Renewable Energy and Sustainable Transition in Costa Rica

Costa Rica is globally recognized as a leader in renewable energy and environmental sustainability. The country has achieved one of the highest clean electricity generation rates in the world, supplying more than 98 percent of its power from renewable sources. This achievement reflects decades of consistent policy, public investment, and technological innovation that have shaped a resilient green economy.

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See full overview in Costa Rica Economy.

Energy Matrix and Economic Relevance

Costa Rica’s installed power capacity reached 3.8 gigawatts in 2024. Hydropower accounts for about 65 percent of total generation, while wind, geothermal, and solar provide the remaining share. The state utility, Instituto Costarricense de Electricidad (ICE), plays a central role in planning and managing the national grid.

Energy exports to Central America through the SIEPAC interconnection network are growing steadily, positioning Costa Rica as a regional supplier of clean power. The country’s reliable and low-emission energy system supports key industries, including manufacturing, medical devices, and digital services.

Green Hydrogen and New Technologies

Costa Rica is expanding into next-generation renewable technologies. The National Hydrogen Strategy 2025 aims to develop hydrogen production based on hydropower and solar energy. Pilot projects in Guanacaste and Limón are already testing electrolyzer capacity and export feasibility.

By 2030, hydrogen could supply 10 percent of national transport energy demand. Collaboration with Japan, Germany, and the European Union is helping Costa Rica design regulatory frameworks and attract green technology investment.

Policy, Regulation, and Private Participation

Government commitment to sustainability remains strong. The National Decarbonization Plan 2050 targets complete electrification of transport and industrial operations. Fiscal incentives encourage clean energy investments, while simplified procedures have accelerated renewable project approvals.

Private companies are increasingly active in solar and wind development. Over 350 new distributed generation systems were installed in 2024, expanding access for households and small businesses.

Environmental Impact and Community Benefits

Renewable energy projects in Costa Rica integrate environmental and social safeguards. Hydroelectric and geothermal plants invest in biodiversity protection, reforestation, and local employment. More than 95 percent of energy sector jobs are filled by Costa Rican professionals, reflecting the country’s strong human capital.

Sustainability programs link energy producers with rural development initiatives, strengthening social inclusion and regional balance.

Strategic Outlook 2025–2035

Costa Rica’s energy transition will deepen through innovation, diversification, and regional cooperation. The combination of clean generation, advanced research, and transparent policy ensures long-term competitiveness.

As global demand for low-carbon economies accelerates, Costa Rica remains a benchmark for renewable energy and sustainable transformation in Latin America.