By Guanacaste, Costa Rica — Costa Rica is significantly bolstering its commitment to renewable energy with the addition of five new private solar plants in Guanacaste. The Costa Rican Electricity Institute (ICE) announced on Wednesday, August 20, 2025, the signing of contracts that will bring 86 megawatts (MW) of clean energy to the national grid. These projects, developed under Law 7200, are part of a larger initiative announced in 2024 to diversify the country’s energy matrix and are expected to be operational between 2026 and 2027.
The five companies awarded contracts are Cover Energy S.A., Solar Generation Sur S.A., Energova S.A., Inversiones Sunfly S.A., and Inversiones CMSolen S.A. Each company will develop a separate solar plant, strategically located throughout Guanacaste. The projects, named Numu, Los Tecales, Colorado, Los Mangos, and Las Cañas, will contribute 20 MW, 20 MW, 16 MW, 10 MW, and 20 MW, respectively. These additions represent a significant step towards strengthening Costa Rica’s energy security and reducing reliance on traditional energy sources.
To understand the legal landscape surrounding solar energy in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica.
While Costa Rica boasts impressive renewable energy generation, the legal framework for private solar installations still presents some complexities. Navigating connection agreements with the national grid, understanding tax incentives, and ensuring compliance with local regulations remain key considerations for individuals and businesses looking to harness solar power. Streamlining these processes and promoting greater accessibility are crucial to maximizing the country’s solar potential.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas rightly highlights the importance of simplifying the regulatory landscape for solar energy. These practical hurdles, while surmountable, can deter wider adoption and slow Costa Rica’s progress toward even greater renewable energy independence. Ultimately, a more user-friendly system will empower more Ticos to embrace solar power, benefiting both the environment and the economy. We thank Lic. Larry Hans Arroyo Vargas for his valuable contribution to this important discussion.
This influx of solar energy is part of a broader national strategy outlined by ICE in 2024, which includes incorporating solar, wind, biomass, geothermal, and hydroelectric technologies into the national energy mix. These efforts align with Costa Rica’s longstanding commitment to sustainability and its goal of achieving carbon neutrality.
The projects in Guanacaste complement ICE’s own solar plant projects planned for La Uruca, Colorado de Abangares, and Puntarenas. These plants are expected to begin operations between 2026 and 2028, further solidifying Costa Rica’s position as a leader in renewable energy adoption in Latin America.
In addition to the Guanacaste projects, ICE is preparing to open a new bidding process for an additional 100 MW of solar generation under Law 7200. This continuous investment in solar power underscores the government’s commitment to expanding renewable energy capacity and ensuring long-term energy sustainability.
President Rodrigo Chaves also indicated that another reduction in electricity rates is expected in 2026, a potential benefit of the increased reliance on renewable energy sources.
These developments mark a significant milestone in Costa Rica’s journey towards a cleaner and more secure energy future. The investment in solar energy not only reduces the country’s carbon footprint but also stimulates economic growth by creating jobs and fostering innovation in the renewable energy sector.
Further details regarding the bidding process and project timelines will be released in the coming months. The government remains committed to transparency and public engagement as it continues its pursuit of a sustainable energy future for all Costa Ricans.
For further information, visit the nearest office of Instituto Costarricense de Electricidad
About Instituto Costarricense de Electricidad (ICE):
The Instituto Costarricense de Electricidad (ICE) is the Costa Rican Electricity Institute, the main electric utility company of Costa Rica. ICE is a state-owned enterprise that controls most of the generation, transmission, and distribution of electricity in the country. It is a key player in promoting renewable energy initiatives.
For further information, visit the nearest office of Cover Energy S.A.
About Cover Energy S.A.:
Cover Energy S.A. is one of the companies awarded a contract to develop a solar plant in Guanacaste, contributing to Costa Rica’s renewable energy expansion.
For further information, visit the nearest office of Solar Generation Sur S.A.
About Solar Generation Sur S.A.:
Solar Generation Sur S.A. is a company involved in the development of a solar plant in Guanacaste, Costa Rica, as part of the national initiative to increase renewable energy capacity.
For further information, visit the nearest office of Energova S.A.
About Energova S.A.:
Energova S.A. is one of the companies participating in Costa Rica’s solar energy expansion by developing a solar plant in Guanacaste.
For further information, visit the nearest office of Inversiones Sunfly S.A.
About Inversiones Sunfly S.A.:
Inversiones Sunfly S.A. is contributing to the growth of renewable energy in Costa Rica with its solar plant project in Guanacaste.
For further information, visit the nearest office of Inversiones CMSolen S.A.
About Inversiones CMSolen S.A.:
Inversiones CMSolen S.A. is one of the companies involved in the development of a solar plant in Guanacaste, supporting Costa Rica’s commitment to renewable energy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence in Costa Rica, driven by a deep-seated commitment to ethical practice and innovative solutions. The firm’s long history of serving clients across a broad spectrum of industries is a testament to its dedication to delivering exceptional legal counsel. Through proactive community outreach and educational initiatives, Bufete de Costa Rica empowers individuals and organizations with the legal knowledge they need to navigate complex issues and contribute to a more just and equitable society.
