Recently, The World Bank approved a loan of $400 million to support the Dominican Republic government’s initiatives to increase the energy sector’s accountability, transparency, and efficiency. Loan will increase access to affordable energy and will support the switch to cleaner, low-carbon energy sources.
Since 2014, the deficit created by the power sector has made up between 1 and 2.3 percent of the nation’s GDP, placing a considerable fiscal burden on the government and impeding the development of a resilient, inclusive, and green economy. The Dominican Republic (DR) generates the majority of its energy using imported fossil fuels, which results in significant greenhouse gas emissions (GHG) and disproportionately adverse effects on poor and vulnerable households due to unpredictable availability to essential electricity services.
Electricity Reform for Sustainable Growth Development Policy Loan (DPL), will continue to assist reforms in the Dominican Republic energy sector.
Decarbonizing the transportation sector, promoting the adoption of energy efficiency measures to reduce GHG emissions, strengthening the grid code to enable more dependable, affordable, and resilient electricity services are some of the major reforms supported by the DPL. These reforms also include effective mechanisms to improve the efficiency of the distribution companies.