THE DOMINICAN

ELECTRICAL SYSTEM
Prepared by: Bari Dominguez
April 2022
Introduction
◦ The Dominican Electrical Sector has traditionally been a bottleneck to the country economy growth. An extended
electricity crisis and ineffective remedial measures have led to a vicious cycle of regular blackouts, high operating costs
of the distribution companies, large losses including electricity theft through illegal connections, high retail tariffs to cover
these inefficiencies, low bill collection rates, a significant fiscal burden for the government through direct and indirect
subsidies, and very high costs for consumers as many of them have to rely on expensive alternative self-generating
electricity. This situation has been improving during last years.
◦ To sale Energy in the Dominican Republic there are two ways: Contract Market and the Spot Market.
◦ The Spot market price, this price refers to the cost of Energy and Power in the spot market, which is determined by economic
transactions of the major electrical market performed by the SENI Coordinating Body as established by the law 125-01.The spot
market includes purchase and sale transactions of electricity in the short term not based on forward contracts and whose economic
activities are carried out at Marginal Cost of short term energy and the Marginal Cost of Power. The other way to buy energy is
through the Contract Market which is established by the agreements between the generators and the distributors.
◦ In 2021 the generation per source was: Solar (2.5%), Biomass(1.02%), Wind (6.21%), Water(7.57%), Coal ((30.97%), Natural
Gas (40.78%), and Petroleum Derivatives (10.96%)
◦ In 2021 there was an increase of energy demand of 10% which normally is 3 or 4%, this was because the increase in the
supply of electricity to support the economic rebound as consequence of the effects of the COVID-19 pandemic.
◦ In the following page we include a summary of the main players of the Dominican Electrical Sector:
Institution Name

Transmission company
1 Main Grid:

Players
Interconnected Grid (SENI) (138kV and 345kV)
Own by Empresa de Transmision Electrica Dominicana (ETED)

2 Regional Isolated:
EGE Haina - Pedernales
CEPM – Bavaro/Punta Cana

Distribution Companies 3 Main Public:

EDENORTE Dominicana, S.A.
EDESUR Dominicana, S.A.
Empresa Distribuidora de Electricidad del Este, S.A. (EDEESTE)
2 Regionals:
CEPM (Punta Cana and Bavaro)
Luz & Fuerza (Las Terrenas)
Compañia de Electricidad de Puerto Plata (Playa Dorada Puerto Plata)

Responsible of Regulation Electricity Superintendency (SIE)

Responsible of Environment Ministry of Environment and Natural Resources

Electrical System Operator Energy Control Center (CCE)

Responsible for Policy Setting National Energy Commission (CNE)

Renewable Energy Law Law 57-07

Electricity Law Law 125-01

The capacity installed in the National
Electric Interconnected System (SENI)
Source Capacity(MW) Percent
Natural Gas and FO #6 558.5 10.7%
Natural Gas 1,119 21.3%
Coal 1,065.60 20.3%
Wind 366.6 7.0%
Solar 313 6.0%
Biomass 30 0.6%
Hydroelectric 624 11.9%
Petroleum Derivatives 1,165.30 22.2%

Total Installed Capacity 5,242

Updated information up to the 2021 Year Closing
◦ In 2021 the generation per source was: Solar (2.5%), Biomass(1.02%), Wind (6.21%), Water(7.57%), Coal ((30.97%),
Natural Gas (40.78%), and Petroleum Derivatives (10.96%)
◦ Two solar parks came into operation that increased the production in 150MW and increased the private sector
investment in generation. The energy produced with natural gas also expanded its participation with an
additional 150 MW.
◦ The energy demand reached an accumulated value of 19,431 GWh. In 2021 there was an increase of energy
demand of 10% which normally is 3 or 4%, this was because the increase in the supply of electricity to support the
economic rebound as consequence of the effects of the COVID-19 pandemic.
◦ The Distribution Companies kept losses levels of 33% of the energy they purchased. The main reason of the losses
is because there are users without energy meter caused by an inefficient commercial management and there is
presumably a percentage of the 33% that establish fraud systems so that the meter does not reflect the true
consumption. The Distribution companies are implementing projects to reduce the levels of losses. In summary,
the level of collection of the energy distribution companies with respect to the energy billed between the months of January
and November 2021 was 95%, while the losses 33%.
◦ The average price of generation kWh in the spot market was 11¢ . The distribution companies participated with
a proportion of 20% in the energy purchase and 60% in the power purchase. In the same way they participated
in the contract market with 80% in Energy and 40% in Power.