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2.1 Costa Rica and Its Electricity Sector Costa Rica has a Gross National Product (GNP) of US$45,105 million and a GNP per capita of US$9,596 (2012), which has increased an average of 4.9 percent during the last decade. Costa Rica has abundant natural renewable resources that could be used to produce energy (hydro, solar, wind, and geothermal power). In recent years, there have been important changes in the country’s energy policies, as well as in the technologies. The government is planning to provide incentives to renewable energies for electricity generation. Comprehensive information on the electricity sector in Costa Rica is found in the document “The Electrical Sector in Costa Rica (Principal Characteristics)”.3 That information is summarized in the following paragraphs. The main entities in the Costa Rican electrical sector are the Ministry of Environment and Energy (Ministerio de Ambiente y Energía, or MINAE) and ICE. The prevalent governmental actor in the electricity sector is the ICE, who is in charge of drawing up the strategic national plans (medium and long term) for developing the electrical sector. One of its responsibilities is to guarantee the equilibrium between supply and demand of electricity. The Expansion Plan for Electric Generation (2012– 2024) was published in 2012; it presented a number of objectives for the following 12 years, including developing big hydro projects such as Reventazón, Diquís, Pacuare, and Savegre, and promoting the diversification of the generation sources. In addition, it noted that the Central American Electrical Interconnection System (SIEPAC, for its acronym in Spanish) is important in the electricity sector in the country. The Central American market would be developed very fast in the coming years, with the possibility of greater volumes of energy to be exchanged through SIEPAC. Since 1990, Costa Rica has allowed power generation by private sector actors in a limited way. Law 7200 allows private generation to be up to 15 percent of the total generation of the National Electric System (Sistema Eléctrico Nacional, or SEN). With the current law, private generation could reach up to 30 percent of the total installed capacity, which represents about 883 MW (see Table 2.1). Electricity distribution and commercialization in Costa Rica are done by eight public companies and there is no participation of private companies, besides ICE. Seven public companies carry out distribution and commercialization: Compañía Nacional de Fuerza y Luz, two municipal companies (Jasec and Esph), and four cooperatives. 3. U. Zúñiga, “El Sector Eléctrico en Costa Rica, Principales Características” (PDF document), www.nuca.ie.ufrj.br/gesel/pdf.V.SISEE/1.13.pdf. 14PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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