DR loses 1% of GDP due to climate change and would lose 17% by 2050

Martín Adames
5 Min Read

The Dominican Association of the Electric Industry (ADIE) highlighted the need to strengthen the resilience of the national electricity system in the face of growing risks associated with climate change, during the discussion “Resilience of the electricity system in the face of climate risks and extreme events,” which brought together authorities, representatives of the energy sector, international organizations, and risk management experts.

The president of ADIE, José A. Rodríguez, stated in his opening remarks that the development of the electrical system can no longer focus solely on producing more energy and incorporating new technologies, but must integrate resilience as an essential component to guarantee service continuity in the face of extreme events.

Rodríguez recalled that the Central Bank estimates that climate change generates annual losses of nearly 1% of the Gross Domestic Product (GDP), a figure that can rise to 10% of GDP when the country faces extreme weather events.

Likewise, he cited World Bank estimates, according to which the Dominican Republic could lose up to 17% of its potential GDP by 2050 if it does not strengthen adaptation and resilience measures. However, he highlighted that timely investments in this area have the potential to reduce economic impacts by up to 60%.

“Strengthening the resilience of the electrical system is not solely a technical or environmental responsibility; it is a strategic investment to protect the economy, competitiveness, and national well-being,” stated Rodríguez.

The president of ADIE pointed out that the Dominican Republic, due to its insular condition, is exposed to hurricanes, floods, droughts, and heat waves that put the country’s critical infrastructure to the test. He indicated that when the electrical system is affected, the consequences directly impact fundamental services such as health, telecommunications, water supply, public safety, and economic activity.

The business leader stressed that international experience shows that the recovery of electrical systems after extreme events depends largely on prior planning, risk management, and coordination among the various actors involved.

“We are convinced that no institution or industry can face these challenges alone. Protecting essential infrastructure for the country requires a shared vision, collaboration between the State and the private sector, knowledge exchange, and decisions that transcend the short term,” he stated.

Experts analyze technical and financial resilience of the electrical system

The meeting included two specialized panels aimed at analyzing the main challenges and opportunities to strengthen the resilience of the national electricity system.

The first addressed technical vulnerability and the security of electrical infrastructure, with an emphasis on the measures necessary to reduce operational risks, strengthen service continuity, and improve emergency response capacity, with the participation of Milagros De Camps, Vice President of Sustainability and Corporate Affairs at InterEnergy Group; Fabio Oyola, Director of Operations at AES Dominicana; Alfredo Cuello, Director of Distribution at EDENORTE; Fernelis Ramírez, Director of Operations at the ETED Energy Control Center, and Jean Suriel, meteorologist and communicator.

The second panel focused on risk mitigation and financial resilience, where experts discussed the role of public policies, insurance mechanisms, and financial instruments that contribute to reducing the economic impact of disasters and accelerating recovery processes. Participants included Jorge Mena, Reinsurance Director at Seguros Universal; Leovigildo Soto Taveras, Senior Vice President and Corporate Risk Management Leader at Marsh; Martín Francos Rodríguez, Vice Minister of Planning and Public Investment at the Ministry of Finance and Economy; and Jesualdo Jimenes Bello, Director of the Electricity Market at the Ministry of Energy and Mines, moderated by journalist Ana López.

With this meeting, ADIE seeks to contribute to the construction of a shared vision regarding the challenges facing the electrical system in the face of the effects of climate change, promoting planning, innovation, and cooperation as pillars to strengthen the resilience of an infrastructure essential for the country’s development.

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