COSTA RICA
COSTA RICA
Costa Rica is widely regarded as a renewable-energy pioneer and one of the clearest examples of a country operating an almost entirely renewable electricity system. In 2024, renewables supplied nearly 100% of electricity generation, placing Costa Rica among the countries with the highest renewable shares worldwide. Hydropower forms the backbone of the system, complemented by geothermal, wind, solar and bioenergy (International Energy Agency [IEA], 2025, p. 25).
Costa Rica’s leadership is particularly notable because it has developed a diversified renewable electricity mix rather than relying exclusively on a single technology. Its volcanic geography provides significant geothermal resources, while hydropower and wind contribute substantially to electricity production. The country has also achieved one of the highest levels of building electrification in Latin America and the Caribbean, making its electricity system an important model for SDG 7 (IEA, 2023; Organisation for Economic Co-operation and Development, 2025).
Despite its renewable-electricity leadership, Costa Rica still faces the challenge of extending its clean-energy transition beyond the electricity sector. Petroleum products remain important particularly in transport, meaning that an almost fully renewable power system does not yet translate into an entirely renewable national energy system. Electrification of transport and greater energy efficiency are therefore essential to reducing fossil-fuel dependence further (IEA, 2023).
Another challenge is diversifying renewable generation while adapting to climate-related risks affecting hydropower. Costa Rica possesses considerable untapped wind, solar and geothermal potential, and additional solar, wind and biomass projects have been developed to strengthen diversification. Expanding these resources can reduce vulnerability to changing rainfall patterns while allowing Costa Rica to maintain its position as a global renewable-energy pioneer (Organisation for Economic Co-operation and Development, 2025).
International Energy Agency. (2025). Renewables 2025: Analysis and Forecasts to 2030. https://iea.blob.core.windows.net/assets/76ad6eac-2aa6-4c55-9a55-b8dc0dba9f9e/Renewables2025.pdf
International Energy Agency. (2023). Costa Rica Energy Profile. https://www.iea.org/reports/costa-rica-energy-profile
International Energy Agency. (n.d.). Costa Rica. Retrieved September 7, 2026, from https://www.iea.org/countries/costa-rica
Organisation for Economic Co-operation and Development. (2025). OECD Economic Surveys: Costa Rica 2025. https://doi.org/10.1787/048cf07b-en