Public consultation is being carried out on the methodology for calculating tariffs for power generation from solid waste.
The drop in oil prices and high operating costs are not the only obstacles to projects generating energy from waste in Costa Rica. Now the Regulatory Authority of Public Services is calling for a public hearing in order to "start writing" a methodology, ordinary and extraordinary, that will determine the reference rates for power plants using municipal solid waste.
In Costa Rica operators in the sector indicate that there are no incentives for renewable energy generation due to excessive interconnection and access fees.
The tariff structure and rates established by the Regulatory Authority for Public Services (Aresep) caused widespread discontent for entrepreneurs with interests in solar power generation.
An article on Nacion.com explains that generators argue that the access fee is too high, and it should not even be charged at the start of the implementation of this technology, as it represents an obstacle to promotion of the activity.
Legal jargon on public corporations is preventing twelve companies from choosing the energy supplier that offers the best prices.
Bridgestone, Grupo Mit, Irex, Amanco and Cervecería Costa Rica and seven more companies saw their request to change electricity supplier hampered when the Regulatory Authority for Public Services (ARESEP) granted the municipality the authority to resolve the matter, which then rejected the request by the companies.
While state power company ICE produced energy in March with a maximum marginal cost of $468 MW / h, in the regional market it was on sale for $218.
In March Costa Rica increased its energy imports, since the price in the regional electricity market was almost half that of the cost incurred by the Instituto Costarricense de Electricidad to generate power using thermal power plants.
The tariffs for electricity generated with solar power or biomass will be determined using the same methodology used for setting prices for the sale of hydropower.
The measure approved by the Regulatory Authority of Public Services (ARESEP) and applied to production of less than 20 megawatts, aims to foster the participation of a greater number of companies dedicated to the production of energy from renewable sources such as water, solid waste and other things.
The industrial sector in Costa Rica, a key factor in the creation of wealth outside the metropolitan area in the country, is asking for presidential candidates to focus on the issues that define the competitiveness of the national economy.
The main issues affecting the competitiveness of the real productive sectors of Costa Rica are:
- Very high electricity rates, because of "abuses and inefficiencies of utility operators."
The union for the sector is calling on the next government to review the management of the Instituto Costarricense de Electricidad and the creation of an Industrial Policy.
From a press release from the Chamber of Industries of Costa Rica (ICRC):
During its annual review and expectations for 2014, the Chamber of Industries of Costa Rica, ICRC said that this year the sector maintained behavior marked by ups and downs, which began with a clear recessionary trend, which was then reversed from April.
The Public Utilities Regulatory Authority has authorized energy companies who operate in the same area, to compete with each other for new customers.
The Board of the Public Utilities Regulatory Authority (ARESEP) "... put an end to a conflict between Empresa de Servicios Públicos de Heredia (ESPH) and Compañía Nacional de Fuerza y Luz (CNFL) over the development of the real estate project Centro Corporativo Belén" , reported Nacion.com.
Industrialists are starting to look at transferring their plants to countries where energy costs are lower.
The high cost of electricity bills has caused some industries to look at moving their operations out of the country in the search for savings and competitiveness.
Corporación Yanber, a manufacturer of packaging for trade, industry and agriculture, decided to go to Nicaragua eight months ago, and other companies are evaluating the possibility of moving their operations to countries where the energy sector impinges less on the cost of their products.
The implementation of the regulations to harmonize the national and regional electricity markets is still pending.
Last May saw the publication of the Regulation on Regulatory Harmonization between the National Electricity Market and the Central American Electricity Market (MEN and MER, respectively). This established that the Instituto Costarricense de Electricidad (ICE) would communicate the decision which would be taken regarding the assignment of the system operator and market operator to the Regulatory Authority for Public Services (Aresep), 30 days after publication.
Overwhelmed by the growing impact of energy costs, large electricity consumers in Costa Rica are asking for a reduction in their electricity rates of between 10.7% and 38.6%.
From a press release by the Regulatory Authority for Public Services (Aresep):
The Costa Rican Association of Large Energy Consumers (ACOGRACE) has requested a rebate for electricity rates in the business sector.
The state run electricity company has requested an increase of 5.56%; business are against it, as it heavily impacts industry costs.
There is a procedure requested by the Chamber of Industries of Costa Rica to reduce rates by 11% for all power distribution companies, among which is the state run entity.
The request by the Instituto Costarricense de Electricidad (ICE) to the Regulatory Authority for Public Services (Aresep) was justified with the argument "... that money will be used to meet costs and operating expenses, debt service and generate the resources aimed at creating an investment plan," reported Nacion.com.
Both the Costa Rican Union of Chambers and the Presidency have said that Congress should fasttrack the approval of the Electricity Contingency Act.
According to the Minister of the Presidency, Carlos Ricardo Benavides, this project is a priority of the Government and it is hoped that it will be adopted before the end of the year, despite its opposition by various sectors.
Business associations say the country needs a comprehensive law that allows greater participation and competitiveness of private generators.
The Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP) predicts sharp increases in electricity rates, and points to inefficiency in the management of the Instituto Costarricense de Electricidad (ICE), as the monopoly responsible for satisfying the country's demand for electricity.
The Costa Rican government has agreed to resume discussion on the Contingency Power Project, which allows for greater private sector participation in power generation.
The Minister of Environment and Energy, René Castro, said that the initiative which since last August has been in the Legislative Assembly will be convened in an extraordinary session that starts on December first.