Dominican Republic's Transition to Renewable Energy: Challenges and Opportunities

The Dominican Republic is rapidly integrating renewable energy sources into its national grid. By 2025, they aim to achieve 25% renewable energy dependence. This ambitious goal has spurred significant growth, with renewable energy contributing nearly 19% of the country’s total energy demand in 2023.

However, challenges remain. Outdated regulations, insufficient transmission infrastructure, and a lack of energy storage solutions are hurdles to continued growth. The government is exploring privatization of distribution companies and developing a regulatory framework for battery storage to address these issues.

Despite the challenges, there are significant opportunities for US businesses. Generous tax incentives, a clear legal framework, and a growing renewable energy market present attractive investment opportunities, particularly in solar, wind, and hydropower projects. Additionally, the Dominican Republic is open to collaboration with international partners to improve regulations and explore modern technologies like battery storage.

For more information, please contact Commercial Specialist Francesca Fermin: Francesca.Fermin@trade.gov.