IDB to finance Costa Rica energy sector

The Inter-American Development Bank (IDB) has approved a US$250 million loan to support the development of Costa Rica's electricity sector.

Nearly US$ 98 million of the IDB loan will co-finance the Reventazon Hydroelectric Project, currently under development and set to go online in 2016 with a capacity of 305 MW. The project includes a 130 m high dam that will create an 8 km² reservoir.

Further investment will be made into renewable energy developments and modernisation. IDB financing will also go towards improving and strengthening transmission and regulation of electric energy in Costa Rica, in line with regional electricity regulations.

As at 2011, the country's installed electricity capacity was 2650 MW, of which 77% was from renewable sources. At present, current demand sits at 1545 MW. However, demand is expected to increase by +5.1% on average per year. Costa Rica plans to increase capacity by 1714 MW between now and 2024 to meet this demand, with 98% of the new capacity coming from renewable sources.