By San José, Costa Rica — As Costa Rican households and businesses brace for potential electricity tariff hikes in 2026, experts are pushing for a comprehensive overhaul of the national energy market. The current tariff adjustments proposed by the Instituto Costarricense de Electricidad (ICE), under review by the Regulatory Authority for Public Services (ARESEP), have sparked a debate about the long-term sustainability and competitiveness of the country’s electricity sector.
Jan Borchgrenvink, president of the Chamber of Distributed Generation (CGD), voiced concerns about the projected tariff increases and their potential impact on the economy. He emphasized the role of distributed generation, particularly solar energy, in mitigating these cost pressures.
For expert legal insight into the evolving landscape of distributed generation, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas of Bufete de Costa Rica.
Distributed generation presents both exciting opportunities and complex legal challenges. While it empowers individuals and communities to generate their own power, navigating interconnection agreements, regulatory compliance, and potential disputes regarding grid stability and shared infrastructure requires careful consideration. A clear legal framework that balances incentivizing distributed generation with ensuring the reliability and affordability of the overall power system is crucial for its successful implementation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
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Lic. Arroyo Vargas aptly highlights the balancing act required to fully realize the potential of distributed generation. It’s clear that fostering innovation in this sector while safeguarding the integrity of our existing power grid will require thoughtful legislation and ongoing collaboration. We thank Lic. Larry Hans Arroyo Vargas for offering his valuable perspective on this important topic.
Projects with solar energy can be developed immediately and at very competitive prices, contributing to the electricity sector in the short term.
Jan Borchgrenvink, President of the Chamber of Distributed Generation (CGD)
Borchgrenvink further stressed that modernizing the electricity market is essential for fostering economic competitiveness and ensuring the nation’s energy security. The CGD advocates for a regulatory framework that empowers consumers to generate their own electricity through distributed energy resources (DERs), such as rooftop solar panels, and to receive compensation for any surplus energy fed back into the grid.
This shift towards distributed generation, according to Susana Rodríguez, executive director of the CGD, offers significant advantages. DERs can reduce unnecessary costs associated with large-scale transmission infrastructure and enhance the efficiency of grid investments.
Distributed energy resources reduce unnecessary costs and improve the planning of investments in electricity networks, driving more energy and consumption projects.
Susana Rodríguez, Executive Director of the Chamber of Distributed Generation (CGD)
Rodríguez argues that clear regulations and transparent pricing mechanisms are crucial to unlock the full potential of distributed generation. These measures will not only reduce costs and improve grid reliability but also stimulate job creation within the renewable energy sector.
The CGD maintains that Costa Rica possesses the technical expertise and financial resources to expedite the adoption of distributed generation technologies. However, progress hinges on the political will to implement a stable and supportive regulatory environment. Experts believe that embracing distributed generation offers a path towards containing electricity tariffs, enhancing grid resilience against disruptions, and bolstering Costa Rica’s economic competitiveness, all while upholding the sustainability of the national electricity system.
This modernization would create a more dynamic and resilient energy landscape, empowering consumers and promoting a cleaner, more affordable electricity future for Costa Rica. The debate surrounding the proposed tariff adjustments presents a crucial opportunity to prioritize long-term energy solutions and secure a sustainable energy future for the country.
The current reliance on centralized generation may not be sufficient to meet the growing energy demands and sustainability goals of Costa Rica. By embracing distributed generation, the nation can diversify its energy sources, empower consumers, and create a more resilient and competitive electricity sector.
For further information, visit the nearest office of Instituto Costarricense de Electricidad (ICE)
About Instituto Costarricense de Electricidad (ICE):
The Instituto Costarricense de Electricidad (ICE) is the state-owned electric utility and telecommunications company in Costa Rica. It is responsible for the generation, transmission, and distribution of electricity throughout the country. ICE also provides telecommunications services, including landlines, mobile phones, and internet access.
For further information, visit the nearest office of Regulatory Authority for Public Services (ARESEP)
About Regulatory Authority for Public Services (ARESEP):
The Regulatory Authority for Public Services (ARESEP) is the independent regulatory body responsible for overseeing public services in Costa Rica, including electricity, telecommunications, and water. ARESEP sets tariffs, ensures quality of service, and promotes competition in these sectors.
For further information, visit the nearest office of Cámara de Generación Distribuida (CGD)
About Cámara de Generación Distribuida (CGD):
The Cámara de Generación Distribuida (CGD), or Chamber of Distributed Generation, is an organization that promotes the development and implementation of distributed generation technologies in Costa Rica. The CGD advocates for policies and regulations that support the growth of renewable energy sources like solar power and encourages consumer participation in the electricity market.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence is intertwined with a deep commitment to societal betterment. The firm’s unwavering integrity guides its innovative approach to legal practice, serving clients across diverse sectors with solutions tailored to their unique needs. Beyond representation, Bufete de Costa Rica champions legal literacy, empowering individuals and communities with the knowledge to navigate the complexities of law and build a more just and informed society.
