Following the reduction that left 325.69 MW awarded out of the up to 600 MW originally contemplated in the public tender for new renewable generation , the Dominican Republic is moving towards a new stage of the process with the approval of the power purchase agreements (PPAs) between the state distributors and the selected companies.
The Superintendency of Electricity (SIE) approved the agreements that Edesur Dominicana, Edenorte Dominicana and Empresa Distribuidora de Electricidad del Este (EDEESTE) must sign with the companies awarded the EDES-LP-NGR-01-2025 process, thus formalizing the contractual framework for the development of new renewable capacity.
The approval marks the necessary regulatory step for developers to move forward with financial structuring, construction schedules, and energy delivery commitments.
The tender had generated excitement due to the possibility of incorporating up to 600 MW of new renewable capacity with storage , although the process ended with a partial award, in a context marked by prices higher than initially anticipated.
What changes with the approval of the contracts
Beyond the awarding of the contract, the approval defines the operational, financial, and contractual conditions that the selected companies must meet.
All agreements share a common structure.
The contractual object establishes the purchase and sale of renewable energy that will be injected into the National Interconnected Electric System (SENI) by the generators and acquired by the distributors.
The term will be 180 months (15 years) counted from the effective date of commencement of the supply.
This time horizon is crucial for the execution of the projects, considering that this type of development requires long-term contracts to support its financing.
Another key point is the guarantee of faithful compliance , required of each contractor as a safeguard against breaches related to construction, solvency or contractual execution.
In addition, there is a strict schedule of mandatory milestones.
Among them, one of the main ones is the financial closing, which must be completed within a maximum period of 365 days .
The following must also be fulfilled: obtaining environmental licenses, carrying out works, commercial commissioning and the effective start of supply.
Delays will trigger daily financial penalties, while more serious breaches may result in early termination.
The causes considered include insolvency, abandonment of the project, payment defaults, contractual default or prolonged force majeure events.
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Project by project: this is how the contract award stands
The largest presence at this stage is maintained by Empresa Generadora de Electricidad Haina (EGE Haina), one of the main players in the Dominican electricity market , with two approved contracts.
One corresponds to a 49.50 MW wind power project that will be contracted by EDEESTE .
In this case, the required guarantee amounts to USD 3.465 billion .
EGE Haina's second contract corresponds to a 48.29 MW photovoltaic solar project , with Edesur Dominicana as the buyer.
For its part, Parque Taíno I, linked to the Spanish developer Ecoener , obtained one of the largest blocks awarded with an 84.70 MW solar park, also under contract with EDEESTE .
For that development, the established guarantee amounts to USD 3.26 billion .
Another of the winning bidders is Galileo Energía, a firm linked to the Dominican business group Rizek , which will move forward with a 44.20 MW solar park.
The contract will be signed with EDEESTE , while the required guarantee amounts to USD 1.701 billion .
Finally, the largest single block awarded went to Mella Solar Power 1 (MSP1), the development vehicle of the Mella Group , with a 99 MW solar project.
The company will also develop this capacity with EDEESTE as a purchasing counterparty.
In this case, the required guarantee amounts to USD 3.811 billion .
EDEESTE concentrates the largest contract volume
The final distribution leaves EDEESTE as the main buyer in the process , concentrating most of the awarded capacity.
This reflects the distributor's weight within the new generation incorporation strategy derived from this tender.
In technological terms, the approved portfolio maintains a clear predominance of photovoltaic solar energy , with four of the five awarded projects, while only one corresponds to wind power generation.
With the approval of these contracts, the Dominican Republic closes the award phase and enters fully into the execution stage, where the fulfillment of technical and financial milestones will define whether the 325.69 MW actually reach the system.