The Dominican Republic has formally opened its electricity storage market to private capital. The state-owned transmission company Empresa de Transmisión Eléctrica Dominicana (ETED) launched an expression of interest (EOI) to develop 600 MW of battery energy storage systems (BESS) with a two-hour duration — equivalent to 1,200 MWh of installed capacity.
The initiative is designed to reduce renewable energy curtailment, strengthen grid stability and support the continued expansion of solar PV and wind power across the country’s National Interconnected Electric System (SENI).
From a financial standpoint, the proposal is structured under a BESS-as-a-Service model, allowing private developers and infrastructure funds to:
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Develop, finance and operate the storage assets
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Enter into long-term contractual arrangements
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Secure an estimated 15-year revenue horizon
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Target a projected 11% internal rate of return (IRR)
According to sector sources, the framework aims to balance contractual predictability with bankability, positioning the Dominican Republic as an emerging market for private investment in utility-scale energy storage.
This approach reduces the need for direct public capital expenditure while accelerating the deployment of grid-scale flexibility solutions.
Operationally, the BESS facilities are expected to provide critical ancillary services, including:
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Primary and secondary frequency regulation
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Fast Frequency Response (FFR)
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Ramp rate control
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Black start capability in the event of widespread outages
The modular design will enable phased deployment at strategic nodes across the SENI. This architecture is intended to optimize existing transmission infrastructure, reinforce critical substations and enhance operational flexibility in high renewable penetration scenarios.
A central objective of the initiative is to mitigate renewable curtailment — a growing challenge as solar and wind generation at times exceed the grid’s absorption capacity.
By storing excess electricity during low-demand periods and dispatching it during peak hours, the BESS fleet will:
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Improve dispatch efficiency
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Reduce technical constraints
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Increase renewable energy utilization
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Support system reliability
This strategy aligns with broader regional trends toward integrating energy storage to facilitate grid integration and maximize renewable energy output.
In parallel with ETED’s expression of interest, the Dominican Republic is advancing a separate 600 MW generation tender that incorporates BESS solutions. The process has already received offers totaling 1,546.06 MWp, signaling strong private-sector appetite for hybrid renewable-plus-storage projects.
The coexistence of both mechanisms — a dedicated 600 MW storage EOI and a generation tender including BESS — establishes a clear policy roadmap toward systemic flexibility and long-term modernization of the Dominican power sector.
Key Parameters of the 600 MW BESS Initiative
| Item | Detail |
|---|---|
| Capacity | 600 MW |
| Duration | 2 hours |
| Total Energy | 1,200 MWh |
| Business Model | BESS-as-a-Service |
| Contract Horizon | 15 years |
| Estimated IRR | 11% |
| Core Objective | Curtailment reduction & grid stability |
With this move, the Dominican Republic positions itself at the forefront of Caribbean energy transition strategies, leveraging private investment in energy storage to enable higher renewable penetration, enhance grid resilience and modernize its power market architecture.
