Costa Rica is introducing a price band for utility-scale solar projects under the 2024 distributed generation plan to promote renewable energy. This plan, developed by the national energy authority ARESEP, aims to guide the Costa Rican Electricity Institute (ICE) in buying electricity from solar and wind projects. For those interested in the latest developments in Costa Rica’s solar sector, PVknowhow’s Costa Rica Solar News offers extensive coverage and updates.
Introduction of Price Band for Costa Rica Solar Projects
The plan proposes a price band of $0.075 to $0.085 per kilowatt-hour (kWh) for solar projects. This price band will be the basis for ICE to set the reference price for purchasing electricity from independent solar power producers. ICE will also set an additional price for wind projects. The plan will be in effect from January 1 to December 31, 2024. More insights into Costa Rica’s solar energy developments are available through Ventus Secures 40 Million for Solar project Costa Rica Development.
ARESEP’s Role in Costa Rica Solar Projects
ARESEP has been tasked with creating energy purchase plans for distributed generation. The regulator is expected to conduct two annual auctions to ensure the energy system’s reliability. Independent power producers will be able to sell surplus energy to ICE, which will buy it at the specified reference prices.
The energy produced and purchased through this plan will be distributed to end users throughout Costa Rica. The distributed generation plan emphasizes the importance of diversifying the country’s energy mix and increasing the share of renewable energy in the national grid.
Distributed Generation and Costa Rica Solar Projects
Costa Rica has a growing distributed generation market. By the end of 2023, the country had 1,098 distributed generation systems, with a total installed capacity of 70.5 MW. Solar accounted for 97% of this capacity, followed by small-scale hydro and wind projects, each contributing 2%.
In 2023, 1,023 new distributed generation systems were added, increasing the total installed capacity by 47% compared to 2022. These new systems were installed by 1,091 consumers, contributing 22.4 MW to the national power system. Solar energy accounted for 21.9 MW of the total capacity added in 2023.
Despite the growth in distributed generation, Costa Rica still has significant potential for expansion. A recent study by the International Renewable Energy Agency (IRENA) and the Economic Commission for Latin America and the Caribbean (ECLAC) identified 52,000 sites suitable for rooftop solar PV installations across the country. These sites could provide up to 1 GW of solar power capacity, with 78% of them located in the residential sector.
For a deeper understanding of the challenges and opportunities in Costa Rica’s solar energy landscape, the Costa Rica solar energy Challenges and Opportunities article is a must-read.
The Future of Distributed Generation and Costa Rica Solar Projects
The introduction of the price band for utility-scale solar projects is part of Costa Rica’s broader strategy to increase renewable energy in the country’s energy mix. The distributed generation plan is expected to encourage more investments in solar and wind energy projects, contributing to the country’s energy transition goals.
The distributed generation plan is also expected to create new opportunities for independent power producers and consumers interested in generating their electricity. By selling surplus energy to ICE, these producers can contribute to the national grid and help meet the country’s growing energy demand.
Costa Rica’s commitment to renewable energy is evident in its ambitious distributed generation plan. The introduction of a price band for utility-scale solar projects is a significant step towards achieving the country’s renewable energy targets. With the continued growth of distributed generation, Costa Rica is well on its way to becoming a global leader in renewable energy. For more on Costa Rica’s achievements in clean power, check out Costa Rica renewable energy: 5 Amazing Achievements in Clean Power.
