March 21, 2016 |
Ask any government official, investor or analyst about the largest constraint on the Dominican Republic’s economy, and they’ll likely point to energy.
The Caribbean country’s power sources are dirty and costly, creating a massive drain on public finances when crude prices are high. Electricity shortages are common, complicated by major problems with publicly run power transmission and distribution systems. The government reports that, in the 10 years through 2015, it transferred $9 billion to the power sector to cover deficits in the operating system — more than it spent on health care.
“The energy sector has always been a challenge in the country; that is well documented and markets know th
Scarce and costly energy resources are the biggest constraint facing the Dominican Republic’s economy. But a clutch of fresh initiatives in the sector could finally change the picture.