The Costa Rica Electricity Institute (ICE) announced the suspension for indefinite time of the hydroelectrical project El Diquis in the South Pacific, after seven years and an investment of $146 million.
The reasons behind the decision were explained by Irene Cañas, Executive Director of ICE during a press conference this Friday, November 2.
Diquis project involved a hydroelectric plant of 650 megawatts (MW) in the area of Buenos Aires, Puntarenas, it was expected to be ready by 2024 and it started out as a plan to satisfy the increase in the demand of energy and also to create development in the area.
However, the new executive director, explained that this is one of several measures to improve the financial conditions of the entity that this year expects to close with losses of close to -22%. Other measures include the closure of the thermal plants in San Antonio and Barranca considered inefficient and which represent high operational costs; and the suspension for three years of the geothermal project Borinquen I in Cañas Dulces, Liberia, Guanacaste which was programmed for 2024.
The Diquis project had faced problems and delays since the beginning, particularly due to the opposition of the indigenous communities due to the environmental impacts they considered it would have.
Members of the Industrial Chamber celebrated the decision of ICE since they considered that this project could have generated more pressure (rise) on the electricity rates since the offer would have exceeded the demand.
Cañas affirmed that the installed electric generation in Costa Rica has grown by 46% between 2008 and 2017, enough to satisfy the demand for several years.
Former executive president Carlos Obregon, had defended the Diquis project, stating that once it was finished, and along with the strengthening of the program of geothermic energy generation, the demand of electric energy in the country would be guaranteed in a clean and sustainable way through 2035.
The project was still in the viability studies stage.
The reasons behind the decision were explained by Irene Cañas, Executive Director of ICE during a press conference this Friday, November 2.
Diquis project involved a hydroelectric plant of 650 megawatts (MW) in the area of Buenos Aires, Puntarenas, it was expected to be ready by 2024 and it started out as a plan to satisfy the increase in the demand of energy and also to create development in the area.
However, the new executive director, explained that this is one of several measures to improve the financial conditions of the entity that this year expects to close with losses of close to -22%. Other measures include the closure of the thermal plants in San Antonio and Barranca considered inefficient and which represent high operational costs; and the suspension for three years of the geothermal project Borinquen I in Cañas Dulces, Liberia, Guanacaste which was programmed for 2024.
The Diquis project had faced problems and delays since the beginning, particularly due to the opposition of the indigenous communities due to the environmental impacts they considered it would have.
Members of the Industrial Chamber celebrated the decision of ICE since they considered that this project could have generated more pressure (rise) on the electricity rates since the offer would have exceeded the demand.
Cañas affirmed that the installed electric generation in Costa Rica has grown by 46% between 2008 and 2017, enough to satisfy the demand for several years.
Former executive president Carlos Obregon, had defended the Diquis project, stating that once it was finished, and along with the strengthening of the program of geothermic energy generation, the demand of electric energy in the country would be guaranteed in a clean and sustainable way through 2035.
The project was still in the viability studies stage.
