Dominican Republic relies on imported fuel to support more than 80% of its domestic energy needs. Special reliance on Venezuelan oil has resulted in uncertain energy supplies and increased cost to government. Three quasi-private utilities and two state-controlled utilities currently supply the grid. Electricity theft at all levels of consumption presents a large problem. Overall, Dominican Republic consumes more than 7.4 MTOE (54.32 MBOE) of energy per year, with 2.05 MTOE (15.05 MBOE) supporting power generation.
Dominican Republic is the primary tourist destination in the Caribbean market. Hotels represent 43% of total energy use in the commercial and service sector in Dominican Republic and energy represents the second highest cost in hotel operation. There are approximately 55,000 hotel rooms in the country; 61% of these are in hotels with more than 300 rooms. 83.4 % of electricity for hotels in the country is provided by the grid; it is estimated that large hotels produce close to 20% of the electricity they consume. Surveys indicate that this energy generation absorbs 11.5% of the net income of hotels.
In an attempt to reduce the amount of energy consumed in Dominican Republic hotel sector, the Alliance, with funding from USAID seeks to raise awareness on energy- and money-saving improvements that can be made in the island’s booming hotel industry.