Search

Decree No. 40 13 declares the sustainable development of fishing and aquaculture to be a matter of high national priority and transfers to CODOPESCA the Model Aquaculture Production Station (EMPA), the Puerto Viejo de Azua Pilot Marine Shrimp Production Project, the Samaná Fishery Development Centre and the Presa de Hatillo reservoir fish farm. The Decree also created the Revolving Fund for the Promotion and Development of Fishing to finance materials and equipment for fishing and aquaculture, which was to have been managed by CODOPESCA. However, to date, no funds have been allocated or any operation initiated.

To engage in aquaculture it is necessary to have CODOPESCA's authorization. If the activity is carried out in an area that is publicly owned, then in addition to this authorization the necessary administrative licences must also be obtained, in accordance with the legislation in force. Applications for authorization must be accompanied by an environmental impact assessment.

In September 2014, the Dominican electricity subsector had an installed capacity of 3,298 MW, which is insufficient to satisfy the demand. During the review period, about 20% of the annual demand of the national grid (SENI) remained unsatisfied (Table 4.6). Generation continues to depend primarily on imported fuel oil, which in 2014 accounted for 49% of generation. In the same year, natural gas was the source of 20% of generation, while coal and renewable energy sources accounted for 10% and 21%, respectively.

Table 4.6 Supply and demand in the national grid, 2008 2014
2008 2009 2010 2011 2012 2013 2014
Generation (GWh) 11,750.90 11,529.20 12,271.60 12,478.30 13,848.30 13,850.90 10,026.10
Fuel oil (%) 50.2 51.4 46 43.1 40.7 46 49
Natural gas (%) 20.7 19.4 27.2 30 30.7 24.4 20
Coal (%) 17.3 16.6 15.1 14.8 15.2 14.5 10
Renewables (%) 11.8 12.6 11.7 12.1 13.4 15.1 21
Hydro 11.8 12.6 11.7 12 12.9 13.4 18
Wind 0 0 0 0.1 0.5 1.7 3

Law No. 100 13 of 30 July 2013 created the Ministry of Energy and Mining as the body responsible for formulating and administering national policy on energy and metallic and non metallic mining. Its main functions include the formulation, adoption, monitoring, evaluation and control of policies, strategies, overall plans, programmes, projects and services relating to the energy sector and its subsectors of electrical energy, renewable energy, nuclear energy, natural gas and mining. The Ministry's remit also covers national policy on prospecting, exploitation, processing and beneficiation of metallic and non metallic minerals, as well as policy on the rational use of energy and the development of alternative sources of energy.

The Dominican Republic maintains a system of incentives for the production of clean electricity and biofuels under Law No. 57 07 on Incentives for the Development of Renewable Energy Sources and its Special Regimes, which forms the basic legislative and regulatory framework for encouraging and regulating development and investment in projects that make use of some renewable source of energy. The National Energy Commission (CNE) is responsible for administering this system. There was no change in the conditions of access to the renewable energies market during the review period. Clean electricity and biofuel producers must apply for a provisional and then a final concession to be able to operate in the Dominican Republic.

(...) Efforts are also being made to boost renewable energy production through incentives.

The incentives granted under Law No. 57 07, as originally enacted, include: (a) exemption from import duties on plant, machinery and accessories needed to produce energy from renewable sources; (b) exemption from income tax (ISR) for a period of 10 years from the commencement of operations, with a maximum time limit of 2020, on income derived from the generation and sale of electricity, hot water, steam, motive power, biofuels or synthetic fuels, generated on the basis of renewable energy sources, and on income derived from the sale and installation of equipment, parts and systems produced in the national territory with a minimum value added of 35%, for companies whose installations have been approved by the CNE; (c) the reduction to 5% of the tax by way of payment of interest for external financing; and (d) a single income tax credit for firms that generate their own power amounting initially to up to 75% of the cost of investment in equipment, for a period of three years.

Law No. 57 07 also guarantees a return on investment by establishing fixed selling prices for companies that generate electricity from renewable sources. According to the authorities, as of February 2015 these incentives had not been applied. Once a domestic market for biofuels has developed, their weekly prices will be determined by the MEM (Ministry of Energy and Mining).

The MEM (Ministry of Energy and Mining) is authorized to determine the quotas for supplying the domestic market with biofuels, with preference being given to those producers that use local raw materials. Imports of raw materials (or biofuels) are permitted, subject to quotas, in the event of a shortage on the domestic market. Import licences are issued by the MEM, on the recommendation of the CNE (National Energy Commission). Surplus biofuels may be exported once the domestic demand has been met.