PRESS RELEASE

CDEEE will contract plants that convert to natural gas

By
Thursday, February 7, 2019

The Dominican Corporation of State Electric Companies (CDEEE) initiated a process of facilitation to the generation companies that operate with fuel oil as fuel in the East region, so that they can convert their units to natural gas and thus lower the generation costs.

For such purposes, the Executive Branch granted a Special Power, through decree 62-18, to the executive vice president of the CDEEE, Rubén Jiménez Bichara, who has already finalized negotiations for the conversion of at least 730 megawatts of plants located in the region. East of the country.

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Jiménez Bichara informed that electric generation companies that decide to convert their plants to natural gas will benefit from a PPA (Power Purchase Agreement) or power purchase agreement for terms of between seven and ten years.

"These contracts have as a condition that they must establish energy prices at a low cost, in accordance with the price of natural gas, in addition to their effectiveness will only be effective if and only if the investment is made and the conversion to which it is committed becomes a reality. the generating company, "the official said. "If the conversion does not become effective, automatically the contract is without effect, without financially compromising the State," he added.

In addition, if for one reason or another the plant already converted to natural gas is forced to produce with a different fuel, it must sell the energy at the contracted price as if it were using that fuel or at a lower price, if the substitute fuel It is cheaper at that time.

CONVERSION IN PROCESS

After the power granted by President Danilo Medina to the owner of the CDEEE, an agreement has already been signed with the San Pedro de Macoris Electric Company (CESPM), formerly Cogentrix, which will convert its 300-megawatt plant to natural gas and will benefit from a 10-year PPA contract, as of its conversion, as a way to recover your investment while selling less expensive energy for the National Interconnected Electric System (SENI).

Likewise, the CDEEE is in the process of negotiating with the Electric Generation Company EGE Haina, in order to convert its 215 megawatt Quiequeya II plant to natural gas.

The 215 megawatt Quisqueya I unit is also in the process of being converted, from the Barrick Pueblo Viejo mining company, which uses that plant for its private operation, but places its surplus in the SENI, so that the part that is put online could be purchased through a reduced cost contract.

The electric generation companies located in the eastern region of the country that operate with fuel oil as fuel oil have been motivated to convert to natural gas, after the announcement of the company AES Dominicana to build a pipeline to be extended from its terminal. Andrés, in Boca Chica, to San Pedro de Macorís.

In addition, of the CESPM and Quisqueya I and II units, San Pedro de Macorís operates the Sultana del Este generators with 150 megawatts and the Origins of 60 megawatts, which also have potential for conversion to natural gas in the future.

This CDEEE release was published using an automatic translation system.