During 2019, 80 environmental impact studies were presented to carry out work on electrical networks and to build energy generation plants in different areas of Central American countries.
The interactive platform "Construction in Central America", of the Trade Intelligence Unit of CentralAmericaData, includes an updated list of public and private construction projects that present environmental impact studies (EIS) to the respective institutions in each country.
The Costarican Institute of Electricity delivered the Las Pailas II Geothermal Plant located in Curubandé, Guanacaste province, at a $366 million cost.
According to projections, the work became more expensive and was delivered months late, since the 2016-2035 Generation Expansion Plan specifies that the plant had an initial cost of $335 million and was to begin operations in January 2019. The total final investment was $366 million.
The Congress of Costa Rica has finally approved a $500 million loan for the state electricity company to carry out electric generation and transmission works, including three geothermal plants.
Of the total amount of the loan with the Inter-American Development Bank (IDB) approved by the Legislative Assembly, close to $200 million will be used to finance the Pailas II, 50 MW, and Borinquen I, 55 MW geothermal projects, both in Liberia, Guanacaste.
The Costa Rican Congress decided not to approve a $500 million loan that the state run power company wants to take out with the IDB to finance geothermal power generation projects in the country.
The deputies argued that they were not clear about the financial situation of the Instituto Costarricense de Electricidad (ICE), which would receive the loan, for which the State would act as guarantor.The decision to halt the loan approval comes two days after President Solis announced he is facing a liquidity crisis.
The financing agreement between the IDB and the government provides funds to complete the geothermal plants Pailas II and Borinquen I and II of 55 MW each, and other electrical infrastructure.
From a statement issued by the Ministry of Finance:
Authorities at the Ministry of Finance, the Costa Rican Electricity Institute (ICE) and the Inter-American Development Bank (IDB) signed a cooperation agreement to finance investment projects CR-X1014 for an amount up to $500 million.
Preparations are being made for the end of January for the tender documents for the supply of building materials and equipment for generators at the Pailas II geothermal project.
The tender, which the Instituto Costarricense de Electricidad (ICE) was going to hold last year, includes a contract for the supply of generating equipment and materials to build the powerhouse.
The deputy leader of the ruling bloc has presented a bill that authorizes the state power company to exploit geothermal energy in protected areas: national parks, biological and forest reserves and wildlife refuges.
"It is nonsense, from an economic, social and environmental standpoint, that the country is rejects the use of existing stocks of geothermal resources in protected areas, like those for example in national parks or forest reserves."
Although the installed capacity is currently small, strong growth is projected in the region as a result of tenders with prices that favor large-scale projects.
A report by IHS Technology predicts rapid growth of photovoltaic capacity in Central America, which will supposedly reach 22 megawatts in 2018.
In reading this report, it should be noted that the country experiencing the largest part of that growth is Honduras, where multiple large-scale projects have been announced in which we have not yet seen the required economic viability, which casts serious doubts on their actual realization.
SMEs in developing countries could generate jobs and significant growth by taking advantage of the market opportunities offered by clean technologies.
From a report by the World Bank:
SMEs in developing countries could generate significant growth and jobs if they take advantage of market opportunities that offer clean technologies, which reach up to $1.6 trillion.
An announcement has been made that the commission studying the country's energy mix will have a proposal ready in April 2015, but the rate will remain "stable" until at least the first quarter of 2016.
Although the government anticipates that by April 2015 they will have a proposal on the subject, the Minister of Environment and Energy, Edgar Gutierrez, said "...
The state run power company has begun development of a management plan and the drilling of wells in the Pailas II project, the first of three plants to be developed in the northern part of the country.
With funding from the Japanese government and approved by the Legislative Assembly the Instituto Costarricense de Electricidad (ICE) will start to build three geothermal projects; Pailas II, Borinquen I and II in the province of Guanacaste.
A leading figure in the ruling party has introduced a bill that would allow state electricity company to produce geothermal energy in national parks or protected areas.
According to the deputy Otton Solis, member of the Citizen Action Party and sponsor of the bill, "... in the national parks there is a potential of about 350 megawatts of geothermal energy that can be harnessed, under highly rigorous environmental requirements."
The construction of the Borinquen 55MW geothermal plant will not begin until 2018 because the state run electricity company in Costa Rica only has three drilling rigs.
An article on Nacion.com includes a video which reports that the Borinquen project will not start until 2018 because the drills owned by the Instituto Costarricense de Electricidad (ICE) are being used for other projects.
Like the entire private sector, the Association of Free Zones of Costa Rica is complaining about the high cost of electricity and lack of concrete actions to resolve the situation.
Before considering Petrocaribe, companies operating under this regime in Costa Rica are suggesting a further diversification of the energy matrix in order to lower costs.
With the approval of the international loan the Instituto Costarricense de Electricidad will be able to access funds to build three plants of 55 MW each.
The approval given by the Legislature in a second debate for a $619 million loan is part of the "Cooperation Agreement for a sector loan for the development of geothermal energy in Guanacaste", "...