Climate Action 2010-2011

Regional Focus
Hydropower, geothermal and wind energy have energy-generating potential in
Costa Rica.
© Creative commons/flickr/Warrenski
Towards a
new energy
model for
Costa Rica
Teófilo de la Torre Arguello
Minister of Environment, Energy and Telecommunications for Costa Rica
Costa Rica is dependent on imported fossil fuels
for much of its energy supply and consumption is
rising. Costa Rica’s dependency on imported oil leaves
it vulnerable to the volatile prices of the international
oil market. Although electricity is largely generated
from renewable sources, there is great potential for
increasing renewable energy capacity. Government
plans to develop renewable energy, promote electric
vehicles and improve energy efficiency will help Costa
Rica become more self-sufficient and competitive
while fostering genuinely sustainable development.
At the current pace of discovery and production of oil,
it is estimated that reserves will be exhausted in 46 years,
causing a supply crisis and high prices that will have a
serious repercussions for importing countries such as
Costa Rica.
Costa Rica’s energy consumption
Costa Rica is a country rich in natural resources
that could be exploited for energy purposes yet its
development is based on the use of imported oil.
Commercial energy consumption in Costa Rica is
nearly triple that of 1989 levels and is predicted to
increase further, as shown in Figure 1. Over 60 per cent
of commercial energy consumption comes from oil and
oil derivatives. Electricity consumption has increased
markedly due to a rapid increase in electrification in both
residential and industrial sectors.
Oil consumption over the last 20 years has increased
by an average of 4.7 per cent year on year and electricity
by 5.3 per cent. At current growth rates, demand
for electricity will double in the next 13 years and
hydrocarbons in 15 years.
Costa Rica’s heavy dependence on fossil fuels, a result
of past promotional policies when international oil prices
were low, now leaves it vulnerable to price shocks and
insecurity of supply. The transport sector is responsible
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for over half of national energy consumption (51.2 per
cent), followed by the industrial sector (25.9 per cent) and
residential (10.5 per cent).
Costa Rica’s potential for renewables
According to figures from the Costa Rican Electricity
Institute, the country harnesses roughly a third of the
total estimated wind power available. Meanwhile, the
country’s installed capacity for hydroelectricity and
biomass are each less than a quarter of what could be
achieved. Only geothermal energy is close to reaching its
full potential with 63 per cent of what could realistically
be used for energy production being utilised.
Hydropower, geothermal and wind energy have energygenerating
potential in Costa Rica and projects to harness
these resources have proved successful. Biomass, crop
residues and biogas, is another key area for development.
Figure 1. Evolution of commercial energy in Costa Rica
Biomass includes bagasse, charcoal, coffee husks and other plants residues
www.climateactionprogramme.org
Source: Costa Rica Energy Entity (DSE).