US Grants Presidential Permit for $2.5 Billion Cable Linking Puerto Rico and Dominican Republic Grids
San Juan, Friday, 27 February 2026.
The U.S. Department of Energy has approved Project Hostos, a $2.5 billion privately funded undersea cable connecting Puerto Rico and the Dominican Republic. Slated for operation in 2031, this critical infrastructure aims to stabilize Puerto Rico’s fragile grid and power over 600,000 homes.
Strategic Infrastructure Approval
On February 26, 2026, the Caribbean Transmission Development Company (CTDC) announced it had received a Presidential Permit from the U.S. Department of Energy (DOE) for the Hostos Energy Interconnection, also known as Project Hostos [3]. This permit, required under Executive Order 10485 for cross-border energy transmission facilities, allows CTDC to construct and operate transmission infrastructure crossing the international maritime boundary in the Mona Passage [3]. The project is a privately funded initiative valued at $2.5 billion designed to link the electrical grids of the Dominican Republic and Puerto Rico [3]. By connecting these island nations, the project aims to bolster energy security and provide a reliable power source for the equivalent of more than 600,000 Puerto Rican homes once operational [3].
Technical Specifications and Partnerships
The infrastructure plan is anchored by a 500 megawatt (MW) high-voltage direct current (HVDC) submarine interconnection cable [3]. While some regional reports suggest the transmission capacity could reach up to 700 MW in both directions [1][4], the primary project specifications detail a 500 MW capacity supported by a new combined-cycle power plant in San Pedro de Macorís, Dominican Republic [3]. This plant will utilize gas and steam turbine technology to generate power, which will then be transmitted via a 90-kilometer overhead line and a 150-kilometer subsea line before connecting to Puerto Rico’s grid through a 6-kilometer cable at the Mayagüez Substation [3]. To execute this complex engineering feat, CTDC has partnered with Siemens Energy to supply both the combined-cycle power plant and the necessary AC-to-DC converter stations [3].
Economic Impact and Future Timeline
Beyond its utility function, Project Hostos is projected to generate significant economic activity, creating over 1,500 construction jobs and an estimated $150 million in economic impact during the build phase [3]. However, the path to energization is long; CTDC plans to activate the cable in January 2031 [1][4]. Despite securing the Presidential Permit—described by Project Director Tirso Selman as the “first major milestone”—several regulatory and commercial hurdles remain [3]. The company must still finalize power purchase agreements with Puerto Rico’s Electric Power Authority, secure fuel supply contracts for the Dominican-based plant, and obtain approval from Puerto Rico’s Energy Bureau along with other environmental permits [1][4]. Once completed, the interconnection is envisioned not only to supply Puerto Rico but also to enable the future export of surplus solar energy from Puerto Rico back to the Dominican Republic [1][4].