Costa Rica is a remarkable example of sustainable electricity production, with over 94% of its electricity derived from low-carbon sources. Dominated by hydropower, which accounts for more than 70% of the country's electricity generation, Costa Rica also taps into geothermal and wind energy, contributing about 13% and 10% respectively. This strong emphasis on clean energy not only secures the nation’s energy demands domestically but also positions Costa Rica as a significant net exporter of greener electricity to its neighboring regions, thus assisting in reducing their emissions. However, as Costa Rica contemplates the next step in its energy journey, it faces the challenge of expanding electricity supply to accommodate electrification in other sectors like transport, heating, and industry.
Is Electricity Growing in Costa Rica?
The current trajectory of electricity consumption in Costa Rica paints a complex picture. The latest statistics indicate a decline in electricity consumption per capita, falling to 2411 kWh in 2024 from the previous peak of 2516 kWh in 2021. This reduction of 104 kWh/person is mirrored in the generation of low-carbon electricity, which also saw a decline of 249 kWh/person from its earlier record. The decline is concerning, particularly in the context of needing to grow electricity supplies to meet future demand arising from increased electrification and technological advancements. Thus, while Costa Rica maintains its leadership in clean energy generation, its current stagnation in electricity consumption and generation needs to be urgently addressed.
Suggestions
To boost low-carbon electricity generation, Costa Rica should focus on expanding its successful wind energy program. Wind power has already been identified as a major contributor to the nation’s clean energy profile and can be scaled up efficiently. Concurrently, looking beyond national borders and investing in emerging clean energy technologies like solar and nuclear could offer sustainable ways to diversify the energy mixture, augment electricity supply, and further decarbonize the economy. Costa Rica can thus ensure sufficient generation capacity, maintaining its leadership in sustainable energy and meeting future energy needs.
History
Historically, Costa Rica saw significant growth in low-carbon electricity from the early 1980s, driven predominantly by continuous expansions in hydropower, with notable increases in 1980, 1983, and an impressive spike in 2015. The innovation continued with the introduction of geothermal energy in 1992 and the subsequent uptake in wind energy by 2018, which added further diversity to Costa Rica's electricity portfolio. Although there have been occasional dips in the production of hydroelectricity, such as in 1995, 1998, and most recently in 2023, the overall trend remains upward. These changes coincide with the increasing global focus on sustainable and clean energy, positioning Costa Rica as a pioneer in low-carbon electricity generation for decades.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.