In a significant move that could reshape the renewable energy landscape in the Dominican Republic, Ecoener has secured a $43.1 million loan from Proparco, the French Development Finance Institution. This substantial investment is set to bolster Ecoener’s financial foundation and propel its renewable energy initiatives in the region. The funds will be channeled into the Payita 1 solar photovoltaic (PV) plant, a 60MW facility nestled in the province of María Trinidad Sánchez. This project is not just a financial boon for Ecoener but also a testament to the Dominican Republic’s commitment to sustainable energy.
The Payita 1 project adheres to the International Finance Corporation’s (IFC) stringent sustainability performance standards. These guidelines ensure that the project is not only environmentally sound but also socially responsible. By identifying and mitigating environmental and social impacts, the project aims to set a benchmark for sustainable development in the region. Proparco’s evaluation of Ecoener’s construction quality and technology further underscores the project’s credibility and potential for long-term success.
The solar plant is backed by a robust $142 million in secured revenue over the next 15 years, courtesy of a long-term power purchase agreement (PPA) with Edenorte, a leading energy sale and distribution company in the Dominican Republic. This financial stability will enable Ecoener to strengthen its financial base and expand its operations. Ecoener chairman Luis de Valdivia expressed gratitude for Proparco’s trust, highlighting Ecoener’s capacity to develop fully sustainable projects that meet the highest international social and environmental standards.
The Dominican Republic is poised to become Ecoener’s primary market, with Payita 1 and 2, and Cumayasa 4 PV solar plants set to start operations this year. These additions will bring the total installed capacity of Ecoener’s facilities to nearly 280MW. Payita 1 alone is expected to produce 118.4GWh, enough to power 29,600 households. The clean energy generated will prevent 64,173 tons of CO₂ emissions annually and reduce fossil fuel consumption by 10,182 tons per year. This environmental impact is a significant step towards the Dominican Republic’s ambitious goal of increasing the share of electricity production from renewable energy sources.
This development is a game-changer for the renewable energy sector in the Dominican Republic. It not only underscores the growing importance of sustainable energy but also highlights the potential for foreign investment in the region. The success of the Payita 1 project could inspire similar initiatives, driving the sector towards a more sustainable future. The collaboration between Ecoener and Proparco sets a precedent for international partnerships that prioritize environmental and social responsibility. As the Dominican Republic continues to invest in renewable energy, it is likely to attract more global players, fostering a competitive and innovative energy market. This news challenges the status quo, encouraging other countries to follow suit and invest in sustainable energy solutions. The ripple effect of this investment could be profound, shaping the future of renewable energy not just in the Dominican Republic, but across the globe.
