The United States government has approved the presidential permit required for the construction of a submarine power cable linking Puerto Rico and the Dominican Republic, clearing a major regulatory hurdle for what is set to become one of the Caribbean’s most ambitious energy infrastructure projects.
Although the U.S. Department of Energy (DOE) has not yet issued a formal public notification, the Caribbean Transmission Development Company (CTDC) confirmed it has received “no objection” clearances from both the U.S. Department of State and the Department of Defense. A public announcement is expected in mid-February.
CTDC President Rafael Vélez Domínguez said the official announcement is scheduled for February 17 in the Dominican Republic and is expected to be attended by Dominican President Luis Abinader, Puerto Rico Governor Jenniffer González, and representatives of the U.S. government.
While the DOE’s website still lists the permit application as “pending,” Vélez Domínguez said the company is preparing to move ahead once the federal process is formally completed. This includes issuing purchase orders for the submarine cable.
The project would allow for the transmission of up to 700 megawatts of electricity in both directions, significantly strengthening energy security for both Puerto Rico and the Dominican Republic. In the Dominican Republic, the cable would connect to a new natural gas-fired power plant being developed specifically for the project. In Puerto Rico, it would link into the island’s electricity grid through the Mayagüez substation.
Several steps remain before construction can begin. CTDC must finalize power purchase agreements with the Puerto Rico Electric Power Authority (PREPA), secure fuel supply contracts, obtain environmental and regulatory approvals in both jurisdictions, and raise an estimated US$2.5 billion in financing.
CTDC is targeting January 2031 for the cable to become operational. In its initial phase, the project is expected to supply a portion of Puerto Rico’s electricity needs. Over the longer term, it could also facilitate the export of surplus solar energy from Puerto Rico to the Dominican Republic.
If completed, the initiative would mark the first electrical interconnection in the Caribbean, joining more than 160 cross-border power links currently operating between the United States, Canada and Mexico.
