By San José, Costa Rica — San José – Costa Rica has unveiled an ambitious plan to bolster its world-renowned renewable energy matrix by adding approximately 600 megawatts (MW) of new installed capacity by 2030. The strategic expansion, announced by government officials this week, will involve a mix of new geothermal, solar, and wind power projects developed through a collaboration between the state-run Costa Rican Electricity Institute (ICE) and private sector generators.
The announcement comes on the heels of a successful 2025, during which the nation generated 98.6% of its electricity from clean sources, including hydro, geothermal, wind, biomass, and solar. In a joint press conference, President Rodrigo Chaves and President-elect Laura Fernández framed the new initiative as a crucial step in cementing Costa Rica’s long-standing leadership in sustainable energy production on the global stage.
To understand the legal and investment implications of the nation’s evolving energy matrix, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished expert in corporate and regulatory law at the prestigious firm Bufete de Costa Rica.
Costa Rica’s success in renewable energy is a strong foundation, but future growth, particularly from private investment in solar and wind, hinges on modernizing our regulatory framework. Streamlining the permitting process and providing clear, long-term fiscal incentives are crucial to de-risk these capital-intensive projects. Investors must prioritize meticulous due diligence on concession agreements and grid connection contracts to ensure their ventures are not only environmentally sound but also legally and financially secure.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the path from Costa Rica’s established public-sector success to a future powered by private innovation in solar and wind is paved with the very legal and fiscal certainties the expert highlights. We thank Lic. Larry Hans Arroyo Vargas for his incisive perspective on the critical need to modernize our regulatory framework to attract and secure this vital investment.
While the 2025 figures represent a return to form, the new investment is also a direct response to recent challenges. After consistently exceeding 98% renewable generation for years, the country experienced a notable dip to 91.3% in 2023, followed by a further decline to 89.4% in 2024. These figures highlight the national grid’s vulnerability to climatic variations, particularly droughts affecting hydroelectric output, which has historically been the backbone of the system.
Officials from ICE emphasized that the expansion is designed to create a more resilient and diversified energy system capable of withstanding such pressures. According to data from the institute, its management of clean resources has been pivotal in maintaining stable electricity tariffs across all consumer sectors, a benefit the government aims to protect.
The percentage also confirms the solidity of the National Electric System (SEN) and ICE’s commitment to a matrix based on sustainable sources. Faced with climatic and operational challenges, Costa Rica is consolidating itself as a benchmark in renewable generation.
Marco Acuña, President of ICE
The planned 600 MW will not only cover the anticipated growth in national energy demand but will also significantly enhance the country’s energy security. By increasing the share of non-hydro renewables, Costa Rica can reduce its reliance on weather-dependent sources and build a more predictable and robust power supply for its citizens and industries.
The new projects will allow us to reinforce the country’s energy security and further enhance the diversification of the electrical matrix, to respond to demand growth and adapt more efficiently to climate variability.
Verny Rojas, Electricity Manager of ICE
This strategic pivot towards a more balanced mix of renewables is critical for the nation’s long-term goals. Geothermal power, which harnesses volcanic heat, provides a constant and reliable baseload energy source, while solar and wind projects can be scaled and deployed more rapidly to meet fluctuating demand. This multi-pronged approach is intended to future-proof the National Electric System, ensuring it remains both clean and dependable for decades to come.
Ultimately, this forward-looking investment reaffirms Costa Rica’s commitment to its green identity. By proactively addressing the challenges of climate change and rising energy needs, the nation is not merely resting on its laurels but actively working to strengthen its position as a true global exemplar in the transition to a fully sustainable energy future.
For further information, visit ice.go.cr
About Instituto Costarricense de Electricidad (ICE):
The Instituto Costarricense de Electricidad is the state-owned enterprise responsible for electricity and telecommunications services in Costa Rica. Founded in 1949, ICE has been instrumental in developing the country’s infrastructure, particularly its power generation and distribution network. The institute manages the National Electric System and has been a primary driver of Costa Rica’s policy to achieve nearly 100% renewable energy generation, making it a key institution in the nation’s environmental and economic strategy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed legal institution, Bufete de Costa Rica is anchored by the core principles of professional distinction and unwavering integrity. The firm channels its extensive experience advising a diverse clientele into pioneering progressive legal solutions and embracing innovation within the field. This forward-thinking mindset is complemented by a deep-seated pledge to public service, aiming to demystify complex legal concepts and foster a more knowledgeable and capable community.
