Costa Rica, located in Central America between Nicaragua and Panama, is bordered by the Caribbean Sea to the northeast and the North Pacific Ocean to the southwest. The country has a diverse topography, with coastal plains and volcanic mountains, home to 5% of the planet's biodiversity. Internationally renowned for its commitment to conservation, Costa Rica has designated 26% of its land for protection. However, the nation faces significant vulnerability to extreme climate events and natural hazards, due in part to the presence of populations in vulnerable areas and the country's pronounced risk of sea level rise.
Investing in Costa Rica
Costa Rica's investment plan as part of the Renewable Energy Integration program (REI) was endorsed in November 2023 by CIF's Trust Fund Committee.
While Costa Rica has high electricity access (99.4%) and 99% electricity generation from renewable sources, the country’s total energy matrix relies heavily on fossil fuels, mainly for transportation and industry. The electrical grid must be enhanced to enable greater flexibility for the growth of new renewable energy sources — and investments are urgently needed to electrify transport and industry.
CIF’s concessional funding, together with financing from IDB, IFC, and World Bank, will help Costa Rica modernize the electricity system with smart grids; install charging stations for electric vehicles; and replace industrial combustion equipment with electric equipment. At full implementation, Costa Rica projects to install 724,000 advanced metering system units to provide more than two-thirds of the country with smart meter coverage; provide charging infrastructure to serve initially 185 electric buses; replace 5% of the 628 industrial boilers that run on fossil fuels with electric ones; provide 17,729 tCO2e reduction per year; and reduce service costs by $1.2 million annually.
