New Fortress Energy charters FSRU for LNG terminal in the Dominican Republic

ENB Pub Note: I added the energy mix for the Dominican Republic.

Key Points
  • Research suggests the Dominican Republic’s power mix in 2025 includes natural gas at 42%, coal at 24%, and renewables at around 30%.
  • It seems likely that solar (17%), wind (7%), hydropower (5%), and biomass (1%) make up the renewable share, exceeding the 25% target.
  • The evidence leans toward fuel oil at 4%, with projections from late 2024 aligning with current figures, though actual data for early 2025 shows renewables at 23% in January.
Current Power Mix
The Dominican Republic’s power mix for 2025 is estimated to be:
  • Natural gas: 42%
  • Coal: 24%
  • Solar: 17%
  • Wind: 7%
  • Fuel oil: 4%
  • Hydropower: 5%
  • Biomass: 1%
This mix totals 100%, with renewables (solar, wind, hydropower, biomass) at around 30%, based on projections from November 2024, which likely reflect the current situation as of May 2025.
Context and Targets
The country aimed for 25% renewable energy by 2025, and recent data suggests this target may have been exceeded, with renewables at 23% by the end of 2024 and projected to reach 30% in 2025. Natural gas and coal remain significant, reflecting the country’s reliance on fossil fuels, while efforts to boost solar and wind are evident.

Comprehensive Analysis of the Dominican Republic’s Power Mix in 2025
The Dominican Republic’s power mix, which refers to the composition of energy sources used for electricity generation, is a critical indicator of its energy strategy, particularly given its goals to increase renewable energy and reduce reliance on imported fossil fuels. This analysis synthesizes recent data and projections to provide a detailed overview of the power mix as of May 2025, drawing from official reports, industry analyses, and international energy statistics.

Historical Context and Policy Framework

The Dominican Republic has been actively pursuing energy diversification since passing the Renewable Energy Incentives Law (57-07) in 2007, aiming to increase the share of renewable energy in electricity generation to 25% by 2025 Trade.gov: Dominican Republic – Renewable Energy. This target is part of broader efforts to reduce dependence on imported fossil fuels, enhance energy security, and meet climate commitments, including a 27% reduction in greenhouse gas emissions by 2030 relative to business as usual, as outlined in its Nationally Determined Contribution (2020 revision) Global Energy Monitor: Energy profile: Dominican Republic.
Historically, fossil fuels, particularly oil, have dominated the energy mix, with oil accounting for 52% of electricity generation in 2017, down from 89% in the 1980s and 1990s, while natural gas and coal contributed 21% and 13%, respectively, in the same year Global Energy Monitor: Energy profile: Dominican Republic. Renewables, including hydro, wind, solar, and biofuels, accounted for 15% of electrical generation in 2020, up from 12% in 2019, reflecting steady growth Global Energy Monitor: Energy profile: Dominican Republic.
Recent Trends and 2025 Projections
Research suggests that by 2025, the Dominican Republic’s power mix has shifted significantly, with projections from November 2024 indicating the following breakdown, based on announcements by Energy and Mines Minister Joel Santos during the Perspectives on the Electric Sector for 2025 forum NetZeroCircle: Dominican Republic Commits to 25% Renewable Energy by 2025:
  • Solar: 17% (up from 8% in 2024)
  • Wind: 7% (up from 6%)
  • Fuel oil: 4% (down from 8%)
  • Coal: 24% (down from 30%)
  • Natural gas: 42% (steady)
  • Hydropower: 5% (steady)
  • Biomass: 1% (steady)
This mix totals 100%, with renewables (solar, wind, hydropower, biomass) at 30%, exceeding the 25% target. The increase in solar and wind reflects significant investments and policy support, while the decline in fuel oil and coal aligns with efforts to reduce emissions.
However, recent data from January 2025 indicates that at the end of 2024, renewable energy accounted for 23.32% of the nation’s total generation capacity, marking a 137% increase since 2020, according to the Ministry of Energy and Mines (MEM) Dominican Today: Renewable energy powers 23% of Dominican Republic’s electricity. This suggests that while the country was close to its target by the end of 2024, the projected 30% for 2025 may reflect planned additions in early 2025, particularly in solar and wind.
Regional and Sectoral Dynamics
The dominance of natural gas at 42% underscores its role as a key component, likely due to investments in LNG import terminals and gas-fired power plants, as noted in historical feasibility studies ECPA: Greening the Power Grid in the Dominican Republic. Coal, at 24%, remains significant, though its share has declined, reflecting global trends toward cleaner energy. The growth in solar (17%) and wind (7%) is driven by generous tax incentives, including 100% tariff exemptions on imported equipment, as part of the Renewable Energy Incentives Law Trade.gov: Dominican Republic – Renewable Energy.
Hydropower, at 5%, and biomass, at 1%, contribute smaller shares, with hydropower likely limited by seasonal variations and biomass by scale. Fuel oil, at 4%, has seen a significant reduction, aligning with efforts to phase out less efficient and more polluting sources.
Economic and Environmental Impacts
The shift toward renewables is supported by investments, with clean energy investment reaching $402.05 million in 2023, a 17.88% increase from 2022, according to Climatescope 2024 Climatescope 2024 | Dominican Republic. This investment, coupled with regulatory reforms, aims to attract domestic and international funding, with plans for $450 million (£432 million) between 2025 and 2028 for transmission lines and substations NetZeroCircle: Dominican Republic Commits to 25% Renewable Energy by 2025.
Environmentally, the increased renewable share supports the country’s climate targets, though challenges remain, including grid integration and ensuring generation adequacy, as noted in IRENA’s Renewable Energy Prospects IRENA: Renewable Energy Prospects Dominican Republic.
Challenges and Uncertainties
The discrepancy between the 23% renewable share at the end of 2024 and the projected 30% for 2025 highlights potential uncertainties, such as delays in project commissioning or variations in demand. Additionally, the reliance on fossil fuels, particularly natural gas and coal, poses risks to long-term decarbonization goals, especially given the country’s susceptibility to hurricanes, which can disrupt energy infrastructure ECPA: Greening the Power Grid in the Dominican Republic.
Conclusion
Research suggests that the Dominican Republic’s power mix in 2025 is likely dominated by natural gas at 42%, with coal at 24%, and renewables at around 30%, comprising solar (17%), wind (7%), hydropower (5%), and biomass (1%). This exceeds the 25% renewable target, reflecting significant progress, though actual figures for early 2025 may align more closely with the 23% reported in January. The evidence leans toward continued growth in renewables, driven by policy support and investments, though challenges in grid integration and fossil fuel reliance remain.
The following table summarizes the projected power mix for 2025, based on November 2024 projections:
Energy Source
Percentage (%)
Natural Gas
42
Coal
24
Solar
17
Wind
7
Fuel Oil
4
Hydropower
5
Biomass
1
Key Citations

US-based LNG player New Fortress Energy has executed a three-year charter agreement for the Energos Freeze FSRU with Energía 2000 in the Dominican Republic.

The 125,000 cu m floating storage and regasification unit will be deployed to Energía 2000 LNG import terminal in Pepillo Salcedo (Manzanillo) port and is expected to commence operations in September 2025.

The unit will provide LNG regasification services to support power generation and industrial energy demand across the region.

“This charter agreement reflects our continued commitment to expanding energy access in the Caribbean through strategic partnerships and world-class LNG infrastructure,” said Wes Edens, chairman and CEO of New Fortress Energy.

Source: Splash247.com

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About Stu Turley 4698 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.