Release date: 6 May 2013
Promoter – Financial Intermediary
INSTITUTO COSTARRICENSE DE ELECTRICIDAD (ICE)
The project involves the extension of a geothermal power generating plant with a new turbine hall, condensing steam turbine unit providing a total of 55 MWe, and the extension of production at the existing steamfield. The plant is located in north-western Costa Rica.
The project will provide for growing electricity demand from a renewable energy source, supporting the EU priority targets of climate change mitigation and renewable energy. The project will provide the Costa Rican electricity network with renewable energy. Transmission interconnections to neighbouring countries will allow for regional trade of produced electricity. Costa Rican electricity is produced almost totally from renewable sources, while Nicaraguan electricity generation is 65% fossil-based. This project will avoid the emission of CO2 and other harmful air pollutants from alternative fossil fuel generation at the national or regional level. The project is expected to increase Las Pailas geothermal power plant production with 410 GWh/a. The project produces base load renewable energy and production does not change significantly with the seasons or weather conditions, unlike other renewable energy plants in Costa Rica. This is an extra benefit of the project, as the majority of Costa Rican and regional renewable generation is seasonal/weather dependent.
This operation is covered by the EU Guarantee for EIB loans outside the EU.
- Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
EUR 52 million
Total cost (Approximate amount)
EUR 254 million
The project promoter has made the relevant studies, produced the Environmental and Social Impact Assessment (ESIA) for the Pailas 1 project and updated it for this Pailas 2 project. ESIA documentation and process has been approved by competent environmental authority SETENA. The Bank will review the ESIA process and documentation during the appraisal and ensure compliance with its environmental and social standards.
The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank’s Guide to Procurement.
Signed - 29/11/2013
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).