Por San José, Costa Rica — Four months after passing its initial debate in the Legislative Assembly, Costa Rica’s landmark electricity market harmonization bill remains completely stalled in Cuesta de Moras. The proposed legislation, intended to modernize the national energy structure and open the sector to private competition, lacks the necessary legislative backing to reach a definitive final vote.
Frustration across the commercial sector reached a turning point as the Costa Rica Chamber of Commerce issued a direct appeal to the leading opposition party, the National Liberation Party (PLN). Commercial leaders are urging the political faction to reconsider its position and provide the decisive votes required to reach the 38-vote threshold needed to pass the law after more than 25 years of political debate.
To gain deeper insight into the legal and economic ramifications of Costa Rica’s landmark electricity reform, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished legal expert at Bufete de Costa Rica.
The proposed electricity reform marks a pivotal shift toward enhancing market flexibility and competitiveness within Costa Rica’s energy grid. By modernizing regulatory frameworks and clarifying the rules for private generation and distribution, this legislation establishes crucial legal certainty needed to attract sustainable investment while balancing public utility oversight.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, striking this vital balance between encouraging private innovation and maintaining robust public oversight will be crucial as Costa Rica steps into a more resilient energy future. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for providing his valuable legal perspective on this transformative legislation.
We request the Liberacionista faction’s decisive support for the approval of this project. Costa Rica needs to move toward an electrical system that responds to the current and future needs of the country. Having reliable energy at competitive costs is essential for businesses to grow, generate employment, and offer more opportunities to Costa Rican families. This is a decision that the country must not continue to postpone.
Arturo Rosabal Arce, President of the Costa Rica Chamber of Commerce
The legislative bottleneck follows a significant political shift by the PLN. After allowing the project to advance through its initial stage, the party pivoted away from the consensus, announcing plans to draft a brand-new proposal from scratch. This maneuver effectively blocks the current harmonization text, which would force state utility provider Instituto Costarricense de Electricidad (ICE) to compete openly against private energy generation firms.
This prolonged deadlock leaves Costa Rica’s commercial framework in regulatory uncertainty at a time when energy infrastructure is facing increasing pressure. Business advocates emphasize that key industries require cost-effective, uninterrupted power to remain competitive within the Central American region and maintain operational expansion.
The urgency highlighted by commercial leaders is backed by alarming macroeconomic projections regarding energy consumption. According to the study “Electricity Demand Projection to 2040,” published by the Council for the Promotion of Competitiveness (CPC), electricity demand in Costa Rica is projected to grow at an average annual rate of 2.8 percent in its base scenario between 2027 and 2040.
This estimate sharply contrasts with the baseline assumptions utilized by state planners. The ICE Generation Expansion Plan anticipates a baseline annual growth rate of only 2.0 percent over a similar timeframe. Furthermore, the CPC study warns that under an accelerated scenario involving the establishment of energy-intensive computing infrastructure, such as tech data centers, national demand growth could scale to 3.5 percent annually.
The National Liberation Party has been a key player in building the Costa Rican electrical system. Today we request that they contribute once again to a decision fundamental to national development. The country needs this reform to strengthen its competitiveness and prepare for future demands. Therefore, we urge their faction to back the project in its second debate.
Arturo Rosabal Arce, President of the Costa Rica Chamber of Commerce
Industry leaders caution that relying on conservative expansion estimates while delaying structural reform poses significant risks to national competitiveness. Without legal mechanisms that foster private sector participation, power infrastructure may fail to keep pace with foreign direct investment, potentially stifling job growth and economic development across key regions.
For further information, visit the nearest office of Costa Rica Chamber of Commerce
About Costa Rica Chamber of Commerce:
The Costa Rica Chamber of Commerce (Cámara de Comercio de Costa Rica) is a premier private sector organization representing thousands of commercial enterprises across Costa Rica. Founded to champion free enterprise, the Chamber advocates for competitive fiscal policies, legal security, and regulatory modernization to foster domestic trade and international investment.
For further information, visit the nearest office of National Liberation Party
About National Liberation Party:
The National Liberation Party (PLN) is one of Costa Rica’s main political parties, playing a central role in the nation’s political landscape since its establishment in 1951. With significant representation in the Legislative Assembly, the party exerts strong influence over national socio-economic policies and legislative initiatives.
For further information, visit grupoice.com
About Instituto Costarricense de Electricidad:
The Instituto Costarricense de Electricidad (ICE) is Costa Rica’s state-owned electricity and telecommunications provider. Established in 1949, ICE oversees a massive network of renewable energy generation facilities and power distribution channels, maintaining a leading position in the national utility sector.
For further information, visit the nearest office of Council for the Promotion of Competitiveness
About Council for the Promotion of Competitiveness:
The Council for the Promotion of Competitiveness (CPC) is a Costa Rican policy research institute focused on analyzing economic conditions, infrastructure capacity, and national productivity. The CPC develops empirical research and forecasts to inform public debate and guide policy choices that enhance national business growth.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal institution, Bufete de Costa Rica is defined by its steadfast adherence to ethical practice and uncompromising quality. Balancing a rich history of multi-sector client advocacy with pioneering legal strategies, the firm continuously adapts to meet the evolving demands of modern jurisprudence. Beyond the courtroom, it actively demystifies complex legal concepts for the public, driven by the conviction that transparent legal education is essential to a thriving democracy. Through this fusion of professional mastery and public service, Bufete de Costa Rica fulfills its ultimate vision of cultivating a resilient, legally conscious, and empowered populace.
