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4.47. (..) The Ministry is also tasked with developing, implementing and evaluating policies and strategies relating to the extractive sector. The Ministry of the Environment and Natural Resources (MMARN) also oversees some aspects of extractive industries, as it issues environmental licences and verifies compliance with the General Law on the Environment and Natural Resources (Law No. 64 00).

4.50.   There are two types of concession: three-year exploration concessions, which can be extended for a further two years maximum on justifiable grounds, and 75-year exploitation concessions. Applications for both types of concession must include a work programme, maps and plans of the area, and documents attesting to the applicant's moral, technical and financial solvency. [71](...) An environmental licence must be obtained before a concession can be awarded.[72] (...)
[71] To obtain an exploitation concessions, additional information is required, such as an environmental feasibility study. The application requirements for both exploration and exploitation concessions are available online. MEM[The Ministry of Energy and Mines]. (...)
[72] The cost of an environmental licence varies depending on the type of exploitation (metal or non metal) and the size of the investment.

4.64. Non-renewable natural resources belong to the Nation, and exploration and exploitation rights are granted to private sector entities through concession contracts following a tender process. (...)

4.73.   (...) Renewable energy sources have doubled their contribution to electricity generation between 2015 and 2021, with only hydropower following a downward trend from 2017 onwards. (...)

4.75. In 2021, the National Pact to Reform the Electricity Sector 2021-30 (Electricity Pact) was signed, with a view to providing a universal, high quality, efficient, reliable, resilient, and environmentally and financially sustainable electricity service. The objectives of the Electricity Pact include integrating the CNE[the National Energy Commission] into MEM[the Ministry of Energy and Mines], rather than being a unit attached to the Ministry, and to eliminate the support for electricity tariffs.

4.78.   (...) The private sector can undertake electricity generation activities, although the generation of hydroelectric power in excess of 5 MW is an activity reserved to the State. The state-owned Empresa de Generación Hidroeléctrica Dominicana (Dominican Hydroelectric Power Company) (EGEHID) has a monopoly in this regard. (...)

4.82.   Generation, transmission and distribution activities in the electricity sector are subject to a concessions system. Where electricity is to be generated from renewable sources, the CNE[the National Energy Commission] must first grant a provisional concession before a final concession can be awarded. (...) Applications for conventional electricity generation and distribution must be filed with the SIE[the Electricity Supervisory Authority], while those for electricity generation from primarily renewable sources must be filed with the CNE. (...)

4.84.   Under the General Law on Electricity, 20% of the electricity bought on the wholesale market must come from the spot market. However, this target has not been met, as the spot market supplies only 6–7% of electricity. The proportion of electricity bought under long-term contracts or on the spot market varies depending on the distributor and the year in which the contract was signed. According to the authorities, this is because the preferred method for purchasing electricity has been long-term contracts between generating and distributing entities, in particular, since 2015, in an effort to promote investment in renewable energies and in new generation facilities. (...) In 2021, the direct sale of clean energy to distributors, without the CDEEE[Dominican Corporation of State-Owned Electricity Companies] serving as an intermediary, was approved.[122]
[122] Decree No. 608-21. In 2021, the CNE[the National Energy Commission] issued a price recommendation for long-term renewable energy purchase contracts with distributors.

4.85. In order to encourage the development of renewable energies, the Dominican Republic continues to offer incentives to promote the production of clean electricity and biofuels (Section 2.4.1). In 2015, the incentives regime was extended to include the production of energy from biomass and solid residues, as well as geothermal energy.[124] In addition, in 2020, new incentives were introduced for energy and material recovery plants, with recovery processes including solid waste co processing. Efforts to promote renewable energies have resulted in a total installed capacity of 677 MW from renewable energy facilities under 24 final concessions granted during the period 2015–21.$
[124] Law No. 57-07, as amended by Laws No. 253-12 and No. 115-15, and Decree No. 202.08. The incentives set forth in the Law were not amended but rather extended to include other renewable energy producers.

4.86. The tax foregone as a result of renewable energy incentives during the period 2014–21 amounts to USD 252.7 million, disaggregated as follows: exemption from import taxes (41%, mainly for large scale projects); exemption from the ITBIS[the tax on the transfer of industrialized goods and services] (31%); and tax credits (28%). With regard to the fourth renewable energy incentive, namely the tax reduction on external financing, no applications have been received.