State authorities Instituto Costarricense de Electricidad (ICE), rector of the country’s power sector, signed the documents with the companies, which will begin proceedings to secure funding and obtain the relevant permits for projects.
ICE President, Teofilo de la Torre, told a news conference that companies have a term of one year to comply with the requirements and then sign contracts for 20 years for the electricity to be sold to ICE, only authorized to distribute power.
Of the six initiatives, four are wind power projects of 20 MW each, and the other two are small-scale hydropower generated 14 and 5 megawatts.
The authorities expect to sign another five year commitment letters with private companies for similar projects that will add 41 megawatts.
Private investment in these eleven projects could reach $ 600 million, according to official estimates.
At the signing of the letters was there to witness the Costa Rican president, Laura Chinchilla, who highlighted the work it has done in recent decades ICE and said that, despite this, the need for greater private participation.
At present, the installed power generation capacity of Costa Rica is 2,650 MW, 90% from renewable sources, which meets the demand of around 1545 MW.
Almost all electricity is generated by the ICE, which has managed to bring the energy to 99.3% of the country, but officials estimate that demand will increase by 5% annually, making it necessary to increase the generation, especially private .
The law allows private companies to generate 15% of the country’s total energy, which the Government of Chinchilla wants to increase to 25% with a bill that is in Congress and facing the rejection of several opposition parties ICE and unions.
The Costa Rica News (TCRN)
San Jose Costa Rica