The Dominican Republic will open the technical bids today for the EDES-LP-NGR-01-2025 tender, aimed at awarding up to 600 MW of new renewable generation projects combined with battery energy storage systems (BESS) under long-term power purchase agreements (PPAs).
The event takes place on 20 February in Santo Domingo and marks the start of the technical evaluation phase of a highly competitive process. A total of 32 solar PV and wind power projects have been submitted, representing approximately 2,960 MWp — nearly five times the available capacity — placing significant downward pressure on final prices ahead of the economic evaluation stage.
According to a market source consulted by Energía Estratégica, expected tariffs for solar PV projects with integrated battery storage could range between USD 60 and 80 per MWh, depending on financing structures, load factors and BESS configuration.
This pricing band reflects a more mature renewable energy market compared to previous tenders, alongside a continued decline in technology and financing costs. However, the storage component introduces technical and operational complexities that directly impact capital expenditure (CAPEX) and the tariff structures proposed by developers.
“The sector has very positive expectations regarding the boost this tender will provide to the sustainability of renewable energy projects connected to the grid,” said Rafael Velazco Espaillat, senior consultant.
Velazco added that the bidding pool includes projects that have already secured Definitive Concessions, as well as others that must obtain approval before the close of the process — further broadening the competitive landscape.
He also noted that the economic component of the tender could enhance competitiveness in the wholesale electricity market. The combination of long-term PPAs and significant oversupply may reset benchmark prices within the national power system.
A key feature of the tender is the mandatory integration of battery energy storage systems (BESS). This requirement responds to the need to strengthen grid stability amid growing renewable energy penetration.
The Dominican Republic already exceeds 2,700 MW of installed solar and wind capacity. Energy planning forecasts nearly 2 GW of installed solar PV capacity by 2027, alongside the accelerated deployment of 600 MW of energy storage. Regulatory adjustments are also underway to define specific rules for batteries and their participation in the electricity market, including grid integration and remuneration mechanisms.
The tender reflects a structural shift in the country’s energy transition strategy, where storage is no longer optional but a core element of system reliability and flexibility.
Timeline of the Tender Process
| Milestone | Date |
|---|---|
| Opening of technical bids | 20 February |
| Announcement of shortlisted economic bids | 7 April |
| Award decision window | 27 April – 5 May |
| Final closing of the process | 27 May |
While today’s session does not determine final awards, it formally initiates the decisive stage of the procurement process.
Although the current call will award only a fraction of the total submitted capacity, the strong participation has sparked debate within the sector. Several industry stakeholders are already suggesting either an expansion of the awarded capacity or the launch of a second bidding round in the coming months.
With nearly 3 GW competing for 600 MW of long-term contracts, the outcome of this tender could significantly influence renewable energy pricing, investment in renewables, and battery storage deployment across the Caribbean region.
