He United States Rocky Mountain Institute believes that the plan for the massive installation of solar panels announced last week in the country is a replicable model for other nations in Latin America, Africa and Asia that They have electricity subsidy.
In a report addressed to donors from the United States and the rest of the world, he indicates that the announced plan is an effective strategy that will convert the electricity subsidy from fossil fuels into solar energy in the Dominican Republic.
It points out that the Dominican Republic allocates $2 billion a year in subsidy payment, which is equivalent to 11% of the national budget this year, to guarantee that the almost 2.8 million households in the country can have electricity.
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Explain that this subsidy pays between 35 and 60% of all electricity consumption by each consumer to offset the high costs of fossil fuels.
However, this subsidy is “a band-aid” to face the serious problem of importing increasingly expensive fossil fuels, in an increasingly unstable world.
It’s a negative feedback loop in which the subsidy is higher and with no prospect of ending, the report points out.
“The subsidy supports the burning of fossil fuels to allow for greater energy consumption, which further increases the need for the subsidy,” he says.
