Costa Rica Set to Move Forward with Solar Energy Surplus Buyback Plan

As a country known for its sustainability practices, it should come as no surprise that Costa Rica is investing heavily in solar power. The Regulatory Authority for Public Services recently announced a new plan that will allow businesses and families to install or use solar panels and then sell the surplus energy generated by those panels. The plan is anticipated to be ready to roll out in February.

All that is left is for the Authority to establish tariffs for access and interconnection. The tariffs were analyzed at a recent meeting and a decision should be reached within just a few weeks in time for the February implementation of the program.

Across Costa Rica, all national electric companies have indicated they are willing to cooperate with the program. The only exception remains the National Power and Light Company, which has requested additional preparation time.

Through the new program, households and businesses will be able to sell any additional power their solar panels generate back to the Costa Rican Institute of Electricity, or ICE based on the current prevailing rates. For instance, if a household produces 25 megawatts per month but only consumes 10 megawatts of energy, they could sell the remaining 15 units to the system.

Costa Rica is already home to a large-scale solar energy plant, constructed in Guanacaste through a $10 million donation from the Japanese. The solar park, equipped with 4,300 solar panels, is capable of generating 1.2 gigawatts-hours annually, which is enough to power approximately 600 households.

The new two-way metering system would also make it possible for households to build up credit with their electricity company while also boosting Costa Rica's green image even further.

Participation in the program could result in reducing the cost of electricity, which could prove to be particularly advantageous during the dry season, when there is often an increase in prices. If successful, the program could also assist in combatting the energy rationing that often occurs during the late dry season while also reducing Costa Rica's reliance on petroleum.

Costa Rica already possesses a hydropower energy portfolio. The International Energy Association reports that 72 percent of Costa Rica's electricity was generated by hydroelectricity in 2011. As a result of Costa Rica's climate; however, the country must often resort to electricity rationing and the use of petroleum in order to make up for the reduced hydroelectric generation that occurs late during the dry season. Furthermore, electrical losses often occur as electricity travels the miles between power plants to consumers. It is hoped that by implementing the new system, such challenges will be eased while simultaneously providing households and businesses with a more economical approach to energy production.