During the 2025 edition of Dominican Week in the United Kingdom—a high-level institutional and business forum focused on international cooperation—experts analysed the critical role of energy storage in the Dominican Republic’s clean-energy transition. Speaking at the event, Rafael Velazco Espaillat, senior energy consultant, stressed that the country must fast-track the deployment of Battery Energy Storage Systems (BESS) and Pumped Hydro Storage (PHS) to maintain the stability of the National Interconnected Electrical System (SENI).

With the rapid integration of solar PV and wind power, storage becomes indispensable for providing operational flexibility and enabling higher renewable penetration. The transmission network is already showing signs of congestion, and existing bottlenecks could jeopardise system reliability if no corrective action is taken.

In recent years, the National Energy Commission (CNE) introduced new regulations to accelerate storage adoption. Resolutions CNE-0004-2023 and CNE-0005-2024 require renewable energy projects above 20 MW to include storage systems sized at 50% of installed capacity, with a minimum duration of four hours. However, these rules still present regulatory and economic gaps that hinder efficient deployment.

Currently, the framework only compensates storage through energy arbitrage, which is insufficient to drive sustainable investment. Velazco argued that a modern electricity market should incorporate payments for ancillary services—such as fast frequency response, short-term reserves, and frequency regulation—along with a capacity mechanism that signals long-term value.

According to the consultant, it remains unclear whether government authorities have the tools needed to meet the country’s goals. He stressed that the Dominican Republic must add at least 500 MW of BESS within the next three years to ensure grid stability amid growing renewable energy penetration.

The urgency became evident on November 11, 2025, when the SENI collapsed and was left operating with only 41 MW of available capacity, compared to nearly 3,000 MW of prior demand. A failure at the San Pedro de Macorís substation triggered a chain reaction marked by loss of inertia, insufficient frequency support, and inadequate protection coordination. It was the most severe blackout since 2015, highlighting the vulnerability of the system without modern technical support or regulation for ancillary services.

Comparing the Dominican Path with the UK Model

The event also showcased the contrast with the United Kingdom, which already has close to 6 GW of BESS in operation or development and aims to surpass 26 GW early next decade. The British experience demonstrates how a supportive regulatory framework and clear price signals can accelerate renewable energy integration and grid flexibility.

Long-duration storage emerged as another strategic element. Although the Dominican Republic currently lacks operational pumped hydro capacity, the state-owned utility EGEHID (Hydroelectric Generation Company of the Dominican Republic) has launched three tenders totalling 1,050 MW. These projects aim to provide critical services such as dynamic frequency response, capacity contracts, rotational stability, and black-start capability.

Financing remains a key barrier. Pumped hydro projects involve high CAPEX and long payback periods, requiring revenue-stabilisation mechanisms and predictable market rules to attract private investment.

From a technical standpoint, Velazco argued that islanded and semi-islanded systems benefit most from adopting a diverse storage portfolio. Globally, policies are shifting toward combinations of short-duration batteries, pumped hydro, liquid-air energy storage (LAES), and flow batteries, reducing dependency on a single technology such as lithium-ion.

“Technological diversity is essential for a resilient energy transition,” Velazco noted, emphasising the need for long-term planning to ensure a stable, reliable, and decarbonised power system.

His warning was clear: without storage expansion, the rapid growth of renewable energy could compromise the technical operation of the grid.

“If at least 500 MW of battery storage are not deployed in the short term, it will be difficult to manage the national grid with stability,” he concluded.