Roadmap To a Sustainable Energy System

Harnessing the Dominican Republics Wind and Solar Resources

Evaluacin de los Recursos Renovables para Tomadores de Decisiones en Repblica Dominicana Presentation of the Report, CNE, Santo Domingo, 18 July 2012 Alexander Ochs, Lead Author and Director of Climate & Energy Mark Konold, Project Manager, Caribbean Energy Roadmaps

Thanks
Alianza en Energa y Ambiente con Centroamarica (AEA/EEP)
Comisin Nacional de Energa (CNE) 3TIER Participants in our Stakeholder Workshop

The Need for a Sustainable Energy Roadmap in the Dominican Republic

Fossil Fuel Reliance, Electricity

12% 15% 27% Hydroelectric 3% 43% Fuel Oil

Natural Gas
Coal

Self-generation

85% of the countrys electricity is based on imported fossil fuels USD $2.6 billion spent on fossil fuel imports in 2010 (>5% GDP) Massive economic & social consequences

Technical Issues
One of the highest rates of distribution losses in the world Electricity instability costs the country $1 billion every year (3.4% GDP) Population resorts to inefficient small-scale fossil fuel-based units

The Roadmap Response

Renewable Energy Assessment

Holistic approach
Energy Efficiency

Financing Options

Makes specific recommendations based on this approach Stakeholder participation and insight allows for capacity building through interactive input

Policy Assessment

Grid Integration and Technical Assessment

Socioeconomic Analysis

Resource Assessments

National Wind Assessment

Wind Resource by Zone

Best

potential: Montecristi Pedernales Bani

70% of the most attractive sites located in Pedernales

Wind Resource by Zone

Complementarity

Daily (Diurnal) Variation

Complementarity

Seasonal Variation

National Solar Assessment

Direct Normal Irradiance

Solar Resources in Santo Domingo

Average GHI 227.1 W/m2

Average DNI 227.1 W/m2

Monthly Variation in Santo Domingo

Average GHI highest in April and May Monthly mean DNI much less variable

Peaks in March and April

Solar irradiance lines up well with electricity demand (GHI stays high through months of highest electricity use)

Daily Variation in Santo Domingo

Highest electricity demand occurs between 7pm 11pm Peak demand during the day lines up well with GHI Concentrated solar thermal power could be an option for using solar to serve evening demand

Solar Resources in Santiago

Average GHI 233.2 W/m2

Average DNI 223.1 W/m2

Monthly variation in Santiago

Average GHI highest during June August Mean DNI much less variable over the course of the year; Peaks in July and August

Daily variation in Santiago

Peak demand during the day lines up well with GHI

Again, concentrated solar thermal power could be an option for using solar to serve evening demand

Socio-economic Analysis

Development of Domestic Resources

Harnessing solar and wind resources will enable the DR to keep investment within the country rather than sending huge amounts of its GDP overseas to pay for fossil fuel imports Vulnerability to high oil prices and shocks plays a large role in high electricity prices developing the countrys strong renewable energy resources will result in more stable prices for households and businesses in the DR

Job Creation Estimates for Planned Solar PV and Wind Capacity in the Dominican Republic
Planned Installation Capacity Manufacturing Installation Jobs Jobs O&M Jobs Total Jobs

Solar PV
GEDER Monteplata plant 30 MW 24 36 30 90

Wind
Los Cocos and Quilvio Cabrera wind farms* Los Cocos expansion Juancho wind farm Matafongo wind farm El Guanillo wind farm 33 MW 25 MW 50 MW 30 MW 50 MW 218 MW 21 16 32 19 32 144 7 5 10 6 10 74 11 8 17 10 17 93 39 29 59 35 59 311

Total

Policy and Finance Recommendations

1. A Long-term Vision for the Promotion of Renewables

Long, loud, and legal climate & energy targets Sustained for a duration reflecting financing periods of projects Ambitious enough to make a real difference Anchored in a legally established regulatory framework

The DR fairs well in this regard: Goal to reduce absolute GHG emissions by 50% below 2010 levels by 2030 25% renewable energy share target by 2025

2. Effective Support Mechanisms

The DR has strong policies in place through Law 57-07, but many of these need to be strengthened or fully implemented Tax exemptions and incentives: successful tool; but: greater predictability and transparency needed currently lengthy procedure and uncertain criteria Feed-in Tariff Resulted in a boom in concession applications, but so far no FiT payments have been carried out Identify and set an appropriate rate so it can start being implemented currently very high at 53-60 U.S. cents per kWh Net Metering: Increase awareness

2. Effective Support Mechanisms

Need to mobilize funding to support implementation of these measures and other sustainable energy projects Resolve the Hydrocarbon Fund Issue of Law 112-00 Supposed to fund support mechanisms in Law 57-07 Would pay for FiT premium Support small-scale renewable energy development in lowincome areas through 75% capital subsidy Increase financial sector capacity banks are still inexperienced and wary of lending in the still-developing sustainable energy sector Access international financing including traditional development aid and climate financing

3. Administrative & Organizational Effectiveness

Integrated policy goals and mainstreamed policies

Application for a provisional concession at CNE

CNE publishes the concession request in a national newspaper

CNE publishes the granting of the provisional concession

Application to Electricity Supervision Board (SIE)

CNE includes the applicant in the Special Regime Production Facilities Register

Granting of provisional concession

Application for a permanent concession

Environmental Impact Study (SEMARENA)

Resource and production analysis by a company authorized by CNE

Grid study

CDEEE guarantee of PPA

Guarantee

CNE receives the reports of the SIE and SEMARENA

Definitive concession

(Administrative procedure to obtain a renewable energy concession)

3. Administrative & Organizational Effectiveness

A One-Stop Shop single administrative window Reduce bureaucratic burdens on sustainable energy investors Review project bankability and availability of funds

Increase stakeholder participation in the decision-making process to ensure that policies and support mechanisms address investor and developer needs and concerns and have public support
Monitoring, reporting, and evaluation of policy implementation

Moving Forward: Developing a Comprehensive Energy Policy

Muchas Gracias!!
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