According to data from ProDominicana, the country has recorded the largest flow of foreign direct investment during the last five years.
According to official data, in recent years, the Dominican Republic has registered a highly significant increase in Foreign Direct Investment (FDI) in energy generation, mainly in renewable energy.
According to information shared by the Export and Investment Center of the Dominican Republic (CEIRD – ProDominicana), FDI flow for the energy sector during the last five years totaled USD 1,942 million, “positioning itself as the fourth largest foreign investment sector and contributing an approximate of 12.7% of the total FDI received by the country for the years 2018-2022”.
According to the entity, the renewable energy sector has become one of the most dynamic in terms of FDI reception and the number of projects installed and expansions.
ProDominicana states that in recent years, this sector has received important projects, especially those of renewable energy sources and that these have significantly improved the energy matrix of the Dominican Republic.
Furthermore, “in 2022, this sector experienced its highest historical value, registering investment flows of more than USD 753 million and a year-on-year growth of 171%”
Between 2019 and January-September 2023, energy investments reached the highest historical figure, with US$827 million, and a 20% growth compared to 2022.
ProDominicana says that in January – September 2023, the energy sector consolidated its position as the main recipient of FDI.
In 2019, the total amount invested in the energy sector was US$371 million, doubling this figure in January-September 2023 to US$827 million.
According to ProDominicana, investments in the last five years were: in 2019 US$371 million; in 2020 US$354 million; in 2021 US$227 million, in 2021 US$698 million and the nine months of the last year 2023 US$827 million.
In a note from the Presidency of the Republic, Minister of Energy and Mines, Antonio Almonte, recently stated: “If we look back at selected periods, it is evident that in the period 2021-January-September 2023, the country accumulated the extraordinary sum of USD 1,858.5 of FDI in the energy sector, almost double the FDI of the 2017-2020 period, almost triple that received in 2013-2016 and 2010-2012.”
Economy
In the latest report on the preliminary performance of the Dominican economy for the year 2023, the Central Bank (BCRD) indicates that foreign direct investment (FDI) amounted to US$4,381 million, equivalent to an increase of around 9.2% compared to the amount received in 2022.
The report indicates that of the total FDI registered in the country in 2023, the evolution of the tourism, energy, and real estate sectors stands out.
Meanwhile, the National Energy Commission (CNE) published the integration of 11 renewable energy projects into the system and states that are another 23 rapidly advancing towards their integration for 2024 and 2025.
Currently, around 17% of the Dominican energy matrix is based on clean energy and, according to government officials, work is underway to reach 20%.
NEW PROJECTS
ENERGY
1,451 MW are currently under construction, to enter the system between 2024 and 2025, so by the end of 2025, between 2,600 MW and 2,700 MW of renewables will be introduced. This production means the country will save US$400 million, by next year 2025, said Minister Almonte to the Listín Diario.
TENDERS
There is also an 800 MW project in Manzanillo, a natural gas terminal; and 400 MW for quick needs, of which 378 MW have been installed, 200 MW in Boca Chica, and 178 MW in Azua.
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