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COSTA RICA HAS DECIDED TO GO FOR A TARGET OF 100 % RENEWABLE ENERGY BY 2021 COSTA RICA Over a century ago, San Jose became the third city in the world and the first in Latin America to light up its streets with electric power [54]. In 1984, 25 lamps powered by a small hydroelectric plant were the first steps towards a bright and clean future for Costa Rica [55]. Today, the country is close to achieving another milestone in the country’s energy history: to become the first 100 per cent renewable energy-powered country in Latin America. As for many countries in Latin America, climate change is the biggest threat to its power system. Among the many dangers climate change poses to the region, it is likely to have significant impacts by reducing rainfall [56][57]. Shifts in rainfall patterns could particularly imperil generation of electricity by hydropower [58], Costa Rica’s main source of electric generation. Aware of the risks of a single major source of power generation, the government has decided to go for a target of 100 per cent renewable energy by 2021. Ultimately, the target aims to boost the penetration of non-hydropower technologies and diversify options for electricity supply, but also to pursue a carbon neutral economy [59]. Costa Rica is perhaps the greatest renewable energy paradise in the whole Central American region. The country is privileged by its 223,000 GWh a year of potential hydroelectricity, out of which at least 10 per cent are already economically exploitable [60]. It is also among other countries in the region with the largest geothermal potential: up to 2,900 MW are available for it’s’ exploitation [61]. Finally, due to its geographical location, Costa Rica enjoys excellent potential for generating wind energy, with speeds between 4.8 and 5.6 m/s [60]. Today, Costa Rica is taking every opportunity to exploit its renewables. One decade ago, total installed capacity of geothermal and wind power was 145 MW and 62 MW respectively. By 2012, total installed capacity of geothermal and wind power grew to 217 MW and 148 MW respectively. An additional 210 MW for geothermal power and 215 MW of wind power are expected to be in operation throughout the next decade [58]. By 2013, total clean energy installed capacity (excluding large hydroelectricity) reached over 900 MW [2]. In 2013, Costa Rica generated some 10,100 MWh of electricity out of which 87 per cent were from renewable energy sources. Although the majority came from hydropower generation, around 20 per cent of the total renewable electricity was generated from non-hydropower renewables [62]. With these figures, Costa Rica establishes itself among the leader countries in Latin America for non- hydro renewable power generation14. Costa Rica is a regional leader in implementing policies that favour renewables. The country has established at least two key mechanisms that have facilitated the penetration of renewables to the power mix. Firstly, a specific technology auction system, which by 2012 allowed 138 MW of additional clean energy capacity to be contracted (38 MW small hydro; 100 MW wind power) [7]. Secondly, a programme to promote local generation by consumers, who can sell surplus energy back to the grid. Under this program, a total of 5 MW of additional capacity was made available by small producers who connected their solar, wind, biomass, and small hydropower or cogeneration systems to the grid. By early 2012, 225 kW of additional clean electrical capacity were achieved (mostly from solar sources) [61]. Thanks to its great potential and its favourable policies, Costa Rica has created an attractive environment for renewable energy financing. During the period from 2006 to 2013, its US$50 billion economy attracted over US$1.7 billion funding for renewable energy projects [51]. In 2013 a record US$600 million were committed to renewables. Around 40 per cent of that went straight to non-hydro renewables [2]. 14 In 2012, El Salvador and Nicaragua were the largest producers of non-hydro renewable electricity relative to total electricity production: 24 per cent and 21 per cent respectively [63]. WWF | Green Energy Leaders: Latin America’s Top Countries In Renewable Energy | Page 10PDF Image | Latin Americas Top Countries In Renewable Energy
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