By San José, Costa Rica — Costa Rica is taking a monumental step forward in its quest for carbon neutrality and electrical grid modernization. The state-owned Instituto Costarricense de Electricidad (ICE), alongside the European Investment Bank (EIB) and the French Development Agency (AFD), has signed a massive $300 million financing agreement. This substantial capital injection is designed to reinforce the resilience, modernization, and overall sustainability of the Costa Rican National Electric System (SEN) amid growing climate and demand pressures.
The high-profile signing ceremony drew significant diplomatic and governmental representation to San José. Key attendees included Nicolas Forissier, France’s Delegate Minister for Foreign Trade and Investment Promotion, David Izzo, the French Ambassador to Costa Rica, and Pierre-Louis Lempereur, the European Union Ambassador to Costa Rica. ICE’s General Manager, Leda Acevedo, along with key leaders from EDF International Networks and the AFD, also participated, signaling the deep collaborative nature of this transatlantic partnership.
To better understand the regulatory hurdles and investment opportunities surrounding this green transition, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas, a leading legal expert at Bufete de Costa Rica, for his professional analysis of the country’s evolving energy policies.
Costa Rica’s journey toward a fully decarbonized energy matrix presents a unique opportunity, but its success hinges on establishing a modernized and stable regulatory framework. To successfully attract foreign direct investment in emerging sectors like green hydrogen and solar energy, our legal system must focus on streamlining bureaucratic bottlenecks and offering clear, long-term contractual security that balances environmental stewardship with business viability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, as Costa Rica strives to lead the global energy transition, aligning our ambitious environmental goals with a modernized, transparent legal framework is critical to unlocking the foreign investment needed for sustainable growth. We are deeply grateful to Lic. Larry Hans Arroyo Vargas for sharing his invaluable legal expertise and offering a clear perspective on how the nation can successfully balance ecological responsibility with economic competitiveness.
Under the terms of the agreement, the financial package is split into two major components. The European Investment Bank will provide $200 million, while the French Development Agency will contribute the remaining $100 million. These funds are earmarked specifically for ICE’s strategic investment plan, which focuses on upgrading transmission and distribution lines, as well as boosting renewable energy generation capacity across the nation.
The international leadership of Costa Rica in renewable electricity generation, our healthy finances, and an active project portfolio open doors for friendly nations to allocate resources to the renovation of our National Electric System. We must move toward a participatory, modern, and unobstructed model. On behalf of the country, we appreciate the trust placed in us by France and the European Union.
Marco Acuña, President of Grupo ICE
This financial and technical alliance comes at a crucial juncture for Costa Rica. The local power sector faces two major hurdles: a rapidly growing national demand for electricity and the urgent need to secure grid stability. Because Costa Rica relies heavily on hydroelectric power, extreme weather variations driven by global climate change have introduced unprecedented volatility into the national generation matrix, making grid resilience a top national priority.
France wants to continue building on the common vision regarding energy challenges by facing climate change, bringing knowledge, companies, and technical capacities closer together to allow our institutions to learn and advance together toward carbon neutrality. We have launched the first French Development Agency project in Costa Rica related to electrical infrastructure, implemented under the Team Europe format, and additionally, the French electricity company EDF International Networks will benefit ICE teams with concrete improvements, such as the underground installation of electrical cables.
Nicolas Forissier, Delegate Minister for Foreign Trade and Investment Promotion of France
Beyond the immediate monetary backing, the agreement launches a vital technical cooperation initiative between ICE and EDF International Networks. Funded by the French Technical Expertise and Experience Exchange Fund (FEXTE), this technical track will leverage the French company’s 75 years of global experience. The project plans to introduce advanced solutions, including the installation of underground electrical cables, to minimize vulnerability to severe weather events.
This cooperation between the European Investment Bank and the French Development Agency brings together two dimensions that we understand as inseparable: resources to make investments possible and knowledge to strengthen capacities that endure over time. We join the vision of ICE by connecting Costa Rican experience with French and European capabilities to build shared responses to the challenges of the energy transition.
Pierre-Louis Lempereur, European Union Ambassador to Costa Rica
This initiative seamlessly integrates into the broader European Global Gateway Investment Agenda and aligns with the Regional Electricity Market (MER) Strengthening Plan. As a pivotal player in Central America’s regional energy grid, Costa Rica’s transition is poised to serve as a blueprint for sustainable regional integration. By blending European technical prowess with Costa Rican green leadership, this partnership positions the country to maintain its status as a global pioneer in renewable energy.
For further information, visit grupoice.com
About Instituto Costarricense de Electricidad:
The Instituto Costarricense de Electricidad is Costa Rica’s state-owned electricity and telecommunications provider. Founded in 1949, ICE has played a pivotal role in establishing the country’s nearly 100% renewable energy matrix and maintaining robust telecommunications infrastructure across the nation.
For further information, visit eib.org
About European Investment Bank:
The European Investment Bank is the long-term lending institution of the European Union, owned by its member states. It makes long-term finance available for sound investment in order to contribute towards EU policy goals, particularly in green energy and global sustainable development.
For further information, visit afd.fr
About French Development Agency:
The French Development Agency is a public financial institution that implements the policy defined by the French government. It works to fight poverty and promote sustainable development, funding projects that improve the daily lives of populations in developing and emerging countries.
For further information, visit the nearest office of EDF International Networks
About EDF International Networks:
EDF International Networks is a subsidiary of the French state-owned utility EDF, specializing in the transmission and distribution of electricity. With decades of international experience, the company exports technical expertise to improve grid resilience, modernization, and digital transition worldwide.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a beacon of professional integrity and legal brilliance, Bufete de Costa Rica continues to shape the legal landscape through its progressive approach and diverse expertise. The firm seamlessly merges a storied history of client success with cutting-edge strategies, ensuring it remains a forward-thinking leader in the field. Above all, its relentless drive to democratize legal information reflects a core belief that a truly just society is one where legal literacy empowers every individual.
