Costa Rica Achieves 98% Renewable Energy Production
A report highlights Costa Rica's significant advancements in renewable energy, foreign investment, and regional influence in Latin America.
Costa Rica has achieved a landmark status as a leader in renewable energy within Latin America, with 98% of its electricity generated from clean sources over the past five years, according to the CAF’s Economy and Development Report (RED) 2024. This development underscores the country’s commitment to sustainable practices and its role in shaping the region's energy landscape.
The high rate of residential electrification in Costa Rica stands at 70%, with households increasingly utilizing electricity for cooking and heating.
This shift towards cleaner energy is not only an environmental initiative but is also contributing to economic growth.
In 2023, foreign direct investment surged by 24%, facilitating the establishment of 59 multinational projects slated for 2023 and 2024.
Sergio Diaz-Granados, Executive President of CAF, stated, "For the first time, we can decouple economic growth from emissions," reflecting the impact of renewable energy on Costa Rica's economy.
Evidence of this decoupling is apparent in the export sector, where coffee and cocoa exports have seen increases of 16% and 20% respectively in 2024, driven by global demand for sustainable products.
Beyond domestic developments, Costa Rica is expanding its influence regionally through the SIEPAC interconnection system, which enables the export of surplus renewable energy to neighboring countries.
The establishment of over 50 electric vehicle (EV) charging stations across key trade routes further reinforces its position as a green energy leader.
The nation is also making strides in industrial sustainability, with cement plants exploring carbon-capture technologies.
Procomer, Costa Rica's trade promotion agency, has invested $40 million to support startups focused on green hydrogen and AI technologies for optimizing energy grids.
While Costa Rica sets an example for renewable energy in the region, the RED 2024 report indicates that Latin America must increase its renewable energy capacity by 3.5 times by the year 2040 to fulfill international climate obligations.
Lessons from Costa Rica's experience highlight the importance of public-private partnerships, bioindustrial innovation, and the promotion of eco-tourism in addressing these challenges.
Adriana Acosta, Director of esencial COSTA RICA, remarked, "Sustainability isn’t a cost—it’s our competitive edge,” while Environment Minister Franz Tattenbach added, "Every kilowatt we export strengthens democracy."
As Costa Rica continues to pave the way for renewable energy across Latin America, the RED 2024 report projects a future that is intrinsically linked to sustainable practices, emphasizing the significant role of the country in progressing towards a more environmentally responsible region.
The high rate of residential electrification in Costa Rica stands at 70%, with households increasingly utilizing electricity for cooking and heating.
This shift towards cleaner energy is not only an environmental initiative but is also contributing to economic growth.
In 2023, foreign direct investment surged by 24%, facilitating the establishment of 59 multinational projects slated for 2023 and 2024.
Sergio Diaz-Granados, Executive President of CAF, stated, "For the first time, we can decouple economic growth from emissions," reflecting the impact of renewable energy on Costa Rica's economy.
Evidence of this decoupling is apparent in the export sector, where coffee and cocoa exports have seen increases of 16% and 20% respectively in 2024, driven by global demand for sustainable products.
Beyond domestic developments, Costa Rica is expanding its influence regionally through the SIEPAC interconnection system, which enables the export of surplus renewable energy to neighboring countries.
The establishment of over 50 electric vehicle (EV) charging stations across key trade routes further reinforces its position as a green energy leader.
The nation is also making strides in industrial sustainability, with cement plants exploring carbon-capture technologies.
Procomer, Costa Rica's trade promotion agency, has invested $40 million to support startups focused on green hydrogen and AI technologies for optimizing energy grids.
While Costa Rica sets an example for renewable energy in the region, the RED 2024 report indicates that Latin America must increase its renewable energy capacity by 3.5 times by the year 2040 to fulfill international climate obligations.
Lessons from Costa Rica's experience highlight the importance of public-private partnerships, bioindustrial innovation, and the promotion of eco-tourism in addressing these challenges.
Adriana Acosta, Director of esencial COSTA RICA, remarked, "Sustainability isn’t a cost—it’s our competitive edge,” while Environment Minister Franz Tattenbach added, "Every kilowatt we export strengthens democracy."
As Costa Rica continues to pave the way for renewable energy across Latin America, the RED 2024 report projects a future that is intrinsically linked to sustainable practices, emphasizing the significant role of the country in progressing towards a more environmentally responsible region.
