Aligning biodiversity management with lender requirements and good practice in the Dominican Republic’s solar sector
The nation's ambition
The Dominican Republic is accelerating its shift towards renewable energy, driven by a strong commitment to sustainable development and decarbonisation. The country has set ambitious targets to ensure that renewable energy accounts for 30% of electricity generation by 2030, as established in the National Development Plan and supported by the National Energy Plan and a robust legal framework.
Recognised as one of the most attractive renewable energy markets in Latin America, the Dominican Republic secured more than USD $1 billion in foreign direct investment in 2023. Between 2020 and 2024, the country nearly doubled its renewable energy capacity. Solar power is leading this growth, with its share of electricity generation expected to rise from 8% in 2024 to 17% by 2025.
Project purpose – aligning projects with lender requirements and good international industry practice
The Biodiversity Consultancy supported developers and lenders on evaluating and managing biodiversity risks for eight solar projects, representing a combined planned capacity of approximately 400 MW. Our role was to ensure that the projects are aligned with international biodiversity and sustainability standards including IFC Performance Standard 6 (PS6), and good international industry practice (GIIP).
The challenge – preserving biodiversity while scaling a national energy transition
The Dominican Republic harbours a remarkable diversity of ecosystems and species, with particularly high levels of endemism among reptiles, vascular plants, and birds. Several regions are recognised for their exceptional biodiversity, including the Sierra de Bahoruco, Barbacoa-Casabito subregion, and Sierra de Neiba - areas that support some of the highest concentrations of endemic species in the country.
Critical wetland ecosystems such as Lake Enriquillo, Laguna Cabral (Rincón Wildlife Refuge), Bajo Yuna Mangrove National Park, and the Jaragua Wetlands are designated as Ramsar sites, underscoring their global ecological significance. Together with Cuba, the island of Hispaniola contributes the majority of biodiversity found in the Caribbean islands, which collectively form one of the world’s 36 recognised biodiversity hotspots.
This ecosystem and species richness is increasingly at risk due to habitat loss and degradation, primarily driven by agricultural and livestock expansion and tourism development, particularly along the coast and mining. In this context, the rapid growth of renewable energy infrastructure, including solar, must be carefully planned and implemented to avoid or minimise, and as a last resort offset for adverse impacts on biodiversity, in alignment with national/international legislation and GIIP.
Our approach – using good practices for biodiversity assessment and mitigation to meet lenders' requirements
The Biodiversity Consultancy provided biodiversity advisory services for solar energy development, ensuring that projects meet lender requirements (including IFC PS6) and national regulations. Between 2023 and 2025, we have supported eight solar projects across the Dominican Republic, working with developers, lenders, their advisors, local consultants, and stakeholders.
These projects include:
1. Due diligence for a financial institution
TBC conducted biodiversity due diligence for six solar projects totalling 140 MW of installed capacity for a financial institution. One project posed significant biodiversity risks due to potential Critical Habitat for endemic, restricted-range reptile species, compounded by data gaps, methodological limitations, and questionable feasibility of proposed mitigation and offsets.
TBC reviewed existing assessments, engaged with local experts, and identified key areas requiring improvement. We concluded that residual impacts on Critical Habitat were likely creating a compliance risk with lender exclusion criteria.
2. Identifying biodiversity risks
TBC led biodiversity assessments for two solar projects of 55 MW and 200 MW. We designed and implemented a Biodiversity Baseline Study for the 55 MW project and conducted a Critical Habitat Assessment (CHA) for both sites. We collaborated with local biodiversity experts to carry out tailored field surveys aimed at confirming the presence of Critical Habitat-triggering species and habitats identified during the desktop phase.
Field surveys confirmed the presence of Critical Habitat-qualifying species at the 200 MW project site, requiring the project to demonstrate a Net Gain in line with IFC PS6. While no Critical Habitat was found for the 55 MW project, its location in Natural Habitat required the project to meet a No Net Loss target.
3. Identifying impacts and setting the mitigation strategy
Following the identification of biodiversity values and priorities, TBC supported the developers in impact assessment and mitigation planning.
For the project involving Critical Habitat, TBC facilitated a mitigation workshop with project stakeholders to present findings and collaboratively develop avoidance, minimisation, and offset strategies.
For the second project, TBC conducted a detailed biodiversity impact assessment, including a quantitative residual impact analysis to update and complement the existing ESIA. We then developed a comprehensive Biodiversity Mitigation Strategy and Biodiversity Action Plan, incorporating stakeholder input and defining appropriate offset measures, additional conservation actions, and a framework for a Biodiversity Monitoring and Evaluation Plan.
The outcome - enabling biodiversity compliance for solar investment
Our work with solar energy clients in the Dominican Republic has facilitated the identification and assessment of key biodiversity risks and opportunities to potential investors and developers. By developing measures which follow the mitigation hierarchy, we ensured that these projects are in line with IFC PS6, national regulations, and GIIP — guaranteeing essential regulatory compliance for these businesses as they progress towards the Dominican Republic’s 2030 renewable energy target.
