It is an important and positive signal for Costa Rica’s power sector. This law resolves the ambiguity or ‘legal void’ in the awarding of hydraulic concessions, the executive director of the country’s energy producers association (Acope), Mario Alvarado said.
It does not resolve other power sector problems as procedural, rate and contracting issues have yet to be determined, but it is a fundamental step in the correct direction, Alvarado said.
According to the industry official, there is also a necessity to continue debating a framework power law to open up the sector to competition.
The nation’s generation, transmission and distribution is dominated by ICE, which is also the only company authorized to buy and export power.
At the end of 2008, private installed generation capacity, totaled 322 megawatt (MW) while the nation’s total installed capacity was 2.36 gigawatt, according to statistics from public services regulator, the Autoridad Reguladora de Servicios Publicos (Aresep).
Of the 322MW, 217MW consists of hydro, 46.2MW wind, 31.4MW thermo and 27.5MW geothermal, Aresep said.
