En Costa RicaThe possible opening of the electricity market is a recurring topic on the political and economic agenda. For more than two decades, various sectors of society have discussed the advisability of transforming the current, predominantly state-run model into an open market that would allow for greater competition and dynamism. This conversation revolves primarily around the impact it would have on the country's competitiveness, energy costs, and investment attraction.
Currently, the Costa Rican electrical structure is focused on the Costa Rican Institute of Electricity (ICE) as the main player, with a dominant role in generation, transmission, and distribution. However, business leaders and industrial associations have pointed out that this configuration no longer meets the country's current needs and It represents a barrier to economic growth and the diversification of renewable sources.
A historic debt: the electricity market waiting to be opened
The idea of ​​liberalizing the electricity market is not new. Since the 90s there have been proposals in the Legislative Assembly to allow greater private participation in generation and marketing, but these attempts have been thwarted by political debates, social protests, and the protection of the state model. A particularly significant episode occurred in 2020, when the initiative known as the "ICE Combo" was approved with the aim of promoting competition in strategic sectors such as energy and telecommunications. However, the Constitutional Court ultimately declared several sections of the project illegal and halted progress in the electricity sector.
Meanwhile, the country did experience openness and free competition in telecommunications, allowing users to choose between several operators. However, The electricity reform remains stalled, accumulating more than 25 years of debate without materializing.. This delay represents a missed opportunity to advance the development of renewable energy and ensure more competitive prices compared to other markets.
Immediate challenges in the face of growing demand
According to analysis of the Chamber of Industries of Costa Rica, it is projected that Demand for electricity will increase by 47% by 2040, a figure that illustrates the need to quickly advance solutions to avoid shortages, tariff increases, and increased use of polluting sources. The impact of climate phenomena such as El Niño and La Niña, in addition to global climate change, adds pressure to a system that requires agility to adapt.
The main argument of those who support the opening is that allowing the entry of more private actors would facilitate investment in renewable generation projects, integrated planning and more efficient resource management. The business sector considers it essential that new projects be awarded through competitive auctions, where the ability to offer energy at lower costs prevails, benefiting both consumers and the national economy.
The cost of electricity and its impact on investment
One of the central concerns is the high price of electricity in the country. The average cost for the industrial sector is 13,8 cents per kWh, more than double that of the United States, where it is around 7,95 cents per kWh. This difference has been pointed out by the Association of Free Trade Zones as a major obstacle to attracting international companies, especially in the current context, where industrial relocation is a priority for countries like the United States.
The lack of competition and the existence of a "single-buyer" model—in which only ICE can acquire electricity generated by private companies and under restrictive scale conditions—are aspects criticized by the productive sector, which sees how cost overruns are passed on to consumers and hinder industrial development.
Business demands: efficiency, transparency and reforms
Businessmen are showing their concern about the efficiency in the management of state energy projects. In the last twenty years, several projects led by ICE have experienced significant delays and cost overruns, resulting in an additional expenditure of almost 1.800 millionFor example, the Reventazón project doubled its initial budget, and others, such as the DiquÃs project, were abandoned after significant investments. These problems fuel the demand for greater openness to private capital and a commercialization that takes advantage of public infrastructure but allows for open agreements between companies.
Representatives such as Jorge Esteban Padilla (Matelpa) emphasizes that the state model was historically key, but the market and technology have evolved. They insist that the generation and sale of electricity should be open to private companies without restrictions., ensuring greater efficiency and more competitive rates for all consumers.
How the Costa Rican energy mix is ​​currently composed
Currently, the country It has a mostly renewable energy matrixAccording to recent data, the hydroelectricity It contributes more than 57% of all the energy generated, accompanied by the geothermal and wind with more than 11% each. Thermal energy still accounts for around 16%, while solar potential It is still testimonial, with less than 1% of the total contribution.
Among the projects with the greatest weight in the national grid are solar initiatives in Liberia, Nandayure, Abangares, Carrillo and Cañas, and wind farms in Tilarán and BagacesThese are examples of options that could be expanded if more private actors were facilitated and the auction and contract award system were improved.
The political vision: proposals and resistance to reform
On the political level, the issue of openness continues to generate division. While some parties are advancing initiatives to modernize and harmonize the electricity sector, other forces have halted the discussion or blocked the processing of bills. The positions are debated between protect state employment and public view of the service, and the need to gain competitiveness and adaptability.
The debate is not only about who should manage the electrical system, but also about How to balance the public interest with efficiency and attracting new investmentFor some political leaders, reducing energy costs and opening up the market are key to reactivating the economy and improving employment, always within a framework of fiscal responsibility and transparency.
The opening of the electricity market continues to be at the center of national debate. Meanwhile, pressure from business owners and industrialists to secure cheaper, diversified and sustainable energy It faces political resistance and doubts about the social impact of such a reform. The future of the sector will depend on the ability to find a formula that combines efficiency, competitiveness, and the commitment to sustainability that characterizes Costa Rica.
