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Subject

Costa Rican electricity prices.

Significance

A December report by the UN Economic Commission for Latin America and the Caribbean (ECLAC) shows that Costa Rica has the highest electricity costs in Central America. This has reopened debate about liberalising the electricity sector, amid concerns that manufacturing competitiveness could be undermined.

Impacts

The regional electricity market has been growing but expansion will be modest in the immediate future.

Costa Rica’s electricity will come entirely from renewable sources from early 2018.

Stagnant manufacturing could exacerbate industry pressure for government action to reduce electricity costs.

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