Self-Producers. Up to a 75% credit on capital cost for businesses’ shift entirely to renewable energy systems or increase their energy consumption share in these. This tax credit will be deferred to the self-producer’s income tax for the next 3 years.- Community Projects Incentives. Every and all institution of social interest (community organizations, producers associations, registered mutual groups) willing to develop renewable energy sources at a small scale (up to 500 KW) and destined to a community use, may access financial assistance funds at the lowest market rate for developing these projects, for up to 75% cost of the works and its installation.Authorities overseeing every electric subsector are committed to ensuring that 25% of service needs by 2025 shall be supplied from renewable energy sources. By 2015, at least 10% of the energy purchased by the distributors and trading companies shall originate from renewable sources of energy.
HydropowerIn 2008 the Dominican Republic had an installed hydroelectric capacity of 470 MW, accounting for 14% of electricity generating capacity. It is expected that, by 2012, an additional 762 MW will have been added. The 50 MW hydroelectric Pinalito has started generating energy in 2009 while it is expected that the 99 MW Palomino hydroelectric, in the southwest, shall start operations in 2011. Construction is under way, or contracts have been signed, for 356 MW of new hydro plants. In addition, several hundred MW of new hydro projects are in different stages of development. Solar energyA high potential sector. In February 2009, the Dominican Republic signed an agreement with US firm Sunovia Energy Technologies for the installation of the country’s first solar energy plant of 20 MW. There are also estimates of 2,899 MW of solar PV projects, but these would not be economically worthwhile based on current estimates.Wind energyAbout 350 MW of wind projects have already been approved.Biomass energyThe $350 million Fenix Project from RJS Group is set to produce 100 million gallons of ethanol per year, using sweet sorghum as feedstock, and generate 55/60 MW of electricity.In January 2009, the Dominican State-owned power companies (CDEEE) and the US based company Koar Energy Resources signed an agreement to generate energy from vegetable waste.