Developer drops DomRep gas project, eyes solar park

Dominican Republic power regulator SIE has recommended that national energy commission CNE accept a request from LS Energía Dominicana to cancel a definitive concession for a 92MW natural gas-fired project.

The concession was signed with the state in 2012 for the combined cycle plant which was planned for Boca Chica in Santo Domingo province.

BNamericas first reported on the project in 2011 when LS Energía was seeking financing from the Inter-American Investment Corporation – now known as IDB Invest – which approved a loan package that year.

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According to company information submitted to the watchdog, LS Energía said that despite signing a memorandum of understanding with a fuel supplier, a definitive gas deal was not reached due to “external motives.”

The developer also highlighted that a power purchase agreement (PPA) with a private offtaker fell through as well as PPA talks with the government.

SIE added that a technical visit to the project site confirmed that construction never began and that LS Energía has expressed interest in developing a solar project in the area.

LS Energía did not immediately respond to a request for comment regarding the photovoltaic plan.

OUTLOOK

Meanwhile, Dominican Republic power grid coordinator OC released its latest medium-term operations report which runs through June 2022.

According to the preliminary outlook, maximum demand and programmed energy in the period are forecast to hit highs of 3,028MW and 1,939GWh in August, characteristic of the seasonal peak during the northern hemisphere summer.

Through June next year, gas-fired power generation is projected to account for 45.6% of electricity production, followed by coal (36.9%), wind (5.5%), hydro (5.3%), fuel oil (2.9%), solar (2.4%) and biomass (1.1%).

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