Latin America&Caribbean Energy Transition 2025

Energy transition goal: Renewable energy scale-up. Problem description: Costa Rica needed a clear, long-term strategy to align with Paris Agreement commitments and achieve net-zero emissions. Without an integrated national plan, fragmented efforts risked undermining renewable energy momentum, economic competitiveness and the credibility of the country’s climate leadership. Solution description: In 2019, Costa Rica launched its National Decarbonization Plan (NDP), mapping a phased path to net zero by 2050. Backed by strong political commitment, the plan leveraged state utilities for large-scale implementation. Grid upgrades, smart meters and renewables integration ensured reliable delivery, while international finance mobilized investment, reinforcing Costa Rica’s leadership in efforts to reach 100% renewables-based electricity. Enablers used: Regulation and political commitment: Strong political and institutional commitment to long-term energy goals. Infrastructure: Phased implementation approach to manage complexity and ensure delivery at scale; state utility as key implementation partner, enabling coordination and operational execution. Financial Investment: International finance mobilized to support grid upgrades, smart technologies and renewables deployment. Stakeholders involved: –National ministry of energy and environment. –State electricity and telecom provider. –International finance institutions. Outcomes achieved: –Renewable scale-up through 100% renewable electricity mix, deployment of 475,000 smart meters and 61% of first phase National Decarbonization Plan (NDP) goals reached by 2022. Exportable lessons: –Strong political commitment: Strong institutional and governmental commitment drives investment confidence and international leadership. –Phased planning ensuring scalability: Structured implementation phases help manage complexity and sustain progress. –Utility-led coordination: State utilities can anchor system-wide delivery and execution.CASE STUDY 4 National decarbonization plan in Costa Rica (2019-ongoing)53 Energy Transition Readiness: Latin America and the Caribbean 25