BALANCING SUSTAINABILTIY: A VISIT TO COSTA RICA
On a recent trip to Costa Rica, I had the chance to sit down with our local guide and learn about the country's unique energy system. The conversation began as we arrived in La Fortuna, a small town of about 15,000 people, nestled in the shadow of the beautiful Arenal Volcano. Just off the horizon of nearby Lake Arenal, rows of wind turbines stood in contrast to the lush green jungle. They reminded me of the turbines dotting the plateaus of Texas along I‑20. Rust is quickly noticed on the turbines. A majority of the turbines have been in place since 1996, making Costa Rica the first Central American country to use wind commercially. Lake Arenal, Costa Rica’s largest lake, is also complemented by the Arenal Hydroelectric Dam.
Costa Rica’s energy model is extraordinary. With no active oil and gas production, the country generates about 98% of its electricity from renewable sources—primarily hydro, wind, and geothermal power. Its remaining dependence on oil and gas is almost entirely tied to transportation, sourced through imports. To put things into perspective, Costa Rica’s total population is around 5.2 million—less than the Dallas–Fort Worth metro area alone—so grid demand is naturally lower than what we face in the U.S.
Arenal Volcano
Tejona Wind Farm
Our experience in Costa Rica was wonderful—the people are warm and welcoming, the food is flavorful and fresh, and the natural beauty is unmatched. Tourists enjoy high water purification standards, so in most populated areas, drinking tap water is perfectly safe. The road system, while not as expansive as in the U.S., is reasonably well maintained, making travel between regions smooth.
Costa Rica relies on petroleum—for cars, airplanes, and other transport—from abroad. In 2024, the U.S. was the single largest supplier of “mineral fuels, oils, distillation products” to Costa Rica, sending roughly $2.14 billion worth of these products U.S. Energy Information Administration+3Trading Economics+3U.S. Energy Information Administration+3Trading Economics.
While Costa Rica's renewable-first approach is commendable, it’s not without challenges. In May 2024, the country endured one of its rare nationwide power disruptions. A severe drought—driven by El Niño—depleted hydroelectric reservoirs, and with wind and solar unable to compensate, the Costa Rican Electricity Institute (ICE) announced rolling blackouts and scheduled rationing across several provinces. Fortunately, rains later that month improved reservoir levels, and ICE canceled the cuts U.S. Energy Information Administration+1. This episode underscores the delicate balance between renewable abundance and weather dependency.
Looking forward, Costa Rica’s growth is compelling to watch. The capital, San José, has become a thriving hub for technology and international business. Major corporations such as Intel, Amazon, and Procter & Gamble have established significant operations there, fueling economic expansion.
The population grows at a rate of roughly 1% per year, not accounting for tourism swings, which compounds grid demand over time. What makes Costa Rica unique is the deep cultural respect for its environment: nature and wildlife are woven into its national identity. My hope is that as growth continues, Costa Rica finds ways to expand its energy capacity without sacrificing this delicate ecological balance.
Exploring Papagayo
The occasional challenge, like the May 2024 power shortage, reminds us of the inherent trade-offs of renewables. But with steady planning, diversified sources, and smart infrastructure bolstering its growth, Costa Rica offers both inspiration and a viable model for sustainable energy futures. Pura Vida!