Nearshore Americas

Rolling Blackouts Expected in Costa Rica as Water Crisis Hits the Power Grid

Rolling blackouts are coming to Costa Rica, as the country faces a severe electricity crisis due to dwindling water reservoirs.

Costa Rica’s primary power distributor announced plans to implement scheduled blackouts in response to the situation.

Hydroelectric power constitutes over 75% of Costa Rica’s electricity generation, with wind and thermal plants contributing the rest. Additionally, the country imports power from the regional grid to meet demand.

Costa Rica has already been dealing with rising temperatures and climate change-induced droughts, leading to a significant decrease in reservoir water levels.

The Costa Rican Electricity Institute (ICE) attributes this deficit to the extreme effects of the current El Niño phenomenon, which have substantially reduced hydroelectric plant flows across the Central American isthmus.

Roberto Quirós Balma, Electricity Manager at ICE, remarked on the unprecedented lack of rainfall and falling wind levels.

Earlier in May, Costa Rica experienced a prolonged blackout due to disruptions in electricity production at both wind and thermal power plants.

Sign up for our Nearshore Americas newsletter:


The reliance on thermal power, which necessitates increased fuel expenditure, is prompting the government to consider raising electricity prices. Reports from local media, citing ICE, suggest that prices could surge by more than 25% by year’s end.

The prospect of more expensive electricity has sparked backlash from private businesses. The Costa Rican Union of Chambers and Associations of the Private Business Sector (Uccaep) voiced strong opposition to the measure, warning that such increases could significantly impact their operations.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

Add comment