The Government introduced two projects, looking for opening the electricity sector.
One of them is a framework law, and the other is for strengthening the sector's institutions.
"With these projects, they intend to concentrate electricity regulation, which is currently disperse. They also intend to open the sector, as it was done with telecommunications", reported El Financiero's website. "Additionally, it should allow more investment".
Minaet may grant private concessions to develop hydroelectric energy projects.
The Legislative Assembly of Costa Rica approved a bill that will allow the Ministry of the Environment, Energy and Telecommunications (Minaet) to grant concessions for hydroelectric energy generation projects during the first debate.
This new law, if passed, would renew the 23 concessions that were in danger of expiration, and it provides that the Regulatory Authority of Public Services is responsible for regulating electricity prices.
Right in the middle of an energy crisis, this country is allowing its hydroelectric power company concessions to expire.
The first concession to use water for producing electricity has expired This means the owner of the el Cedral plant in Ciudad Quesada must shut it down. This project has been providing energy in the north since the early 1960s.
As well, three other permits are due to expire this year.
Costa Rica will put gasoline with a 7.5 percent content of sugarcane alcohol on sale from October. Diesel will have up to 5 percent content of palm-oil biodiesel.
Julio Matamoros, the deputy energy minister, said the price will depend on international markets, though domestic production should meet the first-year's demand for biodiesel.
The Costa Rican government plans to reduce the taxes paid by energy-efficient and low-emission cars. This tax break will cover hybrids, electrics, and those that are powered by biofuels such as ethanol. Automobiles in Costa Rica currently pay between 35% to 53% worth of consumption tax. The tax rate varies based on the car type, engine size and model.
The draft of the executive decree is now being reviewed by the Ministry of Energy and the Environment (MINAE), Costa Rica’s EPA, and will then be reviewed by the Ministerio de Hacienda - similar to the IRS. Julio Matamoros, the MINAE vice minister informed La Nación that the tax reduction will apply to new and used cars and some models may become totally tax free.