The Central American Bank for Economic Integration (CABEI) approved US$485 million in financing for the Energy Security and Sustainability Program (SENSOS) in Costa Rica, according to a press release issued on August 31, 2026. The initiative aims to strengthen the country’s energy security, improve the reliability of the electricity supply, and bolster the grid’s resilience to adverse weather conditions. The program is set to benefit more than half a million residents. It targets the National Electric System (SEN) through two major investments. The financing reinforces long-term stability and service continuity across Costa Rica.
Costa Rica maintains one of the most diversified renewable energy mixes in the world, drawing on hydroelectric, geothermal, and wind power, among other renewable sources. However, the inherent variability of these sources requires supplementary generation to ensure system stability. This need becomes particularly relevant during periods of low renewable output. Extreme weather events also pose risks to the reliability of the grid. The new investment addresses these structural challenges within the national energy matrix.
The financing will strengthen key capabilities of the National Electric System (SEN), ensuring operational stability and service continuity. The first component involves the modernization of a dual-fuel plant in Moín, Limón Province. This upgrade will add 200 MW of baseload generation to the SEN. The added capacity is intended to secure the operational reliability of the electricity supply. The intervention supports both current demand and future energy needs.
The second component consists of the construction of the Río Piedras Hydroelectric Project in Guanacaste Province. The plant will have an installed capacity of up to 7 MW and an estimated average annual generation of 40.29 GWh. This project stems from the Water Supply Project for the Middle Tempisque River Basin and Coastal Communities (PAACUME), also funded by CABEI. Its purpose is to utilize the large storage reservoir associated with PAACUME. The initiative combines water supply infrastructure with clean electricity generation.
Through this transaction, CABEI reaffirms its commitment to Costa Rica’s sustainable development. The Bank supports strategic investments that strengthen energy infrastructure and promote access to reliable and clean energy. The program is expected to contribute to the well-being of the population. It also aims to enhance the competitiveness and resilience of member countries’ economies. The approval underscores CABEI’s continued role in advancing regional energy priorities.