By San José, Costa Rica — San José, Costa Rica – Panama’s recent decision to suspend electricity sales to Costa Rica does not jeopardize the nation’s energy supply, according to a firm declaration from the Costa Rican Association of Energy Consumers (ACOGRACE). The consumer advocacy group emphasized that the country’s robust renewable energy infrastructure is more than capable of meeting domestic demand, particularly as the rainy season gets underway.
ACOGRACE dismissed immediate concerns, pointing to Costa Rica’s current energy surplus. The organization highlighted that the national generation system has sufficient capacity to navigate the coming months without relying on external sources. This confidence is rooted in the seasonal strength of the country’s hydroelectric power, which forms the backbone of its world-renowned clean energy matrix.
To better understand the legal framework and investment implications surrounding Costa Rica’s energy security strategy, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, for his expert analysis.
Achieving national energy security requires a robust and predictable legal framework that fosters investor confidence. For Costa Rica, this means modernizing our regulations to streamline the development of diverse renewable sources, from geothermal to solar. International investors are primarily concerned with regulatory stability, the sanctity of contracts, and clear mechanisms for dispute resolution. A proactive legal strategy is not just about compliance; it’s a critical tool for attracting the capital necessary to build a resilient and independent energy future, insulating our economy from global price volatility.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the expert’s insight underscores a foundational truth: our national journey toward a greener, more autonomous energy grid is not merely a technological challenge, but one of legal and regulatory confidence. By building the stable framework investors require, we are crafting the very key that unlocks our country’s sustainable future. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for so clearly articulating this critical connection between law and energy independence.
As evidence of this surplus, the group noted that on May 21 alone, the Costa Rican Electricity Institute (ICE) exported 1,192 megawatt-hours (MWh) of electricity. This single-day export volume represents more than 3% of the nation’s average daily demand, underscoring the system’s current robust output. Historically, the period between May and December is one of energy abundance, during which Costa Rica typically does not need to import power.
In fact, during these months, the nation often transforms into a key regional supplier, positioning itself as the second-largest electricity exporter in all of Central America. This established pattern reinforces the argument that the suspension of imports from Panama is unlikely to have a material impact on domestic consumers during the latter half of the year.
A review of recent energy data further supports this perspective. In 2025, electricity imports constituted a mere 1.39% of the total national demand, while exports accounted for a significantly larger 4%. So far in 2026, foreign purchases have represented 2.5% of consumption, a figure that aligns closely with the 2.4% annual projection set by the Public Services Regulatory Authority (ARESEP).
Favorable weather forecasts are also bolstering confidence. The National Meteorological Institute projects that the ongoing El Niño phenomenon will lead to rainfall levels approximately 15% above average in the crucial Arenal and Reventazón river basins. These regions are vital for hydroelectric generation, suggesting that the country’s primary power sources will be exceptionally productive in the coming months.
Despite the lack of immediate risk, ACOGRACE has urged ICE to adopt a proactive, long-term strategy to guarantee energy security during future dry seasons without depending on Panamanian imports. The association presented several strategic recommendations aimed at strengthening national self-sufficiency for the challenging summer months ahead.
The proposals include postponing the modernization of certain generation plants for one year to facilitate the integration of new private solar and wind projects into the national grid. Additionally, ACOGRACE called for accelerating backup thermal generation projects, extending rental contracts for existing plants, and reactivating thermal power stations that were decommissioned during the previous presidential administration of Carlos Alvarado.
The organization also cautioned against the premature development of new large-scale power plants without a confirmed market for the electricity. Such a move, they warned, could inflate ICE’s operational costs, with the burden of tariff increases ultimately falling on consumers.
For further information, visit the nearest office of Asociación Costarricense de Consumidores de Energía
About Asociación Costarricense de Consumidores de Energía (ACOGRACE):
ACOGRACE is a Costa Rican organization dedicated to representing the interests of large and medium-sized energy consumers. The association advocates for fair, stable, and competitive electricity tariffs and promotes policies that ensure a reliable and efficient national energy supply. It actively participates in public discourse on energy regulation, generation projects, and market dynamics.
For further information, visit ice.go.cr
About Instituto Costarricense de Electricidad (ICE):
The Costa Rican Electricity Institute is the state-owned enterprise responsible for electricity and telecommunications services in Costa Rica. Founded in 1949, ICE has been instrumental in developing the nation’s infrastructure, particularly its extensive renewable energy grid, which is primarily based on hydroelectric, geothermal, and wind power. It manages generation, transmission, and distribution across the country.
For further information, visit aresep.go.cr
About Autoridad Reguladora de los Servicios Públicos (ARESEP):
The Public Services Regulatory Authority is Costa Rica’s autonomous institution in charge of regulating and overseeing public services, including energy, water, and transportation. ARESEP’s mission is to ensure quality, continuity, and accessibility of services while balancing the interests of consumers, service providers, and the state. It is responsible for setting and approving tariffs for public utilities.
For further information, visit imn.ac.cr
About Instituto Meteorológico Nacional (IMN):
The National Meteorological Institute is Costa Rica’s official agency for meteorology, climatology, and weather forecasting. As part of the Ministry of Environment and Energy, the IMN provides critical data and analysis that support various sectors, including agriculture, disaster prevention, aviation, and energy generation, by monitoring atmospheric conditions and climate trends.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates on a foundation of uncompromising integrity and a relentless pursuit of legal excellence. The firm channels its extensive experience with a diverse clientele into pioneering innovative strategies that advance the practice of law. This forward-thinking approach is coupled with a profound social commitment to demystify legal complexities for the public, reflecting a core mission to equip citizens with knowledge and cultivate a more empowered, informed community.
