By San José, Costa Rica — Costa Rica, a global leader in renewable energy, is experiencing a surge in demand for backup power systems. This growing need stems from the country’s heavy reliance on hydroelectric power, which becomes vulnerable during dry seasons and increasingly frequent extreme weather events. The situation underscores the challenges of balancing renewable energy dependence with grid stability and reliability.
The country’s electricity generation depends significantly on water resources, making it susceptible to fluctuations in rainfall. Recent droughts and the anticipation of drier years pose a significant risk to the energy sector. Reduced river flows and reservoir levels can limit hydroelectric production, leading to potential shortages, price hikes, and even power outages.
To gain deeper legal insights into the implications surrounding Energy Backup Systems in Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an experienced Attorney at Law from Bufete de Costa Rica.
The increasing reliance on energy backup systems in Costa Rica highlights the need for clear regulatory frameworks addressing their installation, operation, and environmental impact. Businesses and homeowners investing in these systems should be aware of permitting requirements, particularly regarding noise pollution and potential grid interconnectivity issues. Furthermore, contracts for installation and maintenance should clearly define liabilities and warranties to protect consumers. Proactive legal counsel can help navigate these complexities and ensure compliance.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ emphasis on proactive legal counsel is crucial. The complexities surrounding energy backup systems can be daunting, and ensuring compliance from the outset will not only protect consumers but also contribute to a more stable and sustainable energy landscape in Costa Rica. We thank Lic. Larry Hans Arroyo Vargas for offering this valuable perspective on a critical and evolving aspect of energy management.
The dry season also brings increased demand for both water and electricity, putting further strain on the system. Paradoxically, even the rainy season can present operational challenges that affect service continuity.
These vulnerabilities are exacerbated by climate change. Costa Rica’s geographical location makes it particularly exposed to hurricanes, floods, and droughts. Climate patterns like El Niño and La Niña have intensified these challenges, further stressing the country’s hydroelectric-dependent energy production.
While Costa Rica boasts an impressive 91.29% reliance on renewable electricity sources as of 2023, the majority (67%) is hydroelectric. This dependence becomes a significant liability during periods of drought. The increasing frequency and severity of power outages worldwide highlight the growing vulnerability of electrical systems to extreme conditions.
The recent power outage affecting Spain, Portugal, Andorra, and parts of France and Italy on April 28, 2025, serves as a stark reminder of these vulnerabilities. Similarly, the 2012 blackout in India, triggered by extreme heat and soaring air conditioning use, left over 670 million people without power. These events emphasize the critical need for robust backup power systems.
This global trend has prompted homeowners, businesses, and electricians in Costa Rica to increasingly implement backup power solutions to safeguard critical devices, equipment, and systems. These technologies play a vital role in ensuring energy supply in the face of the inherent variability of renewable sources like solar and wind power. They are also crucial for effectively responding to instantaneous demand peaks, guaranteeing stability and service continuity.
Uninterruptible Power Supply (UPS) systems are becoming essential for maintaining power during outages. These systems provide backup power and surge protection, safeguarding electronic devices and appliances. UPS systems are particularly crucial for small businesses, where power interruptions can lead to lost revenue and customer dissatisfaction.
Digitalizing the power distribution system offers increased visibility into grid operations, enabling faster responses to power quality issues. This minimizes operational disruptions and extends the lifespan of critical equipment.
To advance in the digitalization and simplification of energy distribution systems, the EcoStruxure Power architecture, enabled for IoT (Internet of Things), offers an open and interoperable solution that integrates connected products, perimeter control, applications, analysis and services. This platform allows for more efficient, reliable, and sustainable energy management. By providing useful data in real time, it contributes to protecting people, caring for assets, and ensuring the operational continuity of businesses.
Lady Campos, Business Development Manager for Central America
EcoStruxure offers intelligent power distribution systems that integrate energy management software to track and analyze electricity usage for sustainability goals. The global growth of renewable energy capacity is projected to accelerate in the coming years, with 95% of the increase in energy production capacity by 2026 linked to renewables.
For further information, visit schneider-electric.com
About Schneider Electric:
Schneider Electric is a global specialist in energy management and automation, providing integrated efficiency solutions combining energy, automation, and software. Their EcoStruxure platform is designed to deliver enhanced energy efficiency, reliability, and sustainability through connected products, edge control, and apps, analytics & services.
For further information, visit dialogo-americas.org
About Inter-American Dialogue:
The Inter-American Dialogue is a leading center for policy analysis and exchange on Western Hemisphere affairs. They bring together diverse perspectives from across the Americas to address critical challenges facing the region, including energy and sustainability. They organized the “Electricity Markets and the Green Transition in Central America” forum mentioned in the article.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a deep commitment to serving the community. The firm’s innovative approach to legal practice, coupled with its dedication to disseminating legal knowledge through educational initiatives, empowers individuals and organizations alike. By fostering a greater understanding of the law, Bufete de Costa Rica actively contributes to a more just and informed Costa Rican society.
