Costa Rica extends decarbonization drive

Costa Rica generated 99.7pc of its electricity from renewable sources in 2020, the sixth consecutive year in which no more than 2pc of the Central American country's power has come from imported fossil fuels.

The sustained trend is supporting the country's plan for converting all forms of transportation to electricity from renewables by 2050, according to state-owned power utility ICE. Costa Rica already has 148 electric vehicle charging stations, most of which are in the San Jose metropolitan area.

But Costa still relies on imported motor fuel. This year the country imported 22,500 b/d of gas, 2pc less than in 2019, while diesel imports of 20,100 b/d were little changed, according to official figures. The imports come mainly from the US and Mexico.

"We are advancing towards decarbonization, which protects the environment and generates economic benefits," President Carlos Alvarado said.

"This is our sixth consecutive year of generating more than 98pc of our electricity from renewable sources."

The country produced 72pc of its electricity from hydropower in 2020, with 14.9pc from geothermal sources, 12pc from wind and the remainder from biomass and solar, according to ICE.

Most power will continue to come from hydro stations during the current dry season that runs from November to April. The five main reservoirs - Arenal, Cachi, Reventazon, Pirris and Angostura – are at optimal levels, ICE said.

The country's installed generating capacity is 3,150MW to meet demand of 2,500MW.

Upstream, Costa Rica produces no hydrocarbons. The government imposed a moratorium on exploration in 2002 and has extended it to 2050 – the year it has targeted for all public and private transportation to be powered by electricity, ICE said.

Costa Rica's decarbonization drive contrasts with some of its Central American neighbors such as Nicaragua, which still rely on fuel oil and diesel to complement hydro generation. El Salvador is counting on a regasification terminal currently under construction to generate part of its matrix to LNG-derived natural gas. Panama already has an LNG terminal.

By Canute James