The Dominican Electricity Transmission Company (ETED) formally opened the market to private investment in storage with the launch of a manifestation of interest to incorporate 600 MW of BESS capacity for 2 hours , which represents a preliminary sizing of 1200 MWh .
The scheme responds to technical criteria aimed at stabilizing the operation of the system and supporting the country's renewable growth.
From a financial point of view, the proposal is structured under a BESS-as-a-Service model, where private actors develop, finance and operate the assets under long-term contracts.
And according to what Energía Estratégica was able to find out, an estimated horizon of 15 years is detailed with a projected Internal Rate of Return (IRR) of 11% , configuring a scheme that seeks to balance contractual predictability and attractiveness for infrastructure funds and specialized developers.
At the operational level, BESS systems are designed to provide strategic services such as primary and secondary frequency regulation, Fast Frequency Response, ramp control, and black start capability in the event of massive blackouts.
"This approach reduces the need for direct state investment and accelerates the incorporation of utility-scale storage technology."
"This also positions the Dominican market as an emerging hub for private capital in energy flexibility solutions," sources from the sector stated.
The design includes a modular architecture that will allow the systems to be deployed progressively at strategic points of the National Interconnected Electric System (SENI) , in order to optimize existing infrastructure, reinforce critical nodes and provide operational flexibility in scenarios of high solar and wind penetration.
This means that one of the central axes of the project is the reduction of renewable energy curtailment , a phenomenon that intensifies when generation exceeds the absorption capacity of the system.
Storage will allow us to capture surpluses during off-peak hours and dispatch them during peak times, improving dispatch efficiency and reducing technical constraints.
Current tender for 600 MW with BESS
In parallel with the expression of interest launched by ETED , the Dominican Republic is moving forward with a tender for 600 MW that incorporates BESS systems , a process that has already received offers for 1546.06 MWp , demonstrating the strong interest of the private sector in participating in the Dominican market.
This level of oversupply confirms investor appetite for projects that combine renewable generation and storage, and reinforces the decision to structure BESS capacity on a systemic scale.
The coexistence of both processes – generation tender with storage and specific expression of interest for 600 MW of BESS – consolidates a clear roadmap towards the operational flexibility of the SENI and represents a structural leap in the modernization of the national electricity system.