Due to changes in people's habits, energy consumption in commercial establishments, offices and industrial complexes has decreased, contrasting with the rise in demand in residential areas.
The quarantines and restrictions on mobility that Central America has experienced due to the covid-19 outbreak and the latent risk of contagion, has caused radical changes in the region's electricity market.
With 19% endemic poverty, 10% open unemployment and 40% informal employment, and some of the highest electricity rates in the region, Costa Rica is opposed to $1 billion in clean energy investments.
EDITORIAL
By Jorge Cobas González
Meanwhile, the bureaucracy of state-owned companies continues to prescribe first-world remuneration, and continues to protect its privileges following ECLAC development concepts from the middle of the last century, which are utterly out of place today.Because Costa Rica does not have the investment capacity or know-how necessary for the development of latest generation renewable energy projects, even though it has all of the necessary primary conditions: sun, wind, thermal energy.
Insurance coverage, tax incentives and drilling costs shared between private businesses and governments are some of the proposals put forward for exploiting geothermal potential in Central America.
A global study by the World Bank analyzes the reasons why it has not been possible to take full advantage of geothermal energy in Latin America, highlighting countries such as Costa Rica, Nicaragua, Argentina and Chile, whose potential to generate energy through this renewable source has still not been fully exploited, mainly because of the high risks involved in geothermal projects in their early stages.
In Costa Rica, 19 projects were selected as "eligible" by the state run power company, but the same institution has ruled out opening new competitions to purchase more wind-generated power.
EDITORIAL
Investment in alternative energy is risky, because it depends on uncontrollable external factors such as unpredictable weather variations, which have particular effects on hydraulics, solar and wind power.
In Costa Rica a 650 MW hydropower project in which $129 million has already been invested, has made no progress in 20 years, pending an "intercultural dialogue" which has not even begun.
EDITORIAL
The problem is not that infrastructure is to be built in indigenous territories without dialogue . Nor it is that the dialogue is fruitless. A conflict has not even arisen.
The Instituto Costarricense de Electricidad is inviting bids for the design and construction of substation Tejar, the substation Higuito and associated transmission lines.
Costa Rica Government Purchase 2015LI-000003-PROV:
"RECRUITMENT OF DESIGN AND CONSTRUCTION OF THE SUBSTATION TEJAR (EXTENSION NO 1) SUBSTATION HIGUITO ASSOCIATED TRANSMISSION LINES".
In 2013 63% of the electrical energy fed into the transmission networks in the region was generated from renewable sources.
From a report entitled "Central America: production statistics for the electricity subsector, 2013", prepared by the Economic Commission for Latin America and the Caribbean (ECLAC):
"... The production of electricity in the six countries amounted to 45,735 GWh, 3.3% higher than in 2012.
Solutions have been found to the problems of easement and complaints from environmentalists, and the Electrical Interconnection System for Central America will be complete in its entirety in July.
The works on the last stretch of 32 km of the Electric Interconnection System for Central America (SIEPAC) in Costa Rica are 80% finished, after having suffered delays due to complaints about environmental damage and legal claims.
In Costa Rica the high electricity rates are driving out foreign investment while indigenous opposition impedes progress of the construction of a 650 MW hydroelectric power plant.
It is time that the region starts to balance conservation policies with the needs of development so as to allow an escape from poverty for those who are currently held down by it and who at the same time are holding the rest of society hostage.
GTherm, the owner of the patent, is negotiating with Instituto Costarricense de Electricidad (ICE) to develop a 12 MW pilot project.
Within ICE's strategy to develop clean electricity sources, since October 2010 it is negotiating a pilot project to generate electricity by harnessing geothermal energy in the subsoil, a rich resource in Costa Rica.
Costa Rica spent in 2010 $ 164 million in oil to generate electricity, while it wastes 1,000 MW of geothermal potential.
According to current legal framework and planning, the Instituto Costarricense de Electricidad expects to generate 4,018 megawatts by the year 2016, of which only 35 MW will come from geothermal sources; it represents only 2% of the total.
In 2015 Central America will sell $2 billion in paid television and broadband services, both wireless and cable.
A report from consulting company Signals Telecom foresees a battle in broadband services, as the average speeds offered in Central America are below South American and Caribbean averages.
They also expect competition to cause improvements in 3G coverage, and the introduction of more added value services.
The infrastructure required for a regional electric interconnection system would be ready in 2010, reported CABEI.
Called SIEPAC, this project comprises building a 230 kW electric line spanning 1.790 kilometers. So far, $451 million have been invested in it.
“It is being funded by the Central American Bank for Economic Integration, the Inter American Development bank and other entities”, reported Informador.com.mx.
Costa Rica’s difficulties in expropriating terrains will delay the construction of 70km of electric lines.
The countries members of Siepac, the Central American Electric Interconnection System, expect to conclude their respective stretches of the line in September 2010, while Costa Rica would deliver it on October 2011.
Nacion.com reports that the rest of the countries are unhappy with this, and want the network to be operating as soon as possible, to improve energy supply and commercialization.