One of the largest wind farms in the Dominican Republic, the Pecasa project is a key driver of the country’s energy transition. Located in an area suffering from unreliable energy supply, the project represents first equity investment in the Caribbean of Siemens Financial Services (SFS).
The Dominican Republic (D.R.) is vulnerable to many environmental impacts associated with climate change, including rising sea levels, coral bleaching and an increased frequency of tropical storms. Since fuel imports account for nearly 80% of the country’s energy needs, it has set a target to cut greenhouse gas emissions by 25% by 2030.
To diversify the country’s energy mix and ease its dependence on imported fossil fuels, wind farms such as the Pecasa project are pivotal to driving the country’s energy transition.
Developed by French company, Akuo Energy, the Pecasa wind farm is one of three recent equipment and service orders for Siemens Gamesa Renewable Energy (SGRE) in the D.R. Leveraging a new joint go-to-market approach established with Siemens Financial Services (SFS), SGRE’s developer clients – such as Akuo – can tap into SFS’s expertise not only on Siemens’ technology, but on the nuances of project finance and renewable energy investment.
Having access to financial experts to guide and advise on the appropriate funding structure and investment strategy is a value-add we bring to customers as Siemens Gamesa. When SFS steps in to take a co-ownership stake in our projects, it underscores their confidence in our equipment and long-term service ability, as well as the overall viability of the project.Jorge Lobatón, Managing Director Onshore Latam for Siemens Gamesa
As co-owner, SFS is taking a 33% ownership stake in the project alongside Akuo. SGRE’s order includes engineering, supply, delivery, installation and commissioning of 25 turbines. Once complete, the project will supply 50 MW of power to the country.
This project represents SFS’s first renewable equity investment in the Caribbean and an important project for SGRE as it seeks to expand its footprint in the Latin American region.
SFS’s investment in Pecasa is supporting Akuo as they make additional infrastructure improvements in the surrounding community which is positively benefitting local citizens.
Not only is this our first wind investment in the Caribbean, there is a commitment to supporting the communities located near the site that we’re really proud to be part of. The project’s development not only provides local employment opportunities, but also improvements to infrastructure – such as access to clean drinking water – and so Akuo has been able to help provide this vital resource to residents living in a drought-prone area.Steven Mayo from Siemens Financial Services - Equity Finance
Author: Jillian Lukach