Tuesday, March 8, 2011

News from Costa Rica: Wow: Some enlightened Policy!

I just learned something interesting -- about some enlightened policy in Costa Rica. From ICE (the government owned electric monopoly): As consumption goes up, so does the rate. The first 200 KWh sells for $0.13. From 200-300 is $0.24. Everything above that is $0.33/KWh. They actually want you to use less! And not just paying lip service to it, but building it into their pricing structure. If you want to be wasteful, you will pay!!

Then, to top it off, they have net metering, and run the meter backward at the highest rate! Unlike some US utilities that buy it back at wholesale...

And, unlike almost everything else that is imported here, they waive import duty on solar PV so material costs are relatively low. And installation labor is cheap. I was just quoted $4.65/Watt installed cost for 5-20 KW systems.

80% of the country's electricity comes from hydro. A few years ago it was 100%. As demand goes up, they have to fire up extremely expensive oil-fired power plants at $0.85 KWh to make up the difference. Two years ago when climate change brought about a 2-week delay in the rainy season, the country had rolling blackouts. It is not in ICE's interest to have to build new fossil-based generation capacity just as oil production is peaking.

How nice to see some enlightened policy -- something besides drill baby drill. Hope the CIA, the Bushes, the WTO and CAFTA don't screw it up!

Alternative energy companies are thriving here. Here's a link to a nice 'Bill Reduction Tool' by one of them.

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