The renewable energy sector, particularly solar energy, has experienced exponential growth over the...
Costa Rica Renewable Energy Investing
Costa Rica’s renewable energy market stands out among emerging market countries due to its high level of commitment to renewables, long-term strategic planning, and its geographic advantages.
The Costa Rican Institute of Electricity (ICE) was created in 1949. As a public institution, ICE was required by law to guarantee the provision of energy for the country. Today, the country is a net exporter of electricity.
Not only has Costa Rica been a hotspot for U.S. tourism, but it has also attracted U.S. manufacturers due to its strategic location, skilled workforce, economic incentives, and stable energy infrastructure.
As Costa Rican renewable energy continues to expand, there are opportunities for investors both from the United States and around the world to participate in this emerging energy market.
Let's first examine some data about Costa Rica's energy market.
Costa Rica Electricity Generation Facts
In 2024, low-carbon sources in Costa Rica supplied 94% of the nation's total energy output. Here is the breakdown.
- Hydropower (70.1%)
- Geothermal (12.6%)
- Wind (10.2%)
- Solar (0.6%)
- Biomass (0.5%)
Leveling the Risks
While electricity generation is distributed across various sources, the allocation of hydropower is disproportionately high when considering the impact of periodic droughts. The Costa Rican Institute of Electricity had to ration electricity in mid-2024 due to drought conditions.
Costa Rica is countering climatic risks by diversifying its energy sources away from its heavy dependence on hydropower.
Expanding Wind Energy
One of the suggestions made by LowCarbonPower.com is that Costa Rica can focus on expanding its wind, solar, and possibly nuclear energy installations to increase the generation of low-carbon electricity.
However, compared to nuclear energy plants, solar farms and wind turbines require less investment and have shorter project timelines to begin producing electricity.
Geothermal energy projects also take longer to develop than solar and wind energy. For example, the Miravalles Geothermal Project commenced in 1988 and was commissioned seven years later. In contrast, wind turbine installations take approximately half the time to complete.
An Investment Opportunity in Costa Rica Renewable Energy
Accredica is co-developing a utility-scale wind farm in an excellent wind resource region in Costa Rica with an investment-grade power off-taker.
To learn more, please schedule a meeting with me.
Charles Schaffer
President and Founder, Accredica
Charles has founded and operated several development companies over his 35+ year history to pursue his passion for Alternative Investing. He believes outsized returns can be achieved without a corresponding increase in risk. Under Charles' leadership, Accredica has developed and financed over $160 million of commercial real estate and renewable energy projects.