For the second year in a row, 98% of the energy consumed in Costa Rica came from renewable sources. According to data from the state-run Instituto Costarricense de Electricidad (ICE), in 2016, 98.2% of the energy was renewable, coming from five types of clean energy: hydroelectric (74.39%), geothermal (12.43%), wind farms (10.65%), biomass (0.73%) and solar panels (0.01%).
In a statement from ICE, it was reported that the National Electric System (SEN) achieved 271 days of 100% renewable electricity production in 2016. This is the second consecutive year in which generation from clean sources exceeded 98%. In total, the country's electricity generation reached 10,778 gigawatt hours (GWh).
June 17 was the last day that thermal power generation using fossil fuels had to be used, which represented only 0.27% of the country's total electricity production in 2016.
El Niño Phenomenon
ICE stressed that, although 2015 was a year affected by the El Niño weather phenomenon, which causes a shortage of rain, and much of 2016 saw reduced rainfall, the water storage capacity in reservoirs was essential to maintaining clean generation.
Costa Rica also benefited from the entry into operation of the Reventazón hydroelectric plant, one of the largest in Central America and capable of generating 305.5 megawatts, equivalent to the electricity consumption of some 525,000 homes. In addition, there was an improvement in the optimization of reservoirs and the use of other renewable sources such as geothermal, wind, solar energy and biomass.
Evolution of renewable energy in Costa Rica
For 2017, Costa Rica projected that its renewable energy production would remain stable, with the addition of four new wind farms. This stability depended largely on the hydrometeorological conditions of the river basins that feed the hydroelectric plants. ICE President Carlos Obregón stressed that this planning made it possible to maintain a high level of renewable generation despite the climatic difficulties.
In 2023, Costa Rica maintained a renewable generation profile, although with a slight decline due to the return of the El Niño phenomenon. According to ICE, 94.91% of the energy generated that year came from clean sources, while total production reached 11,939.72 GWh.
The El Niño phenomenon caused a significant reduction in flows and affected hydroelectric production, which still generated 69.74% of total energy. Geothermal and wind energy contributed 12.39% and 12.24%, respectively, while biomass and solar energy accounted for 0.53%.
It is worth noting that the Reventazón Hydroelectric Project was the plant with the highest generation in 2023, contributing 923.17 GWh, equivalent to 7.73% of the total generation of the National Electric System (SEN).
Economic and social impact of renewable energy
The move towards renewable energy has had a significant impact not only on the environment, but also on Costa Rica’s economy. Investment in sustainable sources has attracted foreign investment, improved rural development and generated jobs. According to the Costa Rican Hydrogen Association, the production of green hydrogen through wind or solar energy could generate between 180,000 and 220,000 jobs by 2050.
In addition, the reduction in dependence on fossil fuels has allowed the country to better cope with fluctuations in oil prices, while maintaining a certain economic stability.
Challenges for Costa Rica's energy future
Despite these achievements, Costa Rica still faces significant challenges in maintaining its leadership in renewable energy. Drought and climate variability, exacerbated by climate change, have put pressure on the country's hydroelectric infrastructure. This has forced it to occasionally resort to purchasing fossil fuels and importing electricity to ensure supply.
Costa Rica has adopted measures such as the efficient management of reservoirs, mainly the Arenal reservoir, and the planning of energy purchases in the Regional Electricity Market (MER).
The transport sector remains one of the largest consumers of fossil fuels, challenging efforts for full decarbonisation. However, the push towards green hydrogen, electrification of transport and renewed interest in investments in alternative energies such as geothermal energy suggest the country is well on its way to a more sustainable future.
Finally, it is important to highlight that national demand continues to rise, with an annual growth of 5%, which shows that Costa Rica needs to continue prioritizing innovative and sustainable energy policies to remain a leader in clean energy worldwide.