President Luis Abinader He affirmed this Monday that despite the unprecedented global crisis that affected the fuel market in 2022, the Dominican Republic did not suffer fuel shortages or electricity generation deficits.
When rendering accounts of his management, during the joint session of the legislative chambers, the president devoted a good part of his speech to highlighting the actions carried out by the government in favor of the electricity sector led by engineer Antonio Almonte, as Minister of Energy and Mines .
“In 2022 we suffered an unprecedented global crisis in the international market for natural gas, coal and oil derivatives, as a consequence of the war between Russia and Ukraine”, reported, to add that these resources are the main primary sources of electricity production in our country.
He said that: ”the war implied a gradual cut in the supply of gas from Russia to countries of the European Union that ended up generating a historic rise in the international price of fuel. Price that closed in 2022 at an average of 38 USD/MBtu and that at the end of August had reached the level of 99 USD/MBtu according to the European price marker”.
“For this reason, the total annual purchase bill from the distributors to the generators to meet the demand of the population increased by an additional 823 million dollars compared to 2021,” he revealed.
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However, he expressed that despite our almost absolute dependence on fuel imports and unlike what happened in other countries, the Dominican Republic did not suffer a fuel supply crisis or electricity generation deficit in 2022.
“On the contrary, We ended the year with a very stable electrical service, safe and in frank growth in thermal generation capacity and in renewables. Our government worked very closely with the generators, with the purpose of optimizing all the existing generation possibilities and the access to the required fuels”, he assured.
He said that in terms of electricity generation our government has focused on three main aspects:
First, guarantee that the supply or availability of power and energy is sufficient to supply the growing demand and maintain an adequate cold reserve. All this within the framework of an efficient cost and price structure.
Secondstimulate the flexibility and diversification of the generation park to avoid dependence on a single fuel.
And thirdpromote the installation of electricity generation based on renewable resources, mainly solar and wind.
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President Abinader indicated that these are principles and purposes clearly established in the government program of the Modern Revolutionary Party (PRM) and are also part of the essence of the proposals of the Electricity Pact on generation expansion plans and transparency in contracting. through competitive bidding.
He said that a few months after assuming the presidency in 2020, he gave instructions for the preparation of an international public tender to install 800 new megawatts in Manzanillo, Montecristi, together with a modern natural gas reception and storage terminal.
He added that, despite the severe restrictions and difficulties imposed by the pandemic, this tender was launched in March 2021 and construction work began last December.
“That tender was larger and more complex than the one in Punta Catalina and yet it was carried out in complete transparency, without complaints or challenges, in such a way that private companies that participated and did not win, publicly acknowledged the tender committee for conducting the process,” the president emphasized.
He said that as a result of this competitive process, exceptionally competitive energy and power prices were obtained in comparison to other similar processes in the local history of that market.
“In the construction of this great 800 MW thermoelectric complex in Manzanillo, the State will not invest a single penny of its budget nor will it go into debt or incur cost overruns as happened with Punta Catalina, but will limit itself to buying through long-term contracts the energy and power that distributors need”said.
He specified that in order to have an idea of the competitiveness of this project, the energy distribution companies will acquire the kilowatt per hour produced by this plant, at a price 15% lower than those purchased from Punta Catalina.
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In Manzanillo, President Abinader also indicated that it is not just an energy project, but that it goes much further, “it will be a motor for the development of the region with a new port, the construction of which will be awarded in April to begin construction in July ”.
He informed that this public initiative already has promoted local private investment with investments such as the Hotel Super 8 by Wyndham Manzanillo, already inaugurateda shipyard project and a modern container terminal, as well as the construction of another private natural gas generation plant with its gas pipeline and transmission line for an investment of US$585 million dollars.
All of this, he stated, demonstrates the multiplier effect of a minimal public investment that is generating more than US$2.3 billion in private investment, and that will transform the Manzanillo Bay and the Montecristi province, and will boost the economic activity of other northwestern demarcations such as Dajabón, Valverde and Santiago Rodríguez.
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