Santo Domingo.- The recent signing of a contract to install a 500 megawatt plant from India by the CEO of the State-owned Power Companies (CDEEE) Celso Marranzini, has piqued the interest of the local market’s agents grouped in AIDE, who note that all actions which technically and institutionally bolster the sector are positive.

AIDE cautions however that given their investments in the country and the trust earned during years of economic stability, the already established power companies should be the first option in any intention to materialize new investments in the generation sector.  

“We stress the investments which the generating companies have materialized in the last few years. For example, EGE-Haina will have a 33 megawatt wind park which will be largest in the Caribbean installed for June 2011. We can also mention the numerous investments which AES has realized with natural gas, in such a manner that it has positively contributed to improve the energy matrix,” AIDE said in a statement.

It said the power companies Laesa recently expanded its electrical generation, and Seaboard is prepared to install a new 100 megawatt, natural gas-fired plant. It also revealed that the companies CEPP and San Felipe explore the possibility of expanding their generation park.

“We understand that certain caution should exist when offering information which in one way or another spurs certain distrust among the existing companies that are investing and will continue investing in the electrical generation sector. We make the proposal because although the installation of diverse generation projects have been announced in the last few years, they haven’t materialized, and that situation has generated noise among investors,” the power companies said.

AIDE added that it accepts the need to continue expanding the grid but notes that a large part of the electricity problem is in its distribution and marketing, for which the CDEEE’s actions aimed at reducing the nontechnical losses and making the distributors more efficient should continue.

Energy czar responds

Marranzini on Tuesday responded AIDE’s concerns and noted that the already established power companies don’t face any hurdles for new investments in the industry.

He stressed however that in the generating sector there hasn’t been a push to materialize important investments to expand the energy park in the last few years and that “the plan to reconvert generating units to work with less expensive and more efficient fuels has been very difficult and hurdle-strewn.”