The US government has approved the construction of a submarine cable to allow the interconnection of the Dominican Republic's and Puerto Rico's power grids, Dominican president Luis Abinader said this week.
The cable will deliver 700MW from natural gas-fired projects in the Dominican Republic, its energy ministry told Argus.
The 145km (90-mile) line will support Puerto Rico's efforts to overcome persistent blackouts caused by insufficient generation and repeated damage to the island's grid by hurricanes.
The development — called Project Hostos — will cost $1.7bn-2bn, according to the ministry, and will be developed by power transmission developer CTDC, a subsidiary of Puerto Rican private equity financier Atabey Capital.
The project needed US presidential approval and permission from the US Department of Energy to overcome a prohibition on the transmission of electric energy between the US and a foreign country.
"The interconnection project with Puerto Rico strengthens the security and stability of the Dominican electrical system," Abinader said.
Washington's approval follows a progressive reversal of several plans by Puerto Rico's government to expand renewable power to ease the territory's power woes.
Puerto Rico's governor Jenniffer Gonzalez has advocated for the development of fossil fuel-powered electricity, effectively abandoning a struggling effort to advance renewable power sources.
Initial power for the project will be from a 470MW gas plant at Boca Chica, in the Dominican Republic's south, that is being developed by Spain's TSK Group.
It is adjacent to a 250,000m³ gas storage facility operated by US firm AES and domestic natural gas firm Enadom.
There are no timelines for the project's start and completion.
