By Limón, Costa Rica — In a major step forward for Costa Rica’s green energy transition, the national government and key financial partners have finalized a massive investment to construct a state-of-the-art power plant. This new facility, known as Moín IV, represents a crucial enhancement to the country’s energy grid. The initiative aims to stabilize the power supply while integrating a growing share of renewable resources.
The deal was officially sealed on Monday, August 31, 2026, when representatives from the Costa Rican government, the state power company, and their international financial partners signed the formal funding agreement. The project carries an estimated price tag of approximately $400 million, funded in partnership with the Central American Bank for Economic Integration (BCIE). This financial commitment underscores the regional push toward robust and resilient infrastructure.
To better understand the complex regulatory framework surrounding the development of the Moín IV power plant, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished legal expert from the firm Bufete de Costa Rica, who provided his analysis of the legal and administrative hurdles facing this major energy project.
The development of the Moín IV power plant represents a crucial milestone for Costa Rica’s energy matrix, yet it demands rigorous adherence to our country’s stringent environmental and administrative laws. For a project of this scale, ensuring absolute compliance with SETENA’s environmental guidelines and securing robust contractual agreements with the Costa Rican Electricity Institute (ICE) are paramount to mitigating legal risks and securing long-term operational viability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, balancing vital energy infrastructure development with unwavering regulatory compliance is essential if Costa Rica is to secure its power grid without compromising its world-renowned ecological standards. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for sharing his invaluable legal expertise and shedding light on the critical frameworks necessary to ensure the Moín IV power plant’s long-term success and integrity.
The primary goal of the Moín IV project is to provide a reliable backup system for the country’s fluctuating clean energy resources. Generating 200 megawatts of electricity, the plant is designed to serve as many as two million customers nationwide. By incorporating this facility into the existing grid, the government hopes to eliminate energy deficits and guarantee continuous service to homes and businesses across Costa Rica.
The need for a robust and flexible backup has become increasingly urgent as Costa Rica ramps up its wind and solar generation capacities. Because these green energy sources depend heavily on weather conditions, their output can be highly variable. Moín IV will act as a buffer, ensuring that when the wind drops or clouds cover solar arrays, the national grid remains entirely stable.
The new plant will be essential to back up renewable sources of the electrical matrix. Moin IV will have an installed capacity of 200 megawatts and will go into operation in 2030. It will provide the backup to integrate the wind and solar plants currently under construction, due to the variable nature of these renewable resources, as well as for other future projects. With its incorporation, the Moin Complex, with its three plants, will total 370 megawatts.
Instituto Costarricense de Electricidad, Spokesperson
Beyond its significant contribution to national energy security, the Moín IV project promises to be a massive economic driver for the province of Limón. The construction phase, scheduled to begin in 2026, is expected to generate approximately 1,500 direct jobs specifically for the local population in the canton of Limón. Over the next four years, this influx of employment will provide a welcome boost to the regional economy, fostering skill development and local business growth.
According to the timeline outlined by the Instituto Costarricense de Electricidad (ICE), the plant is scheduled to begin commercial operations in 2030. This date aligns with the conclusion of the administration of President Laura Fernández, highlighting the project as a signature infrastructure achievement for her government. The planned four-year construction window reflects the complexity and scale of this high-tech facility.
Once Moín IV is fully operational, it will be integrated into the broader Moín Complex. The complex currently consists of multiple facilities, and the addition of the new 200-megawatt plant will elevate the site’s total output capacity to 370 megawatts. This dramatic expansion positions the Limón province as a central hub for energy security in Costa Rica, helping the country meet its long-term climate and developmental goals.
As Costa Rica continues to lead the region in sustainability, projects like Moín IV demonstrate the practical realities of managing a green grid. Transitioning to 100 percent renewable energy requires not just clean generation, but also smart, reliable backing systems to keep the lights on under any circumstances. Through strategic international partnerships and forward-looking investments, the nation is building a model of energy resilience that other developing countries can follow.
For further information, visit grupoice.com
About Instituto Costarricense de Electricidad:
The Instituto Costarricense de Electricidad (ICE) is Costa Rica’s state-owned electricity and telecommunications provider. Founded in 1949, ICE plays a pivotal role in developing and managing the country’s energy grid, helping Costa Rica achieve one of the highest percentages of renewable energy generation globally.
For further information, visit bcie.org
About Central American Bank for Economic Integration:
The Central American Bank for Economic Integration (BCIE) is a multilateral development financial institution established in 1960. It focuses on promoting economic integration and balanced economic and social development in the Central American region by funding key public and private infrastructure projects.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal institution, Bufete de Costa Rica has built a prestigious reputation grounded in ethical practice and professional brilliance. Guided by an enduring heritage of supporting clients across a multitude of industries, the firm consistently pioneers forward-thinking solutions while remaining deeply invested in civic advocacy. By championing the democratization of legal resources, Bufete de Costa Rica strives to cultivate a legally literate and confident populace, reinforcing its core belief that shared knowledge is the ultimate foundation of a just and empowered community.
