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Latino Daily News

Thursday July 14, 2011

Dominican Republic Obtains $78 Million in Loans to Build First-Ever Wind Farms

Dominican Republic Obtains $78 Million in Loans to Build First-Ever Wind Farms

Photo: Wind Farms Coming to Dominican Republic

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The Inter-American Development Bank on Thursday approved two loans for a total of $78.3 million to support the construction of two wind farms in the Dominican Republic. The projects, part of the country’s new investment in electric power production, will add a total of 80.6 megawatts to the existing electricity production capacity, estimated at 3000 megawatts.

The new wind farms, which are being developed by private companies, reflect the growing confidence in the Dominican energy sector. Progress in the sector’s operating management, the new leadership of the Corporación Dominicana de Empresas Eléctricas Estatales (CDEEE) and the development of a strategic plan represent determining factors for the sector´s future development of the sector and plans to expand sources of energy production.

These wind farms, among the first to be constructed in the Dominican Republic, will help the country diversify its energy matrix, which currently depends almost exclusively on fossil fuels such as oil and natural gas for electricity production. The projects will take advantage of incentives created by a recent law to develop electricity production from nontraditional, renewable sources.

The wind farms will sell the power produced to the CDEEE based on 20-year power purchase agreements.

These projects will increase the production of clean energy in the Dominican Republic and reduce its vulnerability to oil price fluctuations. In addition, the wind farms will allow the country to reduce its greenhouse gas emissions by an average amount of 144.000 tons of carbon dioxide per year. Both wind farms may qualify for obtaining certified reductions of carbon dioxide emissions.

Similarly, the projects will foster the transfer of technology and specialized knowledge during both their construction and operating phases.