Game-Changing Energy Project Approved for Puerto Rico-Dominican Republic Link

Caribbean Transmission Secures Critical U.S. Presidential Permit

In a significant development for energy infrastructure in the Caribbean, Caribbean Transmission Development Company (CTDC) announced the successful acquisition of a U.S. Presidential Permit for Project Hostos. This groundbreaking initiative will establish a high-voltage direct current (HVDC) submarine interconnection cable, allowing reliable power supply between the Dominican Republic and Puerto Rico, starting in 2031.

This U.S. Department of Energy permit represents a vital endorsement for the project, facilitating private investment in the region's energy landscape. The authorization enables CTDC to design, construct, and operate the necessary transmission facilities that will traverse the international boundary in the Mona Passage, a substantial step towards enhancing energy reliability in the Caribbean.

Project Hostos: A Vision for Energy Transformation

With an estimated cost of $2.5 billion, Project Hostos is entirely funded through private investment. The project encompasses key components such as:
- A 500MW combined-cycle power plant in San Pedro de Macorís, Dominican Republic.
- 90 km of overhead 345kv AC transmission line.
- 150 km of subsea 320kv HVDC transmission line.
- A 6 km underground cable connecting the port of Mayagüez in Puerto Rico to the island's electrical grid.
- AC-to-DC converter stations, crucial for converting power types.

Rafael Vélez, founder and President of Atabey Capital—CTDC’s founding investor—emphasizes the importance of private capital in solving Puerto Rico’s energy challenges. By initiating this project, CTDC aims to implement market-driven solutions essential for addressing the ongoing energy crisis without overly relying on federal assistance.

A Response to Energy Vulnerabilities

Given the recent hurricanes that have exposed significant vulnerabilities in Puerto Rico's energy infrastructure, Project Hostos promises an innovative solution. This new interconnection will not only facilitate ongoing power flow but will also enhance resilience against natural disasters. The bi-directional capability of the transmission cable ensures that Puerto Rico can receive power from the Dominican Republic in times of crisis, while also providing power back to the Dominican Republic when needed.

Moreover, opportunities exist within the project's framework to address the inefficiencies of aging thermal plants on the islands. This initiative will allow for the integration of renewable energy sources, offering a sustainable pathway toward a cleaner future.

Collaboration and Sustainability at the Core

CTDC is collaborating with Siemens Energy, taking advantage of their expertise in constructing both the power plant and converter stations. This partnership aims to leverage advanced technology that doubles the efficiency of the older systems currently in operation in Puerto Rico, correlating to substantial operational savings and reduced emissions by 3.8 million tons of CO2 each year.

Environmental stewardship is also a priority, with CTDC committing to rigorous marine and environmental assessments during the cable routing and installation phases. This commitment reflects in the comprehensive measures taken to ensure minimal disruption to local ecosystems.

Economic Impact and Job Creation

As the interconnected energy framework moves towards completion, Project Hostos is positioned to generate considerable economic impact. Beyond the environmental benefits, the construction phase will create over 1,500 jobs and generate more than $150 million in economic activity. Once operational, this project has the potential to provide power to over 600,000 homes in Puerto Rico, laying the groundwork for improved energy cooperation throughout the Caribbean.

Antonio Almonte, Minister of Energy and Mines in the Dominican Republic, aptly notes that the project pays homage to 19th-century philosopher Eugenio María de Hostos, aligning with the vision of regional unity and shared prosperity. As Project Hostos progresses, it set the stage for a collaborative energy marketplace in the Caribbean, fostering growth and resilience throughout the region.

For more information, visit Caribbean Transmission Development Company.