Dominican Republic opens bids for renewables tender, mandates energy storage

The Dominican Republic and its Unified Council of Distribution Companies (CUED) has unsealed the financial bids for a major public tender aimed at integrating up to 600 MW of new renewable generation into its national grid. The procurement process stands out by demanding firm capacity and grid stability through mandatory energy storage.

Officials reviewed 20 proposals from qualified developers seeking to build utility-scale wind and solar photovoltaic farms ranging from 20 MW to 300 MW. The process aims to integrate new renewable capacity to meet the energy demands of the North, South, and East regional distribution networks. The tender had the mandate that all participating projects must incorporate four-hour duration battery energy storage systems (BESS).

According to the tender’s specifications, each awarded long-term Power Purchase Agreement (PPA) must become operational within 24 months of signing. The contracted energy will be allocated among the regional grids as follows: North 30%, South 35%, East 35%.

During the bid unsealing, Dominican energy officials emphasized the broader strategy of diversifying the national energy mix. The country has already achieved a 25% renewable energy share within its national interconnected grid, with a targeted milestone of 30% by 2030. They also stressed the importance of keeping the bidding process highly competitive to drive down costs.

Initially launched last August, the tender has attracted significant global interest, with 32 international and regional companies presenting credentials late last year. To attract foreign investment, the long-term PPAs will be settled in US dollars and backed by end-user tariffs, offering a secure, bankable revenue model for developers willing to meet the rigorous energy storage requirements.

From pv magazine LATAM.