From January to May 2024, energy demand in Costa Rica grew by 8% compared to the same period last year. According to Marco Acuña, executive president of the Costa Rican Electricity Institute (ICE), electricity consumption is significantly higher than last year and exceeds the institution’s forecasted growth rate of 4% or less.
ICE’s plans indicate that from 2022 to 2030, a $4 billion investment is needed to upgrade infrastructure for the production, transmission, and distribution of energy. This represents 4% of the Gross Domestic Product (GDP). This investment would enable the country to add 1,200 megawatts of capacity to the electricity system to meet the growing demand.
“It’s a significant amount of money, and both the public and private sectors will need to make substantial efforts and remove barriers to these investments,” said Acuña.
Meanwhile, Vice Minister of the Environment Ronny Rodriguez highlighted that the growth in demand is expected and could increase further with the eventual arrival of the semiconductor industry, which will require even more energy.
To address this growing consumption, the country must seek new sources of energy. Acuña notes that Costa Rica has the potential to produce 32,000 megawatts from hydroelectric, onshore wind, and offshore wind sources, but investment is crucial to harness this potential.
ICE is currently working on a gas-fired power plant that will generate up to 400 megawatts. Additionally, the second tender for solar energy production will soon be opened, targeting customers in the Central and South Pacific regions.
The executive president of the Costa Rican Association of Energy Producers (ACOPE) believes the country neglected electricity generation in the past. He also emphasizes that for Costa Rica to attract new industries, it must ensure a reliable supply of quality energy. He further pointed out that while the private sector is willing to invest, significant legal uncertainty from current legislation poses a challenge.
The country is also discussing opening the electricity market, which is currently monopolized by the state through ICE. Many discussions need to be held soon to keep the country on track for economic growth.
